Proposed Wholesale Power and Transmission Rates, Negotiated Pacific Northwest Coordinating Agreement Rates, and Transmission Terms and Conditions

DEPARTMENT OF ENERGY

Bonneville Power Administration

Proposed Wholesale Power and Transmission Rates, Negotiated

Pacific Northwest Coordinating Agreement Rates, and Transmission Terms

and Conditions

AGENCY: Bonneville Power Administration (BPA), DOE.

ACTION: Availability of Wholesale Power and Transmission Rates, Pacific

Northwest Coordinating Agreement Rates and Transmission Terms and

Conditions.

-----------------------------------------------------------------------

SUMMARY: BPA File No: WP-95, TR-95, TC-95. On December 28, 1994,

Bonneville Power Administration (BPA) published a Notice of Intent to

Revise Transmission Rates, 59 FR 66946 and Notice of Intent to Revise

Wholesale Power Rates, 59 FR 66947. Subsequently, BPA also published

Federal Register Notices of Proposed Wholesale Power Rate Adjustment

(60 FR 8496), Proposed Transmission Rate Adjustment (60 FR 8505), and

Hearing and Opportunity for Public Comment Regarding Proposed

Comparable Transmission Terms and Conditions (60 FR 8511). In those

Notices, BPA stated that Wholesale Power and Transmission Rates, the

Rates for the Pacific Northwest Coordinating Agreement, and the

Transmission Terms and Conditions would be published separately.

DATES: The following schedule information is provided for informational

purposes. BPA's proposed schedule, as well as a schedule for additional

prehearing conferences will be published later. The final schedule will

be established by the Hearing Officer at the Prehearing/Settlement

conference on March 15, 1995.

March 15, 1995--Settlement Conference on Scheduling

October 29, 1996--Final Record of Decision published

BPA also will be conducting public field hearings. A field hearing

schedule will be announced at the prehearing conference. A notice of

the dates, times, and locations of the field hearings will be made

later through a Federal Register Notice, mailings and public

advertising.

ADDRESSES: The date for written comments by participants must be

received by June 16, 1995, to be considered in the Draft Record of

Decision (ROD). Written comments should be submitted to the Manager,

Corporate Communications--CK; Bonneville Power Administration; P.O. Box

12999; Portland, Oregon 97212.

FOR FURTHER INFORMATION CONTACT: Mr. Michael Hansen, Public Involvement

and Information Specialist, at the address listed above, (503) 230-4328

or call toll-free 1-800-622-4519. Information may also be obtained

from:

Mr. Steve Hickok; Group Vice President, Sales and Customer Service;

P.O. Box 3621; Portland, OR 97232 (503-230-5356)

Mr. George Eskridge; Manager, SE Sales and Customer Service District;

1101 W. River, Suite 250; Boise, ID 83702 (208-334-9137)

Mr. Ken Hustad; Manager, NE Sales and Customer Service District;

Crescent Court, Suite 500; 707 Main; Spokane, WA 99201 (509-353-2518)

Ms. Ruth Bennett; Manager, SW Sales and Customer Service District; 703

Broadway; Vancouver, WA 98660 (360-418-8600)

Ms. Marg Nelson; Manager, NW Sales and Customer Service District; 201

Queen Anne Ave. N., Suite 400; Seattle, WA 98109-1030 (206-216-4272)

Responsible Official: Mr. Geoff Moorman, Manager for Pricing,

Marginal Cost and Ratemaking, is the official responsible for the

development of BPA's rates. Mr. Dennis Metcalf, BPA Transmission Team

Lead, is the official responsible for development of BPA's transmission

terms and conditions.

SUPPLEMENTARY INFORMATION:

Table of Contents

I. Introduction

II. Charges Under the Amended and Integrated Pacific Northwest

Coordination Agreement

III. Transmission Terms and Conditions

I. Introduction

The Pacific Northwest Electric Power Planning and Conservation Act

(Northwest Power Act) provides that BPA must establish and periodically

review and revise its rates so that they are adequate to recover, in

accordance with sound business principles, the costs associated with

the acquisition, conservation, and transmission of electric power, and

to recover the Federal investment in the Federal Columbia River Power

System (FCRPS) [[Page 12915]] and other costs incurred by BPA. The

Federal Power Act, as amended by the Energy Policy Act of 1992,

provides that BPA may institute a regional hearing process on proposed

transmission terms and conditions of general applicability.

BPA has determined that its initial power rate proposal should

include a stable, 5-year rate for most, if not all, of its requirements

service. BPA anticipates that the work necessary to assemble such a

proposal will take until late March or early April of 1995. Since such

a rate would cover the bulk of BPA's firm sales, its impact on BPA's

overall proposal is fundamental. Thus, the information BPA is releasing

now should be considered preliminary. Information in BPA's preliminary

proposal concerning rate design, product definition and pricing,

revenue requirement, and other matters should provide parties valuable

information that will enable them to better assess BPA's initial

proposal when it is released in late March or early April.

In the Federal Register notices published February 14, 1995 (60 FR

8497, 60 FR 8505, and 60 FR 8511), BPA stated that it would publish its

preliminary proposed rate schedules in the Federal Register. However,

due to the length of the preliminary proposed rate schedules and

developments related to BPA's tiered rates proposal, the preliminary

proposed Wholesale Power and Transmission Rate schedules will not be

published in the Federal Register. They are available from BPA's Public

Information Center. To request the preliminary proposed Wholesale Power

and Transmission Rate Schedules, call BPA's document request line:

(503) 230-3478 or call toll free 1-800-622-4520.

II. Charges Under the Amended and Integrated Pacific Northwest

Coordination Agreement

All terms contained herein have the meaning accorded them in the

Amended and Integrated Pacific Northwest Coordination Agreement.

A. Interchange Energy Imbalances

1. Initial Deliveries of Interchange Energy

[GRAPHIC][TIFF OMITTED]TN09MR95.000

Heat rate=10,000 BTU/kWh

Fuel price=Average natural gas price at Sumas, Washington, in $/MMBTU

(dollars per million BTUs), as published in Inside FERC, for the twelve

months ending the immediately preceding June 30.

Adder=4.75 mills/kWh, adjusted each August 1 beginning August 1, 1997,

by the change in the Consumer Price Index (for all urban consumers as

published by the Bureau of Labor Statistics) for Portland, Oregon, for

the twelve-month period ending the immediately preceding June 30.

2. Return of Interchange Energy

The Energy Charge for return of Interchange Energy shall be the

charge in effect for initial deliveries of Interchange Energy at the

time the energy being delivered as Return of Interchange Energy was

delivered as an initial delivery of Interchange Energy.

B. Interchange Energy Service Charge

1. No charge for energy returned between 7:00 a.m. and 10:00 p.m.,

Monday through Saturday.

2. 2.50 mills per kilowatthour of energy returned at other hours,

unless such energy was supplied during such other hours, or its return

during such other hours was requested, in either of which events there

shall be no charge.

C. Interchange Capacity and Emergency Capacity Imbalances

$2.00 per Kilowatt Week of Demand.

D. Transfers Due to Forced Outage

1. Transfer Due to Loss of Thermal Capability

The charge for Interchange Capacity Imbalances plus the greater of

a) the charge for Interchange Energy Imbalances and b) the incremental

costs of operating the resource used to supply the requested energy

plus 4 mills per kilowatthour.

2. Transfer of Emergency Capacity

The charge for Emergency Capacity imbalances plus the greater of a)

the charge for Interchange Energy Imbalances and b) the incremental

costs of operating the resource used to supply the requested energy. In

the event that BPA requires the receiving party to return the energy

associated with the transfer of Emergency Capacity, only the charge for

Emergency Capacity imbalances shall apply.

E. Holding Interchange Energy Service Charge

1. Basic Charge

2.00 mills per kilowatthour of Holding Interchange Energy on

delivery to BPA and 1.50 mills per kilowatthour of Holding Interchange

Energy on return from BPA (3.50 mills per kilowatthour total). A loss

of Holding Interchange Energy because of spill will result in a refund

of 2.00 mills per kilowatthour of Holding Interchange Energy that is

converted to Stored Energy and spilled.

2. Reshaping Charge

2.50 mills per kilowatthour of energy, applied in each hour during

which the energy delivered or returned is less than the hourly average

of energy delivered or returned during that day, to the difference

between the daily hourly average of energy delivered or returned during

that day and the amount of energy delivered or returned during such

hour. The reshaping charge is in addition to the basic charge.

F. Stored Energy Service Charge

1. Charges Paid On Delivery Of Energy To A Reservoir Party

a. 2.00 mills per kilowatthour of energy delivered to BPA on Light

Load Hours.

b. 1.00 mill per kilowatthour of energy delivered to BPA on Heavy

Load Hours.

c. No charge for energy delivered to BPA on Peak Load Hours.

2. Charges Paid On Return Of Energy Stored Less Than Two Weeks

a. 1.00 mill per kilowatthour of energy returned from BPA on Light

Load Hours.

b. 3.50 mills per kilowatthour for energy returned from BPA on

Heavy Load Hours.

c. 5.00 mills per kilowatthour for energy returned from BPA on Peak

Load Hours.

3. Charges Paid On Return Of Energy Stored For Two Weeks Or More

a. No charge for energy returned from BPA on Light Load Hours.

b. 2.50 mills per kilowatthour for energy returned from BPA on

Heavy Load Hours.

c. 4.00 mills per kilowatthour for energy returned from BPA on Peak

Load Hours.

4. Charges Paid On Return Of Energy In Cases Of Imminent Spill

a. No charge for energy returned from BPA on Light Load Hours.

b. 2.50 mills per kilowatthour for energy returned from BPA on

Heavy Load Hours.

c. 2.50 mills per kilowatthour for energy returned from BPA on Peak

Load Hours.

5. Refund Of Storage Charges In Cases Of Spill

In the event that stored energy is not returned to a party because

of spill on [[Page 12916]] BPA's system, or in the event that BPA

transfers the stored energy to another Reservoir Party to avoid spill

and the transferred energy is later spilled, BPA will refund the

charges paid under section F.1. in an amount equal to the the charges

paid under such section, divided by the kilowatthours of energy

delivered to BPA, multiplied by the kilowatt hours of stored energy

that is spilled.

G. Transfers To Avoid Spill

1. No charge for stored energy transferred by a Reservoir Party to

BPA in order to avoid spill.

2. The applicable Stored Energy Service charge shall apply in the

event that BPA accepts the transfer of stored energy to avoid spill and

then returns the stored energy to the original delivering party.

H. Transmission Service Charges

In any energy or capacity transaction that utilizes BPA

transmission facilities where BPA acts solely as a transferor the

following charges shall apply to both delivery and return of the

energy, if applicable:

1. 1.60 mills per kilowatthour of Interchange Energy paid by the

receiving party.

2. 1.75 mills per kilowatthour of Holding Interchange and Storage

Energy paid by the party requesting the return.

3. No charge for In Lieu Energy, except when the supplying or

receiving party requires BPA, under the terms of the PNCA, to provide

transmission, in which case the charge shall be 2.00 mills per

kilowatthour of In Lieu Energy paid by the party requiring BPA to

provide such transmission.

4. 2.00 mills per kilowatthour of Provisional Energy paid by the

Reservoir Party.

5. 2.00 mills per kilowatthour of energy associated with

Interchange Capacity and FOR Capacity paid by the party requesting the

delivery.

I. Special Storage Arrangements

1. Minimum Rate

a. 1.00 mills per kilowatthour for energy returned during Light

Load Hours.

b. 3.00 mills per kilowatthour for energy returned at other hours.

2. Flexible Rate

The charges for special storage arrangements may be specified at a

higher rate as mutually agreed between the party requesting the special

storage arrangement and BPA.

III. Transmission Terms and Conditions

The following three comparable network transmission service tariffs

are being released on a preliminary basis. They indicate how BPA would

apply the three types of service tariffs developed by FERC's Litigation

Staff to the BPA network. BPA and its customers are continuing their

discussions aimed at mutual agreement on comparable network service

which may be different from the following. BPA's will publish and

submit its final comparable network service proposals pursuant to the

schedule developed at the Prehearing/Settlement Conference.

Proposed Bonneville Power Administration Network Integration Service

Tariff Table of Contents

1. Definitions

1.1 Annual Transmission Costs

1.2 Application

1.3 Bonneville Service Area

1.4 Commission

1.5 Control Area

1.6 Control Area Services (or Ancillary Control Area Services)

1.7 Customer

1.8 Customer Electric System

1.9 Direct Assignment Facilities

1.10 Effective Date

1.11 Eligible Customer

1.12 Facilities Study

1.13 Good Utility Practice

1.14 Load Ratio Share

1.15 Member System

1.16 Native Load Customers

1.17 Network Load

1.18 Network Operating Agreement

1.19 Network Resources

1.20 Network Transmission System

1.21 Network Upgrade

1.22 Opportunity Costs

1.23 Service Agreement

1.24 System Impact Study

2. Nature of Network Integration Service

2.1 Scope of Service

2.2 Firm Service

2.3 Nonfirm Service

2.4 Restrictions on Use of Service

2.5 Bonneville Right to Displace

3. Availability of Network Integration Service

3.1 General Conditions

3.2 Control Area Requirement

3.3 Bonneville Responsibilities

3.4 Customer Redispatch Obligation

4. Initiating Service

4.1 Conditions Precedent for Receiving Service

4.2 Application Procedures

4.3 Insufficient Capacity

4.4 Direct Assignment Facilities

4.5 Queue Priority

4.6 Technical Arrangements to be Completed Prior to

Commencement of Service

4.7 Customer Facilities

4.8 Termination of Service

5. Network Resources

5.1 Designation of Network Resources

5.2 Operation of Network Resources

5.3 Transmission Arrangements for Network Resources Located

Outside the Bonneville Control Area

5.4 Designation of New Network Resources

5.5 Reserve Margin Limitation on Designation of Network

Resources

5.6 Customer Owned Transmission Facilities

6. Designation of Member Systems by Customers Receiving Network

Integration Service

6.1 Member Systems

6.2 New Member Systems Connected with Bonneville

6.3 New Member Systems Not Connected with Bonneville

6.4 New Interconnection Points

7. Transmission Facilities or Upgrades Related to Designation of New

Network Resources and Member Systems

7.1 System Impact Study

7.2 Facilities Study

7.3 Due Diligence

7.4 Incremental Transmission Costs Associated with Adding New

Network Resources

7.5 Changes in Service Requests

7.6 Annual Load and Resource Information Updates

8. Ancillary Services

9. Transmission Losses

10. Curtailments

10.1 System Reliability

10.2 Transmission Constraints

10.3 Cost Responsibility for Relieving Capacity Constraints

10.4 Load Curtailments

10.5 Curtailment Procedures

10.6 Curtailment Allocations

11. Rates and Charges

12. Billing and Payment

13. Booking of Costs Attributable to Bonneville

14. Indemnification and Liability

14.1 Western Interconnected Systems Agreement

14.2 No Western Interconnected Systems Agreement

14.3 Uncontrollable Forces

15. Regulatory Filings

16. Operating Arrangements

16.1 Operation of the Customer Control Area

16.2 Network Operating Agreement

17. Network Operating Committee

18. Procedures to Resolve Transmission Complaints

19. Creditworthiness

Proposed Network Integration Service Tariff

Bonneville will provide Network Integration Service to Eligible

Customers pursuant to the terms and conditions of this Tariff.

1. Definitions

1.1 Annual Transmission Costs

The total annual cost of the Network Transmission System shall be

the amount specified in the Network Integration Transmission Rate

Schedule (NT-95) or its successor.

1.2 Application

A written request for Network Integration Service satisfying the

provisions of this Tariff. [[Page 12917]]

1.3 Bonneville Service Area

The area consisting of the States of Oregon, Washington, and Idaho;

the portion of the State of Montana west of the Continental Divide, and

such portions of the States of Nevada, Utah, and Wyoming as are within

the Columbia River drainage basin; and any contiguous areas, not in

excess of 75 air miles from the just described area, which are a part

of the service area of a rural electric cooperative customer served by

Bonneville on the effective date of this Tariff which has a

distribution system from which it serves both within and without such

area.

1.4 Commission

The Federal Energy Regulatory Commission (FERC) or any successor

Federal agency having regulatory jurisdiction over this Tariff.

1.5 Control Area

The set of generating units, electrical loads, and transmission

facilities managed and overseen by a utility that is responsible for

matching its generation and loads on an instantaneous basis.

1.6 Control Area Services (or Ancillary Control Area Services)

Any functions, practices, or services required by North American

Electric Reliability Council (NERC), Western Systems Coordinating

Council (WSCC), Northwest Power Pool (NWPP), or Bonneville Reliability

Criteria and Standards (BRCS) for the safe and reliable operation of a

Control Area and the connection of loads and resources to a Control

Area.

1.7 Customer

An Eligible Customer that has executed a Service Agreement for

Network Integration Service pursuant to this Tariff.

1.8 Customer Electric System

The electric system operated by a Customer to serve its Network

Load in accordance with the terms of this Agreement and applicable

reliability and operating criteria.

1.9 Direct Assignment Facilities

Transmission facilities which are not an integral part of, and do

not support, the Network Transmission System and that are constructed

by Bonneville to satisfy an Application under this Tariff, the addition

of a new Member System, or addition of a new Network Resource and the

costs of which Bonneville may recover directly from the Customer as

provided in the NT-95 Rate Schedule or its successor.

1.10 Effective Date

The date upon which the Parties execute a Service Agreement in

accordance with the terms and conditions of this Tariff.

1.11 Eligible Customer

A private or public corporation, governmental agency or authority,

joint action agency, municipality, rural electric membership

corporation or cooperative, person, or any lawful association of the

foregoing which engages in the generation, transmission or distribution

of electric energy at wholesale or retail and which will rely upon

Bonneville's Network Transmission System to integrate effectively its

Network Load and Network Resources. Bonneville's direct service

industrial customers on the effective date of this Tariff shall be

considered Eligible Customers. Other than Bonneville's direct service

industrial customers, an Eligible Customer shall not include any entity

for which the Commission is prohibited under sections 212(g) and (h) of

the Federal Power Act (FPA) from ordering the provision of transmission

service. An entity shall be an Eligible Customer only to the extent

that it requests service to integrate some or all of the Network Loads

of Eligible Customer(s) and a comparable amount of resources that have

been designated Network Resources of such Eligible Customer(s).

1.12 Facilities Study

An engineering study conducted by Bonneville to determine the

required modifications to Bonneville's Transmission System, including

the cost and scheduled completion date for such modifications, which

may be required in order to provide a requested Network Integration

Service, to add a new Network Customer, to add a new Member System, or

to add a Network Resource.

1.13 Good Utility Practice

Any of the practices, methods, and acts engaged in or approved by a

significant portion of the electric utility industry during the

relevant time period, or any of the practices, methods, and acts which,

in the exercise of reasonable judgment in light of the facts known at

the time the decision was made, could have been expected to accomplish

the desired result at the lowest reasonable cost consistent with good

business practices, reliability, safety, and expedition. Good Utility

Practice is not intended to be limited to the optimum practice, method,

or act, to the exclusion of all others, but rather to be a range of

acceptable practices, methods, or acts.

1.14 Load Ratio Share

Ratio of a Customer's Network Load to Bonneville total load

computed in accordance with the NT-95 Rate Schedule or its successor.

1.15 Member System

An Eligible Customer operating as a part of a lawful combination,

partnership, association, or joint action agency composed exclusively

of Eligible Customers.

1.16 Native Load Customers

Those wholesale and direct service industrial power sales customers

on whose behalf Bonneville, by statute or contract, has an obligation

to plan, construct and operate its system to provide reliable electric

service.

1.17 Network Load

The designated load of a Customer in Bonneville's Service Area,

including the entire load of all Member Systems designated pursuant to

section 6. A Customer's Network Load shall not be reduced to reflect

any portion of such load served by the output of any generating

facilities owned, or generation purchased, by the Customer or its

Member Systems.

1.18 Network Operating Agreement

An agreement that provides the technical and engineering provisions

necessary to establish and operate a Customer Control Area utilizing

Bonneville's Network Transmission System.

1.19 Network Resources

Designated non-Federal resources used by a Customer to provide

electric service to its Network Load consistent with reliability

criteria generally accepted in the region. Network Resources shall

include all owned and purchased Customer non-Federal generating

resources that are located in the Bonneville Control Area or connected

to the Electric System of such Customer or any Member System. A

Customer also may designate as Network Resources any non-Federal

generating resources (or portion thereof) located in another utility's

Control Area and power purchased by the Customer from another utility

and used to provide reliable service to Network Load. Network Resources

shall not include that portion of the capacity of any such generating

resource that is committed on a firm basis for sale to third parties.

[[Page 12918]]

1.20 Network Transmission System

The transmission facilities owned and/or operated by Bonneville

excluding interties and generation integration facilities.

1.21 Network Upgrade

Upgrades to transmission facilities that are integrated with and

support Bonneville's Network Transmission System and which are

constructed by Bonneville to satisfy, at least in part, an Application,

the addition of a new Member System, or the addition of a new Network

Resource and the costs of which Bonneville may recover directly from

the Customer as provided in the NT-95 Rate Schedule or its successor.

1.22 Opportunity Costs

Net loss of revenue or the net increase in generation cost caused

by displacing one transaction with another when the transmission system

is so constrained that both transactions cannot be handled at the same

time. Opportunity costs do not include any loss of revenues resulting

from competition or foregone revenues from purchase and resale

transactions to serve other than Native Load Customer or Network Load.

1.23 Service Agreement

The initial agreement and amendments thereto between Bonneville and

a Customer for Network Integration Service under this Tariff.

1.24 System Impact Study

An assessment by Bonneville of: (i) the adequacy of the Network

Transmission System to accommodate a request for Network Integration

Service; and/or (ii) the incremental new facilities or upgrades that

would be needed by Bonneville in providing such service pursuant to the

terms of this Tariff.

2. Nature of Network Integration Service

2.1 Scope of Service

Network Integration Service is a transmission service that allows

Customers to efficiently and economically utilize their Network

Resources and other generation resources to serve their Network Load

located in Bonneville's Service Area. Network Integration Service

requires the Customer to provide, or purchase from Bonneville, certain

Ancillary Control Area Services. Bonneville will offer these Ancillary

Control Area Services, pursuant to an appropriate service agreement, on

a nondiscriminatory basis to any Customer required hereunder to

purchase or provide such services as a precondition to receiving

Network Service.

In the event that Bonneville provides a credit for the cost of

certain Customer-owned transmission facilities pursuant to section 5.6,

Bonneville shall be entitled to use such facilities, at no additional

charge, to provide the same scope of services for its Native Load

Customers and its Network Integration Service Customers, as those

services made available to the Customer pursuant to this Tariff. In the

absence of such a credit, Bonneville shall be entitled to such service

pursuant to a FERC-approved tariff that provides service comparable to

that which the Customer provides for its own load.

2.2 Firm Service

A Customer shall have the right to use this Tariff for the delivery

of power from Network Resources to Network Loads on a basis that is

comparable to Bonneville's use of its Network Transmission System to

reliably serve its Native Load Customers. Except as otherwise provided

in section 2.5, service over Bonneville's Network Transmission System

for the delivery of power from Network Resources to Network Load shall

have priority over all nonfirm uses of Bonneville's Network

Transmission System by Bonneville or third parties.

2.3 Nonfirm Service

A Customer also may use this Tariff to deliver energy to its

Network Loads from resources that have not been designated as Network

Resources. Such deliveries shall be on a nonfirm basis, subject to

available capacity, but on an equal basis with Bonneville's use of

economy energy to service Native Load Customers, subject to section 2.5

below, and at no additional transmission charge. Curtailments of

nonfirm service shall be governed by section 10 and shall be

implemented on a nondiscriminatory basis among all other nonfirm uses

of Bonneville's Network Transmission System, including Bonneville's

nonfirm uses of the system, except where such service is displaced

pursuant to section 2.5 below.

2.4 Restrictions on Use of Service

Network Integration Service shall not be used for: (i) wholesale

sales of capacity or energy by the Customer or its Member Systems to

third parties; or (ii) directly or indirectly providing transmission

service by the Customer to third parties. An Eligible Customer may not

receive service pursuant to more than one service agreement that

applies this Tariff during any billing period.

2.5 Bonneville Right to Displace

Bonneville shall have the right to displace Customer Network

Resources and nonfirm purchases, at a cost which keeps the Customer

whole, in the event of a transmission bottleneck to the extent that

such displacement reduces the bottleneck, if Bonneville finds it

necessary in order to avoid spill on the Federal power system or on the

systems of Network Integration Service Customers.

3. Availability of Network Integration Service

3.1 General Conditions

In accordance with the provisions of this Tariff, Network

Integration Service shall be provided by Bonneville to allow a Customer

to integrate, plan, economically dispatch, and regulate designated

Network Resources to serve the Customer's consolidated Network Load,

via Bonneville's Network Transmission System, as a single Control Area

in the same manner that Bonneville performs those functions for

Bonneville's Native Load Customers.

3.2 Control Area Requirement

As a condition of obtaining Network Integration Service, the

Customer shall: (i) operate as a Control Area under applicable

guidelines of the NERC, the WSCC, the NWPP, and BRCS; or (ii) satisfy

its responsibility to be operated as a Control Area by contract with

Bonneville; or (iii) by contract with another entity which Bonneville

accepts as sufficient to satisfy NERC, WSCC, NWPP, and BRCS

requirements. Bonneville shall not unreasonably refuse to accept

contractual arrangements with another entity for such service.

3.3 Bonneville Responsibilities

Bonneville shall plan, construct, operate, and maintain its Network

Transmission System in accordance with Good Utility Practice in order

to provide the Customer with Network Integration Service within and

across Bonneville's Control Area in accordance with this Tariff.

Bonneville shall include the Customer's Network Load in its

transmission system planning and shall, consistent with Good Utility

Practice, endeavor to construct and place into service sufficient

transmission capacity to deliver the Customer's Network Resources to

serve Network Load on a basis comparable to Bonneville's delivery of

its own generating and purchased resources to Bonneville's Native Load

Customers. If the Customer meets its Control Area responsibilities

without placing its [[Page 12919]] loads and resources in Bonneville's

Control Area, power scheduling will be provided consistent with normal

utility practices for scheduling power between Control Areas.

3.4 Customer Redispatch Obligation

As a condition of receiving Network Integration Service, a Customer

agrees to redispatch its Network and other resources as requested by

Bonneville to create additional firm transmission capacity on

Bonneville's Network Transmission System to allow Bonneville to provide

new firm transmission service. Whenever a Customer redispatches its

Network and other resources pursuant to this section it shall be

compensated by Bonneville for the Opportunity Costs it incurs. To the

extent practicable, the redispatch of resources pursuant to this

section shall be on a least cost, nondiscriminatory basis as between

all Network Integration Customers and Bonneville. The Customer shall be

compensated for redispatching resources pursuant to the NT Rate

Schedule or its successor.

4. Initiating Service

4.1 Conditions Precedent for Receiving Service

Subject to the terms and conditions of this Tariff, Bonneville

shall provide Network Integration Service within Bonneville's Service

Area to any Eligible Customer, provided that: (i) the Eligible Customer

has completed an Application for Network Integration Service as

provided under this Tariff; (ii) the Eligible Customer and Bonneville

have completed the technical arrangements set forth in section 4.6

below; and (iii) the Eligible Customer has executed a Service

Agreement.

4.2 Application Procedures

An Eligible Customer requesting service under this Tariff must

submit a written Application to: Bonneville Power Administration,

Attention: Manager, Transmission Business, P.O. Box 3621; Portland,

Oregon, 97208-3621 as far as possible in advance of the calendar month

in which service is to commence. A completed Application shall provide

all of the following information:

(i) The identity, address, and telephone number of the party

requesting service and of the party's designated contact person.

(ii) A statement that the party requesting service is, or will be

upon commencement of service, an Eligible Customer under this Tariff.

(iii) A description of the Network Load (subdivided into the load

of any Member Systems whose loads are designated as Network Load). This

description should separately identify and provide the Eligible

Customer's best estimate of the total loads to be served at each

transmission voltage level, and the loads to be served from each

Bonneville substation at the same transmission voltage level. The

description should include a 10-year forecast of summer and winter load

and resource requirements beginning with the first year after the

Effective Date.

(iv) The amount and location of any interruptible loads included in

the Network load. This shall include the summer and winter capacity

requirements for each interruptible load (had such load not been

curtailed), that portion of the load subject to curtailment, the

conditions under which a curtailment can be implemented and any

limitations of the amount and frequency of curtailments. An Eligible

Customer should identify the amount of curtailed customer load (if any)

included in the 10-year load forecast provided in response to (iii)

above.

(v) A description of Network Resources (current and 10-year

projection), which shall include, for each Network Resource: Data on

the Eligible Customer's Network Resource characteristics in an

appropriate dynamic data format (PSS/E or WSCC). Unit size and amount

of capacity from that unit to be designated as Network Resource:

--Var capability of all generators

--Operating restrictions

--Any periods of restricted operations throughout the year

--Minimum loading level of unit

--Normal operating level of unit

--Any must-run unit designations required for system reliability or

contract reasons

--Approximate variable generating cost ($/megawatthour) for redispatch

computations.

--Arrangements governing sale and delivery of power to third parties

from generating facilities located in the Bonneville control area,

where only a portion of unit output is designated as a Network

Resource.

--Description of purchased power designated as a Network Resource,

including source of supply, Control Area location, transmission

arrangements, and delivery point(s) to the Bonneville Network

Transmission System.

(vi) Description of Eligible Customer's Transmission System:

--Data on the Eligible Customer's transmission system characteristics

in an appropriate load flow format (PSS/E, or WSCC).

--Description of all lines and transformers operated at 50 kilovolt and

higher

--Operating restrictions needed for reliability

--Operating guides employed by system operators

--Contractual restrictions or committed uses of the Eligible Customer's

Transmission System, other than the Eligible Customer's Network Loads

and Resources

--Location of Network Resources described in section 4.2(v)

--Ten (10)-year projection of system expansions or upgrades

--Transmission system maps that include any proposed expansions or

upgrades

--Thermal ratings of Eligible Customer's Control Area transmission

facilities

(vii) Service commencement date and the term of the requested

Network Integration Service:

If an Application fails to meet the requirements of this Tariff,

Bonneville shall notify the Eligible Customer requesting service within

10 days of receipt and specify the reasons for such failure. Whenever

possible Bonneville shall attempt to remedy minor deficiencies in the

Application through informal communications with the Eligible Customer.

4.3 Insufficient Capacity

In the event that there is insufficient capacity to initially meet

the request, Bonneville shall offer, at Customer's expense, to make

sufficient capacity available through construction, redispatch or by

otherwise rearranging its own use of the Network Transmission System.

4.4 Direct Assignment Facilities

At the Customer's request, when required to make deliveries

hereunder, Bonneville shall also provide Direct Assignment Facilities

provided that the Customer agrees to pay for such Direct Assignment

Facilities. The Customer shall pay Bonneville for such facilities in

accordance with the applicable rate schedule.

4.5 Queue Priority

Applications for Network Integration Service or requests to add

service for new Network Resources or new Member Systems, along with

applications for other Bonneville firm transmission services, will be

assigned a priority according to the date on which the application is

received, with the earliest application receiving the highest priority.

[[Page 12920]]

4.6 Technical Arrangements to be Completed Prior to Commencement of

Service

Service under this Tariff shall not commence until Bonneville and

the Customer, or a third party which has contracted to provide Control

Area Services, have installed all metering facilities, remote terminal

units, communications equipment, and associated equipment necessary to

ensure that the Customer's Network Loads and Network Resources operate

in a Control Area that is consistent with NERC, WSCC, NWPP, and BRCS

guidelines and any additional requirements reasonably and consistently

imposed to ensure the reliable operation of the Network Transmission

System. Bonneville shall exercise reasonable efforts, in coordination

with the Customer, to complete such arrangements as soon as practical

after the Effective Date.

4.7 Customer Facilities

Bonneville's provision of Network Integration Service shall be

conditioned upon the Customer's constructing, maintaining, and

operating the facilities on its side of each point of interconnection

that are necessary to reliably interconnect and deliver power from the

Network Transmission System to the Customer and/or its Member Systems.

The Customer shall be solely responsible for constructing and/or

installing and operating any incremental facilities on the Customer's

side of each such interconnection point.

4.8 Termination of Service

A Customer may terminate service under this Tariff no earlier than

2 years after providing Bonneville with written notice of the

Customer's intention to terminate. A Customer's provision of notice to

terminate service under this Tariff shall not relieve the Customer of

its obligation to pay Bonneville any rates, charges, or fees, including

charges related to the construction of incremental facilities, for

service previously provided under the applicable Service Agreement or

the Network Operating Agreement, and which are owed to Bonneville as of

the date of termination.

5. Network Resources

5.1 Designation of Network Resources

All of the owned and/or purchased resources that were serving such

Customer's or its Member Systems' Network Loads under firm agreements

entered into on or before the Effective Date shall be designated as

Network Resources as of the Effective Date. A Customer may terminate

the designation of a generating resource located within Bonneville's or

the Customer's Control Area as a Network Resource if the Customer

provides 30 days' written notification to Bonneville that the

terminated resource will not be operated to serve any portion of the

Customer's Network Load for the time period that such resource is not

designated as a Network Resource. The Customer may later redesignate

the resource as a Network Resource in accordance with the provision of

section 5.4. The Customer also may terminate the designation of all or

part of a generating resource not located within the Control Area of

Bonneville or the Customer as a Network Resource upon 30 days' notice

to Bonneville. If the Customer has committed to make a firm system sale

(to a third party) using a portion of the capacity of more than one

Network Resource, Bonneville will treat each Network Resource as making

a representative portion of such capacity sale based on the likely

loadings of each generating resource that will occur under

representative system conditions (e.g., off-peak and on-peak).

5.2 Operation of Network Resources

A Customer shall not operate any of its generating facilities

located in the Customer's or Bonneville's Control Areas such that the

output of those facilities exceeds the sum of: (i) the capacity from

those facilities that have been designated as Network Resources plus;

(ii) the amount of power from those facilities scheduled for delivery

to a third party. When a Customer sells power or energy from a Network

Resource located within Bonneville's Control Area, the Customer shall

arrange transmission service under the applicable Bonneville

Transmission Service Tariff.

5.3 Transmission Arrangements for Network Resources Located Outside

the Bonneville Control Area

It shall be the Customer's responsibility to make any transmission

arrangements necessary for delivery of power produced from a Network

Resource located outside the Bonneville Control Area to the Network

Transmission System. If a Customer designates as a Network Resource

less than the full amount of the maximum net dependable capability of a

generating resource located within the Control Area of another utility,

the Customer may request Bonneville to supply other transmission

service for that portion of the maximum net dependable capability of

the generating resource which is not designated as a Network Resource.

5.4 Designation of New Network Resources

A Customer may request the designation of a new Network Resource by

providing Bonneville with as much advance written notice as

practicable, but not less than 60 days. Bonneville must satisfy the

requirements of applicable environmental statutes prior to committing

to the additional service. In determining whether the Customer has

provided sufficient notice for Bonneville to provide firm service from

a newly designated Network Resource, Bonneville shall apply the same

standards as it would apply to its own newly designated resources.

Where a Customer proposes to substitute a new Network Resource for an

existing Network Resource, Bonneville shall not unreasonably withhold

agreement where agreement would impose no economic, technical, or

unacceptable environmental burdens on Bonneville. To the extent

insufficient notice is provided for Bonneville to construct

transmission facilities or upgrades determined in accordance with

section 7 as necessary for delivery of a new Network Resource to the

Customer's Network Load, Bonneville shall not be obligated to deliver

power from such Network Resource pursuant to this Tariff until all

needed facilities or upgrades are completed and all environmental

responsibilities have been satisfied. Notice of a Customer's intent to

designate a new Network Resource shall include sufficient engineering,

and technical information to permit Bonneville to perform a System

Impact Study addressing the transmission requirements associated with

delivery of such new Network Resource to the Customer's Network Load as

set forth in section 4.2.

5.5 Reserve Margin Limitation on Designation of Network Resources

A Customer shall designate an amount (in MW) of Network Resources

that enables the Customer to operate the Customer Control Area with an

installed reserve margin not to exceed 25 percent of the Customer's

reasonably forecasted consolidated Network Load. Once the designation

of a Network Resource becomes effective, the Customer shall not be

penalized if reasonably forecasted loads do not materialize. A Customer

may designate a new Network Resource that would cause it to exceed the

reserve margin limitation so long as the addition of such resource

would be consistent with the Customer's obligations to serve its

Network Load in [[Page 12921]] accordance with Good Utility Practice

and the Customer reasonably forecasts that its projected installed

reserve margin will be in compliance with this reserve criterion within

3 years of the date on which such new Network Resource becomes

operational.

Bonneville shall provide an exemption from the 25 percent reserve

margin limitation if the Customer demonstrates that it must maintain a

higher level of reserves to operate reliably under NERC, WSCC, NWPP,

and BRCS guidelines and that it has undertaken reasonable efforts to

procure coordination services (such as reserve sharing) that would

reduce its required level of reserves. If an exemption applies, the

Customer may designate an amount of Network Resources equal to the

amount necessary to operate reliably under the above referenced

guidelines.

Bonneville is subject to the above referenced requirements in

determining the resources it needs to operate reliably. Bonneville may

not maintain a reserve margin in excess of that permitted any Network

Customer under this Tariff. Each year, Bonneville submits to WSCC a 10-

year resource plan indicating the generating resources Bonneville will

use to operate reliably under regional and national reliability

standards. This plan shall be made available to the Customer upon

request.

5.6 Customer Owned Transmission Facilities

The Customer will be entitled to receive a Customer Facilities

Credit as defined in the NT-95 Rate Schedule or its successors if

transmission facilities as described in such rate schedule are made

available for use under this Tariff.

6. Designation of Member Systems for Customers Receiving Network

Integration Service

6.1 Member Systems

A Customer may designate the individual Member Systems that will be

included in the Customer Control Area and on whose behalf Bonneville

shall provide Network Integration Service. The Member Systems as of the

Effective Date shall be specified in the Service Agreement.

6.2 New Member Systems Connected With Bonneville

A Customer shall provide Bonneville with as much written notice as

reasonably practicable of the designation of additional entities that

will be added to its Control Area as new Member Systems. Bonneville

shall provide Network Integration Service for any such new Member

System, provided that: (i) Bonneville reasonably determines in

accordance with section 7 that the Network Transmission System can

reliably accommodate such new Member System; and (ii) the Customer

agrees to pay the costs of any incremental transmission facilities

upgrades that Bonneville reasonably determines must be installed to

interconnect reliably such new Member System with the Bonneville

Network Transmission System. The engineering and technical

specifications for any such new interconnection shall be set forth in

an amendment to the Service Agreement under the Tariff. Until such

incremental facilities are completed, Bonneville shall agree to provide

Network Integration Service out of existing transmission capacity,

pursuant to the prioritization described in section 4.5 above, to the

extent such service would not impair the reliability of service to

Native Load Customers, firm transmission service customers, and other

Network Service Customers. In addition if the Customer so elects, to

the extent the requested service can be provided in whole or in part by

redispatching the system, the Customer shall be assigned the

incremental costs caused by the redispatch.

6.3 New Member Systems Not Connected with Bonneville

To the extent that a Customer desires to obtain transmission

service for a Member System that is not connected to the Network

Transmission System, the Customer shall have the option of: (i)

electing to include such Member System in the Customer Control Area by

including the entire load of that Member System as Network Load for all

purposes under this Tariff and designating Network Resources in

connection with such additional Network Load; or (ii) excluding the

load of that Member System from its Network Load and purchasing Point-

to-Point Transmission for power transfers between the Customer's

Control Area and the new Member System not connected to Bonneville's

system. Transmission across third-party systems is not covered by this

Tariff. To the extent that a Customer gives notice of its intent to add

a new Member System pursuant to this section and sufficient capacity is

not available on the Network Transmission System to provide the

requested service pursuant to the prioritization described in section

4.5 above, without impairing reliability to Bonneville's Native Load

Customers and other firm uses of the system, the Customer shall be

charged for the cost of any incremental facilities determined necessary

by Bonneville to provide Network Integration Service. In addition, if

the Customer so elects, to the extent the requested service can be

provided in whole or in part by redispatching the system, the Customer

shall be assigned the incremental costs caused by the redispatch.

Bonneville shall be responsible for the cost of any incremental

facilities or system redispatch costs associated with adding new

resources to serve its Native Load Customers, as provided in section 7.

6.4 New Interconnection Points

To the extent a Customer desires to add a newly constructed

interconnection point between the Network Transmission System and a

Member System, the Customer shall provide Bonneville with as much

written notice as reasonably practicable; however, Bonneville shall not

be obligated to provide additional service with respect to such

interconnection point until such new interconnection is established.

Bonneville shall add such new interconnection point provided that

Bonneville reasonably determines that the Bonneville Network

Transmission System can reliably accommodate such new interconnection

point. The Customer shall be responsible for the costs of any

incremental facilities associated with such new interconnection. The

engineering and technical specifications for such new interconnection

point shall be set forth in a separate interconnection agreement to be

negotiated by the Parties.

7. Transmission Facilities or Upgrades Related to Designation of New

Network Resources and Member System

7.1 System Impact Study

Once a Customer provides Bonneville with notice of its intent to

designate a new Network Resource pursuant to section 5.4 or a new

Member System pursuant to section 6, Bonneville and the Customer shall

execute an agreement under which Bonneville shall perform a System

Impact Study to determine the incremental transmission facilities, if

any, attributable to integrating such new Network Resource or new

Member System into Bonneville's Network Transmission System. In

performing the System Impact Study, Bonneville shall apply the same

methods and criteria that it employs in integrating new owned or

purchased resources acquired by Bonneville to serve Bonneville's Native

Load Customers. Bonneville shall complete the System Impact Study

within 60 days or will provide the Customer a written explanation of

when [[Page 12922]] the study will be completed and the reasons for the

delay. A Customer shall be responsible for the cost of the System

Impact Study and shall be provided with the results thereof, including

relevant workpapers.

7.2 Facilities Study

Based on the results of the System Impact Study, Bonneville also

may perform, pursuant to a separate agreement with the Customer, a

Facilities Study addressing the detailed engineering, design, and cost

of incremental transmission facilities. The Facilities Study shall be

completed as soon as reasonably practicable and will be used by

Bonneville to provide the Customer with an estimate of the cost for

constructing incremental facilities. The Customer shall be responsible

for the costs of the Facilities Study and shall be provided with the

results thereof, including relevant workpapers. Bonneville shall be

responsible for the costs of any Facilities Study undertaken to

determine the costs of adding incremental facilities associated with

Bonneville's addition of new owned or purchased resources used to serve

Bonneville's load.

7.3 Due Diligence

Bonneville shall use due diligence to install any transmission

facilities required to integrate a new Network Resource or to

interconnect a new Member System designated by the Customer in

accordance with section 6.3.

7.4 Incremental Transmission Costs Associated With Adding New Network

Resources and New Member Systems

After the Effective Date, Customer and Bonneville each shall be

responsible for the incremental transmission facility costs associated

with integration of new Network Resources, new Member Systems and new

Native Load Customers. The costs of any such incremental facilities

directly assigned to Bonneville or the Customer shall not be included

in the calculation of Bonneville's Annual Transmission Costs. The costs

of such facilities shall be determined in a formal Bonneville rate

hearing pursuant to section 7(i) of the Northwest Power Act. Any

incremental facilities costs assigned to the Customer shall be

reflected in an amendment to the Service Agreement.

7.5 Changes in Service Requests

Under no circumstances shall a Customer's decision to cancel or

delay the addition of a new Network Resource and/or designation of a

new Member System in any way reduce or relieve the Customer's

obligation to pay the costs of any incremental facilities constructed

by Bonneville and charged to the Customer pursuant to this section;

provided, however, that upon receipt of a Customer's written notice of

such a cancellation or delay, Bonneville shall use the same reasonable

efforts to mitigate the costs and charges owed to Bonneville as it

would to reduce its own costs and charges.

7.6 Annual Load and Resource Information Updates

A Customer shall provide Bonneville with annual updates of Network

Load and Network Resource forecasts consistent with those included in

its Application for Network Integration Service under this Tariff. The

Customer also shall provide Bonneville with timely written notice of

material changes in any other information provided in its Application

relating to the Customer's Network Load, Network Resources, its

transmission system, or other aspects of its facilities or operations

affecting Bonneville's ability to provide reliable service under this

Tariff.

8. Ancillary Services

A customer may purchase the ancillary services necessary for

prudent utility operations from Bonneville or from another supplier

where the purchase is technically feasible and consistent with NERC and

WSCC requirements.

9. Transmission Losses

Transmission losses shall be determined on the basis of average

estimated system losses. The Customer shall compensate Bonneville for

losses by either providing additional energy for losses associated with

service pursuant to this Tariff or by buying losses from Bonneville in

accordance with Bonneville's Firm Power Products and Services Rate

Schedule or its successor.

10. Curtailments

10.1 System Reliability

Notwithstanding any other provisions of this Tariff, Bonneville

reserves the right, consistent with Good Utility Practice to curtail

Network Integration Service, without liability on Bonneville's part, to

make necessary adjustments to, changes in, or repairs on its lines,

substations, and facilities, and in cases where the continuance of

Network Integration Service would endanger persons or property. In the

event of any adverse condition(s) or disturbance(s) on the Bonneville

system or on any other system(s) directly or indirectly interconnected

with the Bonneville system, Bonneville, consistent with Good Utility

Practice, also may curtail Network Integration Service in order to: (i)

limit the extent or damage of the adverse condition(s) or

disturbance(s); (ii) prevent damage to generating or transmission

facilities; or (iii) expedite restoration of service. Bonneville shall

give Customers as much advance notice as is practicable in the event of

such curtailments. Any curtailments of Network Integration Service will

be not unduly discriminatory relative to Bonneville's use of the

Network Transmission System on behalf of its Native Load Customers.

10.2 Transmission Constraints

During any period when Bonneville determines that a transmission

constraint exists on the Network Transmission System, and such

constraint may impair the reliability of the Bonneville system,

Bonneville shall take whatever actions, consistent with Good Utility

Practice, that are reasonably necessary to maintain the reliability of

the Bonneville system and to avoid curtailment of service. To the

extent Bonneville determines that the reliability of the Network

Transmission System can be maintained by redispatching resources

(including reductions in off-system purchases and sales), Bonneville

shall initiate procedures pursuant to the Network Operating Agreement

or pursuant to provisions in individual service agreements to

redispatch Bonneville's and its Customers' resources on a least-cost

basis without regard to the ownership of such resources. To the extent

and for the duration that it is determined necessary to relieve a

transmission constraint to reliably serve Bonneville Native Load

Customers and a Customer's Network Load, Bonneville and its Customers

shall be required to redispatch their resources (including reducing

purchases and sales), in accordance with the least-cost redispatch

procedures implemented by Bonneville pursuant to the Network Operating

Agreement or other agreement. Any redispatch under this section shall

not be unduly discriminatory as between Bonneville and its Customers.

To the extent reasonable, practicable, and consistent with Good Utility

Practice, Bonneville shall curtail, on a pro rata basis, all similarly

situated uses (e.g., nonfirm uses would be curtailed first, and then

firm uses) that are affected by the emergency. [[Page 12923]]

10.3 Cost Responsibility for Relieving Capacity Constraints

Whenever Bonneville implements least-cost redispatch procedures to

relieve a capacity constraint, Bonneville shall determine the total

Opportunity Cost impact of such procedures. Bonneville and its

Customers shall each bear a proportionate share of the total redispatch

cost impact based on the then-current Load Ratio Shares or as otherwise

agreed.

10.4 Load Curtailments

To the extent that a transmission constraint on the Bonneville

transmission system cannot be relieved through the implementation of

least-cost redispatch procedures and Bonneville determines that it is

necessary for Bonneville and the Customer to curtail load, the parties

shall curtail such load as discussed below.

10.5 Curtailment Procedures

Prior to the Effective Date, and as a precondition to the

commencement of service hereunder, Bonneville and the Customer shall

discuss emergency programs for the curtailment of loads with the

objective of relieving loadings on the Network Transmission System. The

parties shall implement such agreed programs during any period when

Bonneville determines that a transmission capacity constraint exists

and such curtailment of loads is necessary to alleviate such

constraint.

10.6 Curtailment Allocations

To the extent practicable and consistent with Good Utility

Practice, any curtailment shall be shared by Bonneville and its

Customers. Bonneville shall not direct a Customer to curtail load to an

extent greater than Bonneville would curtail Bonneville's Native Load

Customers under similar circumstances. A Customer's failure to

implement such emergency load curtailment programs may be deemed by the

Bonneville to be a default under the service agreements that apply this

Tariff.

11. Rates and Charges

The Customer shall pay for services provided under this Tariff as

provided in rates determined in a formal Bonneville rate hearing

pursuant to section 7(i) of the Northwest Power Act.

12. Billing and Payment

Billing and payment provisions identified in Bonneville's General

Rate Schedule Provisions or successor shall be applicable.

13. Booking of Costs Attributable to Bonneville

Bonneville and the Customer shall keep such records as may be

needed to afford a clear history of all transactions under this Tariff.

The originals of all such records shall be retained for a minimum of 2

years plus the current year (or such longer period as may be required

by any regulatory commission having jurisdiction, and copies shall be

delivered to the other party on request.

14. Indemnification and Liability

14.1 Western Interconnected Systems Agreement

If a Customer is a party to the Western Interconnected Systems

Agreement Limiting Liability, such agreement shall continue in full

force and effect as between the parties to the extent that such

provisions may apply to the transactions contemplated by this Tariff.

14.2 No Western Interconnected Systems Agreement

If a Customer is not a party to the Western Interconnected Systems

Agreement Limiting Liability, and there is no other agreement between

Bonneville and the Customer governing liability and indemnification

between them, then additional provisions for the protection of electric

generation and transmission facilities liability and indemnification

may be required. Such additional provisions shall be set forth in the

Service Agreement.

14.3 Uncontrollable Forces

Bonneville shall not be liable for any claim of damage attributable

to any interruption or reduction of service due to any uncontrollable

force.

15. Regulatory Filings

Nothing contained in this Tariff or any Service Agreement shall be

construed as affecting in any way the right of Bonneville to

unilaterally make application to the Commission for a change in rates

or charges.

Nothing contained in this Tariff or any associated Service

Agreement shall be construed as affecting in any way the ability of any

Customer receiving Network Integration Service under the Tariff to

exercise its rights under the FPA or any successor statute and pursuant

to the Commission's rules and regulations promulgated thereunder.

16. Operating Arrangements

16.1 Operation of the Customer Control Area

A Customer shall plan, construct, operate, and maintain the

Customer Control Area in accordance with Good Utility Practice, which

shall include, but not be limited to, all applicable NERC and WSCC

guidelines, or become part of Bonneville's Control Area or the Control

Area of another utility whose Control Area meets WSCC and NERC

guidelines.

16.2 Network Operating Agreement

The terms and conditions under which the Customer shall operate the

Customer Control Area and the technical and operational matters

associated with the implementation of this Tariff shall be specified in

a separate Network Operating Agreement. The Network Operating Agreement

shall provide for the Parties to: (i) operate and maintain equipment

necessary for incorporating the Customer Control Area within the

Bonneville transmission system (including, but not limited to, remote

terminal units, metering, communication equipment, and relaying

equipment); (ii) transfer data between control centers (including, but

not limited to, heat rates and operational characteristics of Network

Resources, generation schedules for units outside Bonneville's

transmission system, interchange schedules, unit outputs for dispatches

required under section 10, voltage schedules, loss penalty factors, and

other real-time data; (iii) design and implement software programs

required for data links and constraint dispatching; (iv) exchange data

on forecasted loads and resources necessary for long-term planning; and

(v) address any other technical and operational considerations required

for implementation of this Tariff.

17. Network Operating Committee

If needed, a Network Operating Committee (Committee) shall be

established to coordinate operating criteria for the Parties'

respective responsibilities under this Tariff including: (i) standards

for the design, operation, and maintenance of the facilities necessary

to integrate Customer Electric Systems with Bonneville's Transmission

System (including, but not limited to, remote terminal units, metering,

communications equipment, and relaying equipment); (ii) information

transfers between control centers (including, but not limited to,

operational characteristics of Network Resources, generation schedules

for units outside Bonneville's Transmission System, interchange

schedules, unit outputs for dispatch, voltage schedules, loss penalty

factors, and other real-time data); (iii) Software programs required

for data links and constraint dispatching; (iv) information required

[[Page 12924]] for long-term planning; (v) load curtailment procedures

in the event of transmission constraints or system emergencies; (vi)

least-cost redispatch procedures; and (vii) other technical and

operational considerations required for implementation of this Tariff.

Each Customer and Bonneville shall have at least one representative on

the Committee. The Committee may establish such subcommittees as it

deems necessary to carry out its functions. The Committee shall meet

from time to time as need requires, but no less than once each calendar

year, unless other arrangements are mutually agreed upon.

18. Procedures to Resolve Transmission Complaints

Any complaint arising concerning implementation of this Tariff may

be resolved, at the Customer's discretion, by either:

(a) A voluntary dispute resolution process, which may include

mediation or arbitration or both, pursuant to the terms of a regional

transmission association governing agreement, or such other dispute

resolution rules as may be agreed to by Bonneville and the Customer; or

(b) A transmission complaint filed with the Commission.

19. Creditworthiness

For the purpose of determining the ability of the Customer to meet

its obligations related to service hereunder, Bonneville may require

reasonable credit review procedures which may include, but shall not be

limited to, verification that the Customer is not operating under any

State or Federal bankruptcy laws, is not subject to the uncertainty of

pending liquidation or regulatory proceedings in State or Federal

courts, and no significant collection lawsuits or judgments are

outstanding which would seriously reflect upon the Customer's ability,

in Bonneville's determination, to remain solvent. This determination

shall be made in accordance with standard commercial practices. In

addition, Bonneville may require the Customer to provide and maintain

in effect during the term of the Service Agreement, an unconditional

and irrevocable letter of credit as security to meet its

responsibilities and obligations under this Tariff or an alternative

form of security proposed by the Customer and acceptable to Bonneville

that protects Bonneville against the risk of nonpayment. Any disputes

over the terms of such security arrangements shall be subject to the

arbitration provisions of this Tariff.

Proposed Bonneville Power Administration Point-to-Point (PTP) Firm

Network Transmission Service Tariff

Table of Contents

1. Definitions

1.1 Applicant

1.2 Application

1.3 Commission

1.4 Control Area

1.5 Customer

1.6 Delivering Party

1.7 Direct Assignment Facilities

1.8 Effective Date

1.9 Eligible Customer

1.10 Good Utility Practice

1.11 Incremental Cost

1.12 Native Load Customers

1.13 Network PTP Transmission Facilities

1.14 Network PTP Transmission Service

1.15 Network Upgrade

1.16 Opportunity Costs

1.17 Point(s) of Delivery

1.18 Point(s) of Interconnection

1.19 Receiving Party

1.20 Reservation Charge

1.21 Service Agreement

1.22 Study Agreement

1.23 System Impact Study

1.24 Transmission Demand

2. Character and Availability of Service

2.1 Nature of Service

2.2 Term of Service

2.3 Service Agreement Requirements

2.4 Control Area Requirements

2.5 Ancillary Services

3. Interconnection and Interchange

3.1 Designation of Transmission Demand, Point(s) of

Interconnection, and Point(s) of Delivery

3.2 Bonneville Responsibility

3.3 Metering

3.4 Third Party Arrangements

4. Rates

4.1 Transmission Charge

4.2 Dual Transmission Charge

4.3 Direct Assignment Facilities

4.4 Termination Charge

4.5 Reservation Charge

4.6 Transmission Losses

4.7 Reactive Charge

4.8 Control Area Services Charge

4.9 Revision to Rates, Charges, and Loss Factors

4.10 Commencement of Service

5. Initiating Service

5.1 Conditions Precedent for Receiving Service

5.2 Application Procedures

5.3 Notice of Deficient Application

5.4 Identity of Ultimate Consumer

5.5 Mutually Exclusive Applications for Same Service

5.6 Applications Filed By Bonneville

6. Priority of Requests

7. Capacity Availability and Expansion Obligations

7.1 Determination of Capacity Availability

7.2 Conditions on Capacity Availability

7.3 Partial Capacity Availability

7.4 Withdrawal of Application or Failure to Execute Service

Agreement

7.5 Responsibility of Parties for Network PTP Transmission

Facilities Modification

8. Subsequent Requirements Where no New Facilities Are Needed

8.1 Notification of Applicant

8.2 Applicant Responsibilities

8.3 Extension of Service Date

9. Subsequent Requirements When New Facilities Are Needed

9.1 Application Notification

9.2 System Impact Study

9.3 Applicant Responsibility and Remedies

9.4 Due Diligence in Completion of Facility Modifications

9.5 Coordination of Third Party System Additions

10. Electronic Bulletin Board

11. Scheduling

11.1 General Conditions

11.2 Customer Responsibility for Third Party Arrangements

11.3 Flexible Point(s) of Interconnection and Delivery

11.4 Due Diligence

12. Priority of Service and Interruptions

12.1 Service Priority

12.2 Bonneville Responsibilities

12.3 Interruption of Service

13. Service Agreements

13.1 Requirement for A Signed Service Agreement

13.2 Modification or Amendment of The Service Agreement

13.3 Commencement of Service in Absence of Signed Service

Agreement

13.4 Customer Obligations in Absence of Signed Service

Agreement

13.5 Obligations on Acceptance of Service

14. Billing

15. Records

15.1 Recordkeeping Obligations

15.2 Customer's Right to Examine Records

16. Liability and Indemnification

16.1 Western Interconnected Systems Agreement

16.2 No Western Interconnected Systems Agreement

17. Sale or Assignment of Network Transmission Service

18.1 Right to Assign or Transfer

18.2 Liability for Performance

18. Creditworthiness

19. Procedures to Resolve Network Transmission Complaints

20. Regulation

Bonneville Power Administration Point-to-Point (PTP) Firm Network

Transmission Service Tariff

The Bonneville Power Administration (Bonneville) will provide

Point-to-Point (PTP) Firm Network Transmission Service to Eligible

Customers pursuant to the terms and conditions of this Tariff.

1. Definitions

1.1 Applicant

An Eligible Customer who submits a completed Application.

[[Page 12925]]

1.2 Application

A written request by an Eligible Customer for PTP Firm Network

Transmission Service submitted to Bonneville which satisfies the

provisions of this Tariff, including provisions of section 5.2.

1.3 Commission

The Federal Energy Regulatory Commission or its successor.

1.4 Control Area

The set of generating units, electrical loads, and transmission

facilities managed and overseen by a utility that is responsible for

matching generation with such loads on an instantaneous basis.

1.5 Customer

An Eligible Customer that has executed a Service Agreement for

Network PTP Transmission Service pursuant to this Tariff or is

receiving service under a proposed Service Agreement.

1.6 Delivering Party

The entity supplying the electric energy to be transmitted over

Bonneville's Network PTP Transmission System Facilities.

1.7 Direct Assignment Facilities

Transmission facilities which are not an integral part of, and do

not support, Bonneville's Network PTP Transmission System Facilities

and that are constructed by Bonneville to satisfy an Application under

this Tariff, and whose costs Bonneville may recover directly from the

Customer as provided in the PTP Firm Network Transmission rate

schedules (PT-95), or its successor.

1.8 Effective Date

The date upon which Bonneville and an Eligible Customer execute a

Service Agreement in accordance with the terms and conditions of this

Tariff.

1.9 Eligible Customer

A private or public corporation, governmental agency or authority,

joint action agency, municipality, rural electric membership

corporation or cooperative, person, or any lawful association of the

foregoing, which engages in the generation, transmission, or

distribution of electric energy at wholesale or retail and which will

rely on Bonneville's Network PTP Transmission System Facilities to

transmit power from a control area or resource to another control area

for the purpose of satisfying the commercial transmission needs of the

customer. Bonneville's direct service industrial customers on the

effective date of this Tariff shall be considered Eligible Customers.

Other than Bonneville's direct service industrial customers, and

Eligible Customer shall not include any entity for which the Commission

is prohibited under Sections 212 (g) and (h) of the Federal Power Act

(FPA) from ordering the provision of transmission service. A power

marketing entity (marketer) will be considered to be an Eligible

Customer only to the extent that it requests service to deliver

capacity or energy that will be purchased by an Eligible Customer.

1.10 Good Utility Practice

Any of the practices, methods, and acts engaged in or approved by a

significant portion of the electric utility industry during the

relevant time period, or any of the practices, methods, and acts which,

in the exercise of reasonable judgment in light of the facts known at

the time the decision is made, could have been expected to produce the

desired result at the lowest cost consistent with good business

practices, reliability, safety, and expedition. Good Utility Practice

is not intended to be limited to the optimum practice, method, or act

to the exclusion of all others, but rather to be a range of acceptable

practices, methods, or acts.

1.11 Incremental Cost

The increase in Network PTP Transmission System Facilities revenue

requirements incurred by Bonneville in providing the Customer's share

of Network Upgrades which are required to provide Network Transmission

Service as determined in a separate ratemaking process pursuant to

Section 7(i) of the Northwest Power Act (16 U.S.C. Sec. 839e(i)).

1.12 Native Load Customers

Those wholesale and direct service industrial power sale customers,

other than Network Integration Service Customers, on whose behalf

Bonneville, by statute, or contract, has undertaken an obligation to

plan, construct, and operate its electric system to provide reliable

electric service.

1.13 Network PTP Transmission System Facilities

The Integrated Network segment of the Federal Columbia River

Transmission System operated by Bonneville.

1.14 Network PTP Transmission Service

Firm transmission service provided pursuant to this Tariff and an

executed Service Agreement at 60 hertz, alternating current, three

phase, over the Network PTP Transmission System Facilities.

1.15 Network Upgrade

Upgrades to transmission-facilities that are integrated with and

support the Network PTP Transmission System Facilities and are

constructed by Bonneville to satisfy, at least in part, an Application.

1.16 Opportunity Costs

Net loss of revenue or the net increase in generation cost caused

by displacing one transaction with another when the transmission system

is so constrained that both transactions cannot be handled at the same

time. Opportunity costs do not include any loss of revenue resulting

from competition, or foregone revenues from purchase and resale

transactions to serve other than Native Load Customers or Network Load.

or foregone revenues from purchase and resale transactions.

1.17 Point(s) of Delivery

Point(s) on Bonneville's Network PTP Transmission Facilities where

Bonneville is interconnected with the Receiving Party or the Receiving

Party's authorized agent and where Bonneville can deliver power

transmitted pursuant to a Service Agreement.

1.18 Point(s) of Interconnection

Point(s) on Bonneville's Network PTP Transmission System Facilities

where Bonneville is interconnected with the Delivering Party or the

Delivering Party's authorized agent and where Bonneville can receive

power transmitted pursuant to a Service Agreement.

1.19 Receiving Party

The entity receiving the electric energy to be transmitted over

Bonneville's Network PTP Transmission System Facilities.

1.20 Reservation Charge

The charge the Customer must pay to reserve capacity for future use

as described in the Point-to-Point (PT-95) Transmission Rate or its

successor in Appendix A.

1.21 Service Agreement

The initial agreement and any supplements or amendments thereto

entered into by the Customer and Bonneville in order to initiate

service under this Tariff.

1.22 Study Agreement

An agreement under which Bonneville would agree to conduct a

[[Page 12926]] System Impact Study, and the Customer would agrees to

compensate Bonneville in advance for the cost of conducting the System

Impact Study.

1.23 System Impact Study

An assessment by Bonneville to determine whether sufficient

transmission capacity exists to provide the requested transmission

service initially and for the term of the request. The assessment study

results shall include the cost, environmental review, and scheduled

completion date for such modifications, which may be determined to be

required in order to provide a requested Network PTP Transmission

Service.

1.24 Transmission Demand

The maximum hourly amount of electric power that Bonneville agrees

to transmit for the Customer over Bonneville's Network PTP Transmission

System Facilities between the Point(s) of Interconnection and the

Point(s) of Delivery. Transmission Demand shall be expressed in terms

of whole megawatts on a 60-minute interval (commencing on the clock-

hour) basis.

2. Character and Availability of Service

2.1 Nature of Service

PTP Firm Network Transmission Service is a service that permits

Eligible Customers to serve Customer load or transactions with third

parties. The service provides firm transmission capacity to Eligible

Customers from one control area to another through Points of

Interconnection and Points of Delivery. This service also permits

nonfirm wheeling through ``Secondary'' Points of Interconnection and

Delivery.

2.2 Term of Service

PTP Firm Network Transmission Service is available for a minimum of

1 month.

2.3 Service Agreement Requirements

A Service Agreement must be executed prior to the commencement of

service under this Tariff except as provided in section 13.4.

2.4 Control Area Requirements

As a condition to obtaining Network PTP Transmission Service, the

Customer shall: (i) operate as a Control Area under applicable

guidelines of the North American Electric Reliability Council (NERC),

the Western Systems Coordinating Council (WSCC) the Western Systems

Coordinating Council (WSCC), and the Northwest Power Pool (NWPP); or

(ii) satisfy its responsibility to be operated as a Control Area by

contract with Bonneville pursuant to section 2.5; or (iii) by contract

with another entity which Bonneville accepts as sufficient to satisfy

NERC, WSCC, WSCC, and NWPP requirements. Bonneville shall not

unreasonably refuse to accept contractual arrangements with another

entity for such service.

2.5 Ancillary Services

This Tariff constitutes an offer to provide only Network PTP

Transmission Service. Bonneville commits either to provide the Customer

with services necessary for it to take Network PTP Transmission Service

under this Tariff or to cooperate with the Customer so that the

Customer can utilize its own resources or the resources of third

parties to provide such services. Such services if provided by

Bonneville are offered on a not unduly discriminatory basis, subject to

resource, engineering, and reliability limitations.

3. Interconnection and Interchange

3.1 Designation of Transmission Demand, Point(s) of Interconnection,

and Point(s) of Delivery

The Transmission Demand, Point(s) of Interconnection, and Point(s)

of Delivery shall be as set forth in the Service Agreement. The Points

of Interconnection and Delivery so designated in the Service Agreement

are the ``Primary'' Points of Interconnection and Delivery. The total

Transmission Demand shall be equal to the sum of the Transmission

Demands at all Points of Interconnection which shall equal the sum of

the Transmission Demands at all Points of Delivery.

3.2 Bonneville Responsibility

Bonneville shall deliver the capacity and energy required from

Point(s) of Interconnection to Point(s) of Delivery as pursuant to the

Service Agreement up to the Transmission Demand.

3.3 Metering

Electric capacity and energy transmitted under this Tariff shall be

measured as appropriate by metering equipment provided by Bonneville

and the Customer at such points and voltages as set forth in the

Service Agreement.

3.4 Third Party Arrangements

The Customer need not be directly interconnected with Bonneville,

but shall make any and all necessary arrangements for the delivery of

power to the Point(s) of Interconnection and receipt from the Point(s)

of Delivery, and Bonneville shall have no responsibility for such

arrangements. The Customer shall furnish Bonneville with such necessary

and appropriate information with respect to such arrangements as shall

permit Bonneville to carry out its responsibilities under this Tariff.

The Customer shall be responsible for resolution of operating problems

and for making and arranging any necessary engineering, permitting,

construction, and regulatory approval of transmission or distribution

facilities on third party electric systems related to any transactions

provided under this Tariff and for the costs associated with resolving

those problems.

4. Rates

4.1 Transmission Charge

Payment hereunder shall be calculated pursuant to the rates and

formulae in Appendix A, the PTP Firm Network Transmission rate (PT-95)

or its successor.

4.2 Dual Transmission Charge

Where the installation of Network Upgrades does not fully eliminate

a constraint, the Transmission Demand Charge shall be treated as two

transactions for payment purposes, with the portion of the Transmission

Charge for which the construction of Network Upgrades will eliminate

the constraint priced in accordance with section IV.D. of PT-95 or its

successor in Appendix A, and the residual portion of the Transmission

Charge for which a constraint is not eliminated by the Network Upgrades

priced in accordance with section II of PT-95 or its successor in

Appendix A. The Transmission Charge and the Dual Transmission Charge

are mutually exclusive charges. Bonneville may charge one or the other,

but not both.

4.3 Direct Assignment Facilities

In addition to the payments made pursuant to sections 4.1 or 4.2

above, payment shall be made to Bonneville for the cost incurred by

Bonneville for providing any Direct Assignment Facilities. The

calculation of the Customer's monthly payment for Direct Assignment

Facilities shall be in accordance with PT-95 or its successor in

Appendix A.

4.4 Termination Charge

The Customer shall pay an appropriate charge to cover the costs of

facilities added for the benefit of the customer under this Tariff the

Service Agreement if the Customer terminates Network PTP Transmission

Service prior to the termination date of the Service Agreement. The

Customer shall receive a credit for any mitigation provided by the

facilities to the Network [[Page 12927]] PTP Transmission System

revenues subsequently received by Bonneville for use of such

facilities.

4.5 Reservation Charge

The Customer may pay a Reservation Charge pursuant to PT-95 or its

successor in Appendix A, to preserve its priority for service with

respect to other Applicants and Customers.

4.6 Transmission Losses

Transmission losses shall be determined on the basis of average

estimated system losses. The Customer shall compensate Bonneville for

losses by either providing additional energy to compensate for losses

associated with the scheduled capacity or by buying losses from

Bonneville in accordance with the Firm Power Products and Services

(FPS-95) rate schedule or its successor in Appendix A.

4.7 Reactive Charge

The Customer shall pay for reactive power necessary to provide

transmission services under this Tariff pursuant to the PTP Firm

Transmission rate (PT-95) or its successor.

4.8 Control Area Services Charge

If a Customer elects to purchase Control Area services from

Bonneville pursuant to the Ancillary Services in section 2.5, the

Customer shall pay for such services pursuant to the FPS-95 rate

schedule or its successor.

4.9 Revision to Rates, Charges, and Loss Factors

Bonneville may periodically revise rates, charges, and transmission

loss factors and apply such revisions to its Service Agreements.

4.10 Commencement of Service

Within 30 days of the receipt of notice from Bonneville that

service can commence, the Customer shall commence paying the

Transmission Charge or Dual Transmission Charge and any other rates or

charges required by section 4 hereof. Failure to do so will result in

forfeiture by the Customer of all deposits and security and require

immediate payment of any cost incurred by Bonneville to furnish the

requested Network PTP Transmission Service; and the Customer's

Application will no longer be considered valid or pending.

5. Initiating Service

5.1 Conditions Precedent for Receiving Service

Subject to the terms and conditions of this Tariff, Bonneville

shall provide Network PTP Transmission Service over the Network PTP

Transmission System Facilities to any Eligible Customer, provided that:

(i) the Eligible Customer has completed an Application for Network PTP

Transmission Service as provided below in section 5.2; (ii) the

Eligible Customer and Bonneville have completed the technical

arrangements set forth in section 9.4 below; and (iii) the Eligible

Customer has executed a Service Agreement.

5.2 Application Procedures

For transactions of 1 month up to 1 year an Eligible Customer

requesting service under this Tariff must submit a completed

application to: Bonneville Power Administration, Attention: Manager,

Short-Term Contracts; P.O. Box 491; Vancouver, Washington, 98666-0491.

For transactions of 1 year or more an Eligible Customer requesting

Service under this Tariff must submit a completed Application to:

Bonneville Power Administration, Attention: Manager, Transmission

Business; Bonneville Power Administration; P.O. Box 3621; Portland,

Oregon, 97208-3621. In order for an Application hereunder to be

considered a ``good faith request'' for transmission service in

accordance with the provisions of Section 213 of the FPA, the

Application must contain the following information:

(a) The identity, address, and telephone number of the Applicant

requesting a Network PTP Transmission Service;

(b) A statement that the entity requesting Network PTP Transmission

Service hereunder is, or will be upon commencement of service, an

Eligible Customer under this Tariff.

(c) The name and title of the contact person for the Applicant.

(d) The identity of the Delivering Party and the identity of the

Receiving Party;

(e) The Primary Point(s) of Interconnection and the Primary

Point(s) of Delivery;

(f) The proposed dates for initiating and terminating PTP

Transmission Service hereunder;

(g) The Transmission Demand, expected load profile and load

characteristics;

(h) The identity of the initial source of the power to be

transmitted pursuant to the Application; and

(i) The identity of the Control Area in which the ultimate consumer

of power is located.

Bonneville will notify the Applicant of receipt of the Application

within 10 days of receipt. Bonneville reserves the right to ask for

additional information necessary to determine the availability of

transmission capacity and reliability impacts.

5.3 Notice of Deficient Application

If an Application fails to meet the requirements of this Tariff,

Bonneville shall notify the party requesting service within 10 days of

receipt of the Application of the reasons for such failure. Bonneville

will attempt to remedy minor deficiencies in the Application through

informal communications with the Eligible Customer. If such efforts are

unsuccessful, Bonneville shall return the Application. Upon receipt of

a new or revised Application that fully complies with the requirements

of this Tariff, the Eligible Customer shall be assigned a new priority

consistent with the date of the new or revised Application.

5.4 Identity of Ultimate Consumer

The Applicant may be required to identify the ultimate consumer of

the power to be transmitted if such information is necessary for

Bonneville to determine, pursuant to section 7 hereof, whether adequate

transmission capacity will be available on its Network PTP Transmission

System Facilities to provide the service initially and for the full

term of the transaction requested by the Applicant. If the Applicant

objects to a request by Bonneville under sections 5.3 or 5.4 that it

provide the name of the ultimate consumer, then Bonneville shall have

the right to seek an order from the Commission allowing Bonneville to

require the Applicant to provide Bonneville with the identity of the

ultimate consumer and the parties cannot otherwise resolve their

differences, the Applicant may proceed under the provisions of section

19.

5.5 Mutually Exclusive Applications for Same Service

In order to determine whether Applications for Network PTP

Transmission Service hereunder are duplicative or mutually exclusive of

Applications filed by other parties, Bonneville may request further

information, including, by way of illustration, a statement as to

whether the Application is being made in response to a competitive

solicitation. If certain requests for Network PTP Transmission Service

give Bonneville a reasonable basis to believe that such requests are

mutually exclusive, Bonneville may ask the Applicant making such a

request to identify the ultimate purchaser of power and, if appropriate

under the circumstances, Bonneville may contact the ultimate

[[Page 12928]] purchaser to determine whether the Applications are

mutually exclusive. Should Bonneville confirm that particular

Applications hereunder are mutually exclusive (e.g., the ultimate

purchaser will buy from one but not all of the Eligible Customers who

have submitted Applications), Bonneville reserves the right to process

all such Applications as though they were a single Application.

5.6 Applications Filed By Bonneville

Applications filed by Bonneville pursuant to section 6.2 hereof.

Bonneville will file applications for firm service to serve its own

firm commercial transactions which do not constitute service to Native

Load Customers. Such applications will be treated in the same manner as

any Application under this Tariff and assigned a priority for

determining transmission capacity availability according to the

provisions set forth in section 7.1.

6. Priority of Requests

All requests for Network PTP Transmission Service and all other

requests for firm transmission service, other than service to Native

Load Customers and to Network Load of Network Integration Service

Customers, shall be evaluated. Priority shall be determined on a first-

come, first-served basis based on the date when Bonneville receives an

executed Service Agreement, after meeting the obligations listed in

section 8.2.

7. Capacity Availability and Expansion Obligations

7.1 Determination of Capacity Availability

Upon receiving a complying Application hereunder, Bonneville will

determine the requirements, if any, to interconnect the Applicant with

Bonneville's electric system and whether adequate capacity will be

available on Bonneville's Network PTP Transmission System Facilities to

provide the service initially and for the full term of the transaction

requested by the Applicant. Such determination will be made as soon as

possible, not to exceed 60 days from the date of interconnection,

unless the number or complexity of Applications reasonably requires

additional time. If additional time is required, Bonneville shall

notify the Applicant on a timely basis and provide an estimate of the

time needed to reach a final determination. If Bonneville determines

that adequate capacity will be available on its Network PTP

Transmission System Facilities to provide service for the highest

priority Application, and subject to the requirements of the National

Environmental Policy Act or any other applicable environmental laws,

Bonneville will notify the Applicant and tender a Service Agreement

pursuant to section 8.

7.2 Conditions on Capacity Availability

In determining whether adequate capacity will be available on its

Network PTP Transmission System Facilities for the requested service

both initially and for the full term of the requested transaction,

Bonneville shall determine if capacity is available in excess of that

required to accommodate: (1) the existing and forecasted loads of its

Native Load Customers; (2) Bonneville's other customers to whom

Bonneville has preexisting contractual obligations commitments for firm

wholesale purchases, exchanges, deliveries, and sales; and (3) existing

contractual, statutory, and regulatory commitments for firm

transmission service; any existing contractual commitments providing

for hydroelectric system coordination or forced outage reserves, as

well as (4) transmission capacity reserved for reliability, regulation,

and inadvertent flows based on Bonneville's historical use or planned

use for such purposes; and (5) delivery of Federal and Network

Integration Service Customers' hydroelectric power in times of actual

or threatened spill. In making such determination, Bonneville shall use

the WSCC's and Bonneville's ``Reliability Criteria for Network PTP

Transmission System Planning.'' Bonneville shall not take into

consideration any other pending Application of lower priority for

Network PTP Transmission Service. Network PTP Transmission Service

shall also be subject to Good Utility Practice in order to take into

account the physical characteristics and constraints on Bonneville's

Network PTP Transmission System Facilities.

7.3 Partial Capacity Availability

If Bonneville determines to provide the requested service but that

it will not have adequate capacity available on its Network PTP

Transmission System Facilities to satisfy the full amount of the

requested service, Bonneville will allow the Applicant to either: (a)

sign a Service Agreement pursuant to section 8 hereof for the amount of

Network PTP Transmission Service that can be provided immediately, and

receive for the remainder of the requested service pursuant to section

9 hereof after the necessary facility upgrades and modifications have

been installed; (b) sign a Service Agreement pursuant to section 8

hereof for the amount of Network PTP Transmission Service that can be

provided immediately and withdraw the Application for the remainder of

the service; (c) sign a Service Agreement to receive all the requested

Network PTP Transmission Service pursuant to section 9 hereof after the

necessary facility modifications are completed; or (d) withdraw the

Application for Network PTP Transmission Service.

7.4 Withdrawal of Application or Failure to Execute Service Agreement

Should an Applicant withdraw all or part of its Application, or

should an Applicant fail to execute a Service Agreement within the

required time period provided in section 8.2, except as otherwise

provided in section 13.4, Bonneville will reevaluate whether capacity

is available on the Network PTP Transmission System Facilities which

would satisfy any other Applications which could utilize such Network

PTP Transmission System capacity and which had a lower priority than

the withdrawn Application. Bonneville shall reevaluate such lower

priority Applications in the order of their assigned priority. Should

Bonneville determine that additional Network PTP Transmission System

Facilities capacity is available for any Customer submitting a lower

priority Application, Bonneville shall allow such Customer an option,

to be exercised within 10 days to execute or to modify its Service

Agreement shall offer such Customer a Service Agreement, pursuant to

the provisions of this Tariff, to reflect the availability of such

additional Network PTP Transmission System capacity.

7.5 Responsibility of Parties for Network PTP Transmission Facilities

Modification

Where a determination is made by Bonneville that an Application for

Network PTP Transmission Service pursuant to this Tariff will require

modifications to the Network PTP Transmission System Facilities, or

when an Applicant requests specific upgrades, Bonneville commits to use

due diligence consistent with its statutory environmental obligations

to make such modifications to the Network PTP Transmission Facilities

within a reasonable time; provided, however, that the Applicant agrees

to compensate Bonneville for the costs, determined pursuant to section

4 of all modifications to the Network PTP Transmission System

Facilities reasonably required to provide such [[Page 12929]] service.

Bonneville will not increase or upgrade the capacity of its existing or

planned transmission facilities in order to provide service under this

Tariff if doing so would unduly impair system reliability or otherwise

jeopardize service to its Native Load Customers and or other Customers

to whom Bonneville has a preexisting contractual obligation. Unless

otherwise agreed to by Bonneville and the Customer, Bonneville will own

any additional electrical facilities or upgrades constructed pursuant

to this Tariff. The Customer shall cooperate with Bonneville in the

construction of any required facilities and shall take all reasonable

steps to assist Bonneville in obtaining any necessary permits,

authorizations, and rights-of-way.

8. Subsequent Requirements Where No New Facilities Are Needed

8.1 Notification of Applicant

When, pursuant to section 8 hereof, Bonneville determines that

adequate capacity and facilities will be available on its electric

system to provide the requested service initially and for the full term

of the transaction requested, Bonneville shall so notify the Applicant

in writing and tender a Service Agreement as soon as possible, not to

exceed 30 days thereafter, to the Applicant.

8.2 Applicant Responsibilities

Within 30 days, unless otherwise agreed, after receipt of such

Service Agreement, the Applicant must either: (a) execute the Service

Agreement; (b) withdraw its Application; or (c) inform Bonneville that

the Service Agreement is unacceptable as tendered and request that

Network PTP Transmission Service commence pursuant to section 134.

Failure to take any one of the foregoing actions within such 30 days,

unless otherwise agreed, will be deemed to be a withdrawal of the

Application. Nothing herein limits the right of the Applicant to file

another Application for Network PTP Transmission Service immediately

upon such withdrawal.

8.3 Extension of Service Date

A Customer that has entered into a contract with an Eligible

Utility for the sale, purchase, or exchange of capacity and/or energy

or provides Bonneville with sufficient evidence that such a sale is

likely to be consummated, can reserve capacity by paying a Reservation

Charge specified in section W of the Adjustments, Charges, and Special

Rate Provisions.

9. Subsequent Requirements When New Facilities Are Needed

9.1 Applicant Notification

When, pursuant to section 9 hereof, Bonneville determines that an

Application will require initially, or during the term of the

transaction, Network Upgrades and/or Direct Assignment Facilities; in

order to either provide the required Network PTP Transmission Service

or to interconnect the Applicant to Bonneville's electric system, at

the earliest possible date, not to exceed 60 days of receipt of the

Application, Bonneville shall inform the Customer, in writing, of the

requirement to perform a System Impact Study, and shall tender a Study

Agreement.

9.2 System Impact Study

Upon receipt of the executed Study Agreement, Bonneville shall

commence the System Impact Study. Upon completion of the System Impact

Study, Bonneville will present the results, including workpapers, to

the Applicant. If Bonneville determines that construction of such

facilities is feasible and consistent with its environmental

obligations, it shall and tender a Service Agreement under which the

Applicant would agree to receive service upon completion of the

facility modifications and to fully compensate Bonneville for the

facility modifications, pursuant to section 4 herein.

9.3 Applicant Responsibility and Remedies

For the Application to remain valid and pending, within 90 days of

the receipt of the System Impact Study and the Service Agreement, the

Applicant must execute the Service Agreement. In order to protect

Bonneville against the risk of nonpayment by the Applicant for the

facility modifications, the Applicant and Bonneville shall negotiate

reasonable security provisions acceptable to both parties. If

Bonneville and the Applicant are unable to reach agreement on the

amount and form of the security provisions, then the Applicant may

proceed under the provisions of section 19.

9.4 Due Diligence in Completion of Facility Modifications

Upon receipt of the executed Service Agreement and the associated

security provisions, Bonneville shall use due diligence to complete the

necessary modifications within a reasonable time. Bonneville shall give

the Customer 90 days written notice prior to the projected completion

of the facility modifications. Promptly upon completion of such

modifications, Bonneville shall notify the Customer in writing that

service can commence. Service shall commence pursuant to section 4.8.

9.5 Coordination of Third Party System Additions

Where the need for Network Upgrades or Direct Assignment Facilities

are identified, and such upgrades require the addition of transmission

facilities on other system(s), Bonneville shall have the right to

coordinate construction on its own system with the construction

required by other(s). Bonneville, after consultation with the Customer

and representatives of such other system(s), may defer construction of

new transmission facilities on its own system pending the resolution of

obstacles to the timely completion of new transmission facilities on

other system(s) needed to provide the requested service.

10. Electronic Bulletin Board

Bonneville shall cooperate with Customers and utilities who are

members of the WSCC to develop an electronic bulletin board that is

compatible with and useful to all WSCC members. The purpose of the

electronic bulletin board is to make known to users the available

transmission capacity and any proposals to increase that capacity.

11. Scheduling

11.1 General Conditions

All capacity and energy to be transmitted by Bonneville hereunder

shall be scheduled in advance pursuant to the terms of the Service

Agreement and will reflect the procedures used by Bonneville in

scheduling its own transactions. Bonneville will make schedule changes

on short notice if reasonably practicable. The Customer shall provide

written notification to Bonneville identifying all systems involved in

the transaction and authorizing such systems to schedule all capacity

and energy to be transmitted by Bonneville pursuant to the Service

Agreement on behalf of the Receiving Party at the Point of Delivery or

the Delivering Party at the Point of Interconnection.

11.2 Customer Responsibility for Third Party Arrangements

Any arrangements necessary for scheduling power flows on third

party electric systems, including compensation for any associated

costs, losses, or parallel flows on such systems, shall be the

responsibility of the Customer requesting service. [[Page 12930]]

11.3 Flexibility Point(s) of Interconnection and Delivery

As an alternative to receiving service from Primary Points of

Interconnection to Primary Points of Delivery, the Customer may request

Bonneville to provide nonfirm Network PTP Transmission Service between

interconnection and delivery points other than those specified in the

Service Agreement (``Secondary Points of Interconnection and

Delivery''), in amounts not to exceed its Transmission Demand, without

incurring any additional charges, executing a new Service Agreement, or

affecting its priority at Primary Points of Interconnection and

Delivery. Service provided between Secondary Points of Interconnection

and Delivery will be nonfirm only, on a capacity available basis and

will not displace any firm or nonfirm service of higher priority

previously scheduled by third parties or by Bonneville on behalf of its

Native Load Customers and other customers to whom Bonneville has a

preexisting contractual obligation and subject to higher priority

schedules to: (1) serve Bonneville's Native Load; (2) serve Network

Integration Service network load; and (3) deliver Federal and Network

Integration Service hydroelectric power subject to spill or threatened

spill.

11.4 Due Diligence

Bonneville and the Customer shall exercise due diligence and

reasonable care and foresight in arranging for and operating their

respective sources of supply and other facilities so that scheduled

amounts of capacity and energy shall be delivered in accordance with

section 12.1.

12. Priority of Service and Interruptions

12.1 Service Priority

Unless otherwise specified in the Service Agreement all service

provided hereunder from Primary Points of Interconnection to Primary

Points of Delivery shall have priority over nonfirm transmission

service, including that which Bonneville provides itself and which

otherwise has not been appropriately reserved by Bonneville in the

Service Agreement to serve the needs of Native Load Customers or

Network Integration Service Customers or to avoid spill of Federal or

Network Integration Service hydroelectric power.

12.2 Bonneville Responsibilities

Bonneville will use due diligence to furnish the firm Network PTP

Transmission Service available under this Tariff, but it does not

guarantee uninterrupted transmission of electric energy or capacity. To

the extent practicable, Bonneville will provide reasonable advance

notice to the Customer of any scheduled interruptions, reductions, or

other impairments of the Network PTP Transmission Service as specified

in the individual Service Agreement.

12.3 Interruption of Service

Any interruption of service will not be on an unduly discriminatory

basis as between Bonneville and similarly situated Customers.

13. Service Agreements

13.1 Requirement for a Signed Service Agreement

Subject only to the provisions of section 14.43 herein, Bonneville

is obligated to provide Network PTP Transmission Service under this

Tariff only to Customers that have signed a Service Agreement with

Bonneville for the requested service. The Service Agreement shall

contain a statement of service specifications, including without

limitation, the amount of Transmission Demand; the term of such

service; identification of Primary Point(s) of Interconnection, Primary

Point(s) of Delivery, Delivering Party, Receiving Party; the rates and

charges for such service, and where applicable, the cost of necessary

facilities, including Direct Assignment Facilities and an appropriate

allocation of Network Upgrades.

13.2 Modification or Amendment of the Service Agreement

Any request to modify Primary Points of Interconnection and/or

Delivery or to increase the Transmission Demand will be analyzed in the

same manner as a new Application, except that the Customer will not be

obligated to pay any additional reservation fee if the additional

transmission Demand does not exceed the Transmission Demand in the

existing Service Agreement. While such new request is pending, the

Customer shall retain its priority for service at the existing Primary

Points of Interconnection and Delivery. If Demand is not available then

the request will receive a service priority pursuant to section 8.

13.3 Commencement of Service in Absence of Signed Service Agreement

If Bonneville and an Applicant cannot agree on the terms of the

Service Agreement, Bonneville may provide the requested service if

Demand transmission capacity is available, as soon as reasonably

practicable after receipt of a valid Application for transmission,

subject to Good Utility Practice. Such service will be provided under

terms and conditions deemed appropriate by Bonneville for the requested

service. Bonneville will provide the requested service under terms and

conditions ultimately determined by the Commission to be appropriate

under Sections 211 and 212 of the FPA, within the constraints imposed

by engineering and reliability limitations.

13.4 Customer Obligations in Absence of Signed Service Agreement

Notwithstanding any other provision of this Tariff, Bonneville is

not obligated to provide Network PTP Transmission Service to a Customer

until such Customer provides Bonneville with a binding written

commitment to pay for any facility modifications determined by

Bonneville under section 8 hereof to be reasonably necessary to provide

the requested services.

13.5 Obligations on Acceptance of Service

Acceptance of service by the Customer pursuant to a Service

Agreement filed under this Tariff commits the Customer both to the

provisions of this Tariff and to the terms of the individual Service

Agreement.

14. Billing

Bonneville shall bill in accordance with the billing information in

the current General Rate Schedule Provisions, Appendix A or successor,

or as they may from time to time be revised receipt.

15. Records

15.1 Recordkeeping Obligations

Bonneville and the Customer shall keep such records as may be

needed to afford a clear history of all transactions under this Tariff

and associated Service Agreement. The originals of all such records

shall be retained for a minimum of 2 years plus the current year (or

such longer period as may be appropriate) and copies shall be delivered

to the other party on request.

15.2 Customer's Right to Examine Records

The Customer shall have the right, during normal business hours, to

examine the accounting and other records for the last 2 calendar years

relating to its transactions under this Tariff and shall have the right

to make such audits and copies of records as it shall deem necessary or

desirable. Such examinations shall be at the Customer's expense. Such

audit shall be conducted [[Page 12931]] no more frequently than once

every 2 years.

16. Liability and Indemnification

16.1 Western Interconnected Systems Agreement

If an Applicant is a party to the Western Interconnected Systems

Agreement Limiting Liability, such agreement shall continue in full

force and effect as between the parties to the extent that such

provisions may apply to the transactions contemplated by this Tariff.

16.2 No Western Interconnected Systems Agreement

If an Applicant is not a party to the Western Interconnected

Systems Agreement Limiting Liability, and there is no other agreement

on file with the Commission governing liability and indemnification

between Bonneville and the Applicant, then, in such event, additional

provisions for protection of electric generation facilities or

transmission facilities and liability and indemnification may be

required. Such additional provisions shall be set forth in the

Applicant's Service Agreement.

17. Sale or Assignment of Network PTP Transmission Service

17.1 Right to Sell, Assign or Transfer

Subject to the approval of Bonneville, a Customer may sell, assign,

or transfer all, or a portion of, its rights under the Service

Agreement executed pursuant to this Tariff, but only to an entity that

qualifies as an Eligible Customer. If the second Customer so purchasing

or taking an assignment does not request any change in the Primary

Point(s) of Delivery of or Primary Point(s) of Interconnection, subject

to section 14.32, or a change in any other material term or condition

set forth in the original Service Agreement, the second Customer will

receive the same service as the first Customer. If the second Customer

requests a change in any material term or condition set forth in the

original Service Agreement, Bonneville will consent to such change

subject to the provisions of section 14 herein, but only if to do so

will not unduly impair the operation and reliability of Bonneville's

generation, or transmission, or distribution systems, and on the

condition that the second Customer agrees to compensate the Customer

Bonneville for any additional costs resulting from such change. The

Customer that received the assignment shall assume responsibility for

scheduling. The Customer making the assignment shall continue to have

responsibility for compliance with the Service Agreement including

making payment to Bonneville.

17.2 Liability for Performance

The Customer that received the assignment shall assume

responsibility for scheduling. The original Customer shall remain

liable for the performance of all other obligations under the Service

Agreement including making payment to Bonneville, except as

specifically agreed to by the parties through an amendment to the

Service Agreement. Bonneville will amend the Service Agreement only if

the assignee: (a) meets the creditworthiness criteria of section 19;

and (b) agrees to compensate Bonneville for Direct Assignment

Facilities, and allocated Network Upgrades and costs resulting from

changes in service; and (c) provides security equivalent to that

provided by the original Customer.

18. Creditworthiness

For the purpose of determining the ability of the Customer to meet

its obligations related to service hereunder, Bonneville may require

reasonable credit review procedures which may include, but shall not be

limited to, verification that the Customer is not operating under any

State or Federal bankruptcy laws, is not subject to the uncertainty of

pending liquidation or regulatory proceedings in State or Federal

courts, and no significant collection lawsuits or judgments are

outstanding which would seriously reflect upon the Customer's ability,

in Bonneville's determination, to remain solvent. In addition,

Bonneville may require the Customer to provide and maintain in effect

during the term of the Service Agreement, an unconditional and

irrevocable letter of credit as security to meet its responsibilities

and obligations under this Tariff or an alternative form of security

proposed by the Customer and acceptable to Bonneville that protects

Bonneville's Native Load Customers against the risk of nonpayment. Any

disputes over the terms of such security arrangements shall be subject

to the provisions of the Tariff.

19. Procedures to Resolve Network Transmission Complaints

Any complaint arising from an Application hereunder may be

resolved, at the Customer's discretion, by either:

(a) A voluntary dispute resolution process, which may include

mediation or arbitration or both, pursuant to the terms of a regional

transmission association governing agreement which both parties have

executed, or such other dispute resolution rules as may be agreed to by

Bonneville and the Customer; and

(b) A transmission complaint filed with the Commission.

20. Regulation

Service under this Tariff is subject to all existing or future

applicable local, State, and Federal laws and to all existing or future

duly promulgated orders and actions of governmental authorities having

jurisdiction over the matters contained herein.

Proposed Bonneville Power Administration Energy Transmission Service

Tariff

Table of Contents

1. Definitions

1.1 Applicant

1.2 Application

1.3 Commission

1.4 Control Area

1.5 Customer

1.6 Delivering Party

1.7 Eligible Customer

1.8 Energy Transmission Facilities

1.9 Native Load Customers

1.10 Point(s) of Delivery

1.11 Point(s) of Interconnection

1.12 Receiving Party

1.13 Service Agreement

2. Character of Service and Availability

2.1 Nature of Service

2.2 Term of Service

2.3 Priority of Service

2.4 Commencement of Service

2.5 Control Area Requirements

2.6 Ancillary Services

3. Interconnection and Interchange

3.1 Bonneville Responsibility

3.2 Metering

3.3 Third Party Arrangements

4. Rates

4.1 Transmission Charge

4.2 Transmission Losses

4.3 Reactive Charge

4.4 Revision to Rates, Charges, and Loss Factors

5. Initiating Service

5.1 Nonfirm Umbrella Service Agreement

5.2 Short-Term Firm Service Agreement

6. Electronic Bulletin Board

7. Scheduling

7.1 General Conditions

7.2 Due Diligence

7.3 Curtailment

8. Service Agreements

8.1 Requirement for a Signed Service Agreement

8.2 Obligations on Acceptance of Service

9. Billing

10. Records

10.1 Recordkeeping Obligations

10.2 Customer's Right to Examine Records

11. Liability and Indemnification

11.1 Western Interconnected Systems Agreement

11.2 No Western Interconnected Systems Agreement

12. Creditworthiness

13. Procedures to Resolve Transmission Complaints [[Page 12932]]

Bonneville Power Administration Energy Transmission Service Tariff

The Bonneville Power Administration (Bonneville) will provide

short-term firm and nonfirm point-to-point transmission service under

this Energy Transmission Tariff (ET) to Eligible Customers.

1. Definitions

1.1 Applicant

An Eligible Customer who submits a completed Application.

1.2 Application

A request by an Eligible Customer for nonfirm and/or firm Energy

Transmission Service submitted to Bonneville which satisfies the

provisions of this Tariff, including provisions of section 5.

1.3 Commission

The Federal Energy Regulatory Commission or its successor.

1.4 Control Area

The self-contained set of generating units, electrical loads, and

transmission facilities managed and overseen by a utility that is

responsible for matching generation with such loads on an instantaneous

basis.

1.5 Customer

An Eligible Customer that has completed an Application for service

and has executed a Service Agreement for Energy Transmission Service

pursuant to this Tariff.

1.6 Delivering Party The entity supplying the electric energy to be

transmitted over Bonneville's Energy Transmission Facilities.

1.7 Eligible Customer

A private or public corporation, governmental agency or authority,

joint action agency, municipality, rural electric membership

corporation or cooperative, person, or any lawful association of the

foregoing, which engages in the generation, transmission, or

distribution of electric energy at wholesale or retail. Bonneville's

direct service industrial customers on the effective date of this

Tariff shall be considered Eligible Customers. Other than Bonneville's

direct service industrial customers, an Eligible Customer shall not

include any entity for which the Commission is prohibited under

Sections 212(g) and (h) of the Federal Power Act from ordering the

provision of transmission service. A power marketing entity (marketer)

will be considered to be an Eligible Customer only to the extent it

requests service to deliver capacity or energy that will be purchased

by an Eligible Customer.

1.8 Energy Transmission Facilities

The Federal Columbia River Transmission System facilities operated

by Bonneville, excluding the Interties.

1.9 Native Load Customers

Those wholesale and direct service industrial power sale customers,

on whose behalf Bonneville, by statute or contract, has undertaken an

obligation to plan, construct, and operate its electric system to

provide reliable electric service.

1.10 Point(s) of Delivery

Point(s) on Bonneville's Energy Transmission Facilities where

Bonneville is interconnected with the Receiving Party or the Receiving

Party's authorized agent and where Bonneville can deliver power

transmitted pursuant to a Service Agreement.

1.11 Point(s) of Interconnection

Point(s) on Bonneville's Energy Transmission Facilities where

Bonneville is interconnected with the Delivering Party or the

Delivering Party's authorized agent and where Bonneville can receive

power transmitted pursuant to a Service Agreement.

1.12 Receiving Party

The entity receiving the electric energy to be transmitted over

Bonneville's Energy Transmission Facilities.

1.13 Service Agreement

The initial agreement and any supplements or amendments thereto

entered into by the Customer and Bonneville in order to initiate

service under this Tariff. For nonfirm Energy Transmission Service, the

Service Agreement may be in the form of a standard umbrella agreement

for Energy Transmission Service which provides for maximum flexibility

in using Point(s) of Delivery and Point(s) of Interconnection, standard

scheduling provisions and interruption rights, and billing information.

For short-term firm Energy Transmission Service, the Service Agreement

may be in the form of a transaction specific agreement for Energy

Transmission Service which documents the terms and conditions of that

transaction.

2. Character of Service and Availability

2.1 Nature of Service

Energy Transmission Service is a control area to control area

service. The service delivers energy over transmission paths that may

be nonfirm or short-term firm, consolidated by the Customer into a

schedule, from one control area to another through Points of

Interconnection and Points of Delivery. Short-term firm Energy

Transmission Service shall be provided on a take-or-pay basis, unless

curtailed by Bonneville.

2.2 Term of Service

Nonfirm Energy Transmission Service hereunder may only be

prescheduled. Prescheduling is done in hourly increments up to a

maximum of 24 hours from 1 working day to the next. Short-term Firm

Energy Transmission Service may be provided for periods up to 1 month.

2.3 Priority of Service

Energy Transmission Service shall be provided over transmission

capacity available after Bonneville meets its obligations to serve: (1)

its existing and forecasted requirements to serve Native Load

Customers; (2) its existing contractual commitments for firm wholesale

purchases, exchanges, and sales; (3) its existing contractual,

statutory, and regulatory commitments for firm transmission service;

(4) transmission capacity reserved for reliability, regulation, and

inadvertent flows based on Bonneville's historic use or planned use for

such purpose; (5) delivery of Federal and Network Integration

Customers' hydroelectric power in times of actual or threatened spill.

Priority to available capacity shall be provided to requests for

firm service. All requests for nonfirm Energy Transmission Service

hereunder, all other requests for nonfirm transmission service pursuant

to Bonneville's other network transmission tariffs and Bonneville's own

nonfirm network transmission uses, with the exception of Bonneville's

and Network Integration Customers' economy energy purchases, and sales

to avoid hydroelectric spill, shall be evaluated on a first-come,

first-served basis.

2.4 Commencement of Service

A Service Agreement must be executed prior to the commencement of

service under this Tariff.

2.5 Control Area Requirements

As a condition to obtaining Energy Transmission Service, the

Customer shall: (i) operate as a Control Area under applicable

guidelines of the North American Electric Reliability Council (NERC),

the Western Systems Coordinating Council (WSCC), and the

[[Page 12933]] Northwest Power Pool (NWPP); or (ii) satisfy its

responsibility to be operated as a Control Area by contract with

Bonneville pursuant to section 2.6 by contract with another entity

which Bonneville accepts as sufficient to satisfy NERC, WSCC, and NWPP

requirements. Bonneville shall not unreasonably refuse to accept

contractual arrangements with another entity for such services.

2.6 Ancillary Services

This Tariff constitutes an offer to provide only Energy

Transmission Service. Bonneville commits either to provide the Customer

with services necessary for it to take Energy Transmission Service

under this Tariff; or to cooperate with the Customer so that the

Customer can utilize its own resources or the resources of third

parties in order to provide such services. Such services offered by

Bonneville are offered on a not unduly discriminatory basis, subject to

resource, engineering, and reliability limitations.

3. Interconnection and Interchange

3.1 Bonneville Responsibility

Bonneville shall deliver the energy required from Point(s) of

Interconnection to Point(s) of Delivery pursuant to the Service

Agreement up to the amount of designated energy.

3.2 Metering

Electric energy transmitted under this Tariff shall be measured as

appropriate by metering equipment provided by Bonneville and the

Customer at such points and voltages as set forth in the Service

Agreement.

3.3 Third Party Arrangements

The Customer need not be directly interconnected with Bonneville,

but shall make any and all necessary arrangements for the delivery of

power to the Point(s) of Interconnection and receipt from the Point(s)

of Delivery, and Bonneville shall have no responsibility for such

arrangements. The Customer shall furnish Bonneville with such necessary

and appropriate information with respect to such arrangements as shall

permit Bonneville to carry out its responsibilities under this Tariff.

The Customer shall be responsible for scheduling arrangements and

resolution of operating problems on third party electric systems

related to any transactions provided under this Tariff and for the

costs associated with resolving those problems.

4. Rates

4.1 Transmission Charge

Payment hereunder shall be calculated pursuant to the rates and

formulae in Appendix A, the ET-95 rate schedule or its successor.

4.2 Transmission Losses

Transmission losses shall be determined on the basis of average

estimated system losses. The Customer shall compensate Bonneville for

losses by either providing additional energy for losses associated with

the scheduled energy or by buying losses from Bonneville in accordance

with the Firm Power Products and Services (FPS-95) rate schedule in

Appendix A as specified in the Service Agreement.

4.3 Reactive Charge

The Customer shall pay for reactive power necessary to provide

transmission services under this Tariff pursuant to the Firm PTP

Transmission rate (PT-95) or its successor as specified in the Service

Agreement.

4.4 Revision to Rates, Charges, and Loss Factors

Bonneville may periodically revise rates, charges, and transmission

loss factors and apply such revisions to Service Agreements.

5. Initiating Service

5.1 Nonfirm Umbrella Service Agreement

To initiate nonfirm service an Applicant must submit a completed

Application to Bonneville Power Administration; Attention, Manager,

Short-Term Contracts; P.O. Box 491; Vancouver, Washington, 98666-0491.

Such Application shall include:

(a) The identity, address, and telephone number of the Applicant;

(b) A statement that the Applicant is, or will be upon commencement

of service, an Eligible Customer under this Tariff pursuant to section

1.7;

(c) The name, title, and phone number of the contact person for the

Applicant;

(d) The proposed dates for initiating and terminating the Service

Agreement.

The Application shall be used to prepare an `umbrella' Service

Agreement as discussed in section 8.1.

5.2 Short-Term Firm Service Agreement

To initiate short-term firm service, the Application shall include

in addition to the above information the following additional

information:

(a) The identity of the Delivering Party and Receiving Party;

(b) The Point(s) of Interconnection and the Point(s) of Delivery;

(c) The amount of power, including peak demand and total amount of

energy;

(d) The identity of the Control Area(s) in which the resource and

ultimate consumer of power is/are located.

The information in sections 5.1 and 5.2 shall be used to prepare a

``short-term firm'' Service Agreement as discussed in section 8.1.

6. Electronic Bulletin Board

Bonneville shall cooperate with Customers and utilities who are

members of the WSCC to develop an electronic bulletin board that is

compatible and useful to all WSCC members. The purpose of the

electronic bulletin board is to make known to users the available

transmission capacity and any proposals to increase that capacity.

7. Scheduling

7.1 General Conditions

All energy to be transmitted by Bonneville on a nonfirm basis

hereunder shall be scheduled one working day prior to the day service

is to commence, but changes may be made up to the hour preceding the

hour of service when reasonably practicable which is the procedure used

by Bonneville in scheduling its own Energy Transmission transactions.

All power to be transmitted by Bonneville on a short-term firm basis

hereunder shall be scheduled in advance pursuant to the terms of the

Service Agreement and will reflect the procedures used by Bonneville in

scheduling its own transactions. Bonneville will make schedule changes

on short notice if reasonably practicable.

7.2 Due Diligence

Bonneville and the Customer shall exercise due diligence and

reasonable care and foresight in arranging for and operating their

respective sources of supply and other facilities so that scheduled

amounts of energy shall be delivered in accordance with section 7.1.

7.3 Curtailment

In the event Bonneville is forced to curtail deliveries of Energy

Transmission Service, Bonneville shall notify the Receiving Party.

Recipients of nonfirm Energy Transmission Service shall be curtailed

prior to other transmission services customers and on the same basis as

Bonneville's and Network Integration Service Customers' economy

transactions, except where necessary to deliver Bonneville's and

[[Page 12934]] Network Integration Customers' hydroelectric power

subject to spill or threatened spill. The Receiving Party shall have

responsibility for curtailing unless otherwise provided in the Service

Agreement.

8. Service Agreements

8.1 Requirement for a Signed Service Agreement

Bonneville shall provide Energy Transmission Service under this

Tariff only to Customers that have signed a Service Agreement with

Bonneville. For nonfirm service hereunder, Bonneville and the Customer

may enter into an ``umbrella'' Service Agreement that would provide the

Customer transmission access to the Bonneville system to the extent

that capacity is available on Bonneville's system, subject to the

scheduling provisions set forth in section 7. The ``umbrella'' Service

Agreement shall contain, among other provisions, the term, scheduling

provisions and interruption rights, a statement that any Points of

Interconnection or Points of Delivery on Bonneville's Energy

Transmission Facilities may be used for transmitting and receiving

energy, and billing information, including the rates and charges for

such service. For short-term firm service hereunder, Bonneville and the

Customer may enter into a transaction specific ``short-term firm''

Service Agreement that would provide the Customer transmission access

to the Energy Transmission Facilities to the extent capacity is

available on Bonneville's system. Such Service Agreement shall contain

the same information that appears in the ``umbrella'' Service Agreement

except that the Point(s) of Interconnection and the Point(s) of

Delivery shall be specified. In addition, the ``short-term firm''

Service Agreement shall include both the demand and total amount of

energy to be delivered.

8.2 Obligations on Acceptance of Service

Acceptance of service by a Customer pursuant to a Service Agreement

under this Tariff commits the Customer and Bonneville both to the

provisions of this Tariff and to the terms of the individual Service

Agreement.

9. Billing

Bonneville shall bill in accordance with the billing information in

Appendix A, General Rate Schedule Provisions, or successor, or as they

may from time to time be revised.

10. Records

10.1 Recordkeeping Obligations

Bonneville and the Customer shall keep such records as may be

needed to afford a clear history of all transactions under this Tariff.

The originals of all such records shall be retained for a minimum of 2

years plus the current year (or such longer period as may be

appropriate and copies shall be delivered to the other party on

request.)

10.2 Customer's Right to Examine Records

The Customer shall have the right, during normal business hours, to

examine the accounting and other records for the last 2 calendar years

relating to its transactions under this Tariff and shall have the right

to make such audits and copies of records as it shall deem necessary or

desirable. Such examinations shall be at the Customer's expense and may

be conducted no more frequently than once every 2 years.

11. Liability and Indemnification

11.1 Western Interconnected Systems Agreement

If an Applicant is a party to the Western Interconnected Systems

Agreement Limiting Liability, such agreement shall continue in full

force and effect as between the parties to the extent that such

provisions may apply to the transactions contemplated by this Tariff.

11.2 No Western Interconnected Systems Agreement

If an Applicant is not a party to the Western Interconnected

Systems Agreement Limiting Liability and there is no other agreement on

file with the Commission governing liability and indemnification

between Bonneville and the Customer, then in such event additional

provisions for protection of electric generation facilities or

transmission facilities and liability and indemnification may be

required. Such additional provisions shall be set forth in the

Applicant's Service Agreement.

12. Creditworthiness

For the purpose of determining the ability of the Customer to meet

its obligations related to service hereunder, Bonneville may require

reasonable credit review procedures which may include, but shall not be

limited to, verification that the Customer is not operating under any

State or Federal bankruptcy laws, is not subject to the uncertainty of

pending liquidation or regulatory proceedings in State or Federal

courts, and no significant collection lawsuits or judgments are

outstanding which would seriously reflect upon the Customer's ability,

in Bonneville's determination, to remain solvent. In addition,

Bonneville may require the Customer to provide and maintain in effect

during the term of the Service Agreement, an unconditional and

irrevocable letter of credit as security to meet its responsibilities

and obligations under this Tariff or an alternative form of security

proposed by the Customer and acceptable to Bonneville that protects

Bonneville's Native Load Customers against the risk of nonpayment. Any

disputes over the terms of such security arrangements shall be subject

to the provisions of the Tariff.

13. Procedures to Resolve Transmission Complaints

Any complaint arising from an Application hereunder may be

resolved, at the Customer's discretion, by either:

(a) A voluntary dispute resolution process, which may include

mediation or arbitration or both, pursuant to the terms of a regional

transmission association governing agreement, or such other dispute

resolution rules as may be agreed to by Bonneville and the Customer; or

(b) A transmission complaint filed with the Commission.

Issued in Portland, Oregon, on February 17, 1995.

Jack Robertson,

Deputy Chief Executive Officer.

[FR Doc. 95-5816 Filed 3-8-95; 8:45 am]

BILLING CODE 6450-01-P