Department of Water and Power

Department of Water and Power

of the City of Los Angeles

Open Access Transmission Tariff

Original Sheet No. - 230 -

Draft, February21, 2017

OPEN ACCESS

TRANSMISSION TARIFF

DRAFTING NOTE TO STAKEHOLDERS:

The February 21, 2017 tariff modifies the January 17, 2017 tariff with the following changes:

1.  Added Network Integration Transmission Service;

2.  Added generation redispatch;

3.  Added Section 2.0 Initial Allocation of Available Transfer Capability from the pro forma;

4.  Added LADWP’s negative pricing policy from the SP Prices for Real Power Loss Financial Settlement (06.20.2015) transmission business practice into the definition of Hourly Pricing Proxy in Schedules 4 and 9;

5.  Added to the LGIA and LGIP power factor requirements for non-synchronous generation; and

6.  Miscellaneous minor changes.

TABLE OF CONTENTS

I. COMMON SERVICE PROVISIONS - 10 -

1 Definitions - 10 -

1.1 Affiliate: - 10 -

1.2 Ancillary Services: - 10 -

1.3 Annual Transmission Costs: - 10 -

1.4 Application: - 11 -

1.5 Commission: - 11 -

1.6 Completed Application: - 11 -

1.7 Control Area: - 11 -

1.8 Curtailment: - 12 -

1.9 Delivering Party: - 12 -

1.10 Designated Agent: - 12 -

1.11 Direct Assignment Facilities: - 12 -

1.12 Eligible Customer: - 13 -

1.13 Facilities Study: - 14 -

1.14 Firm Point-To-Point Transmission Service: - 14 -

1.15 Good Utility Practice: - 14 -

1.16 Interruption: - 15 -

1.17 Load Ratio Share: - 15 -

1.18 Load Shedding: - 15 -

1.19 Long-Term Firm Point-To-Point Transmission Service: - 15 -

1.20 Native Load Customers: - 16 -

1.21 Network Customer: - 16 -

1.22 Network Integration Transmission Service: - 16 -

1.23 Network Load: - 16 -

1.24 Network Operating Agreement: - 17 -

1.25 Network Operating Committee: - 17 -

1.26 Network Resource: - 17 -

1.27 Network Upgrades: - 18 -

1.28 Non-Firm Point-To-Point Transmission Service: - 18 -

1.29 Non-Firm Sale: - 18 -

1.30 Open Access Same-Time Information System (OASIS): - 18 -

1.31 Pacific Prevailing Time or PPT: - 18 -

1.32 Part I: - 19 -

1.33 Part II: - 19 -

1.34 Part III: - 19 -

1.35 Parties: - 19 -

1.36 Point(s) of Delivery: - 19 -

1.37 Point(s) of Receipt: - 20 -

1.38 Point-To-Point Transmission Service: - 20 -

1.39 Power Purchaser: - 20 -

1.40 Pre-Confirmed Application: - 20 -

1.41 Preschedule Day: - 20 -

1.42 Receiving Party: - 21 -

1.43 Regional Transmission Group (RTG): - 21 -

1.44 Reserved Capacity: - 21 -

1.45 Service Agreement: - 21 -

1.46 Service Commencement Date: - 21 -

1.47 Short-Term Firm Point-To-Point Transmission Service: - 22 -

1.48 System Condition - 22 -

1.49 System Impact Study: - 22 -

1.50 Tariff: - 23 -

1.51 Third-Party Sale: - 23 -

1.52 Transmission Customer: - 23 -

1.53 Transmission Provider: - 23 -

1.54 Transmission Provider’s Monthly Transmission System Peak: - 23 -

1.55 Transmission Service: - 24 -

1.56 Transmission System: - 24 -

1.57 Unreserved Use: - 24 -

2 Renewal Procedures for Existing Firm Service Customers Error! Bookmark not defined.

2.1 Continuation of Service - 24 -

2.2 Competing Requests - 25 -

2.3 Prior Service Agreements - 27 -

3 Ancillary Services - 27 -

3.1 Scheduling, System Control and Dispatch Service: - 30 -

3.2 Reactive Supply and Voltage Control from Generation or Other Sources Service: - 30 -

3.3 Regulation and Frequency Response Service: - 31 -

3.4 Energy Imbalance Service: - 31 -

3.5 Operating Reserve - Spinning Reserve Service: - 31 -

3.6 Operating Reserve - Supplemental Reserve Service: - 31 -

3.7 Generator Imbalance Service: - 31 -

4 Open Access Same-Time Information System (OASIS) - 31 -

5 Municipal Tax Exempt Bonds - 32 -

5.1 Transmission Provider Own Facilities Financed by Tax Exempt and Tax Credit Bonds: - 32 -

5.2 Governmental Person Use Certificate - 33 -

6 Reciprocity - 35 -

7 Billing and Payment - 36 -

7.1 Billing Procedure: - 36 -

7.2 Interest on Unpaid Balances: - 37 -

7.3 Customer Default: - 37 -

8 Accounting for the Transmission Provider's Use of the Tariff - 39 -

8.1 Transmission Revenues: - 39 -

8.2 Study Costs and Revenues: - 39 -

9 Tariff and Rate Changes, Withdraw, and Reservation of Rights - 40 -

10 Force Majeure and Indemnification - 40 -

10.1 Force Majeure: - 40 -

10.2 Indemnification: - 41 -

11 Creditworthiness - 42 -

12 Dispute Resolution Procedures - 42 -

12.1 Internal Dispute Resolution Procedures: - 42 -

12.2 External Arbitration Procedures: - 42 -

12.3 Arbitration Decisions: - 43 -

12.4 Costs: - 44 -

12.5 Rights Under The Federal Power Act: - 44 -

II. POINT-TO-POINT TRANSMISSION SERVICE - 44 -

13 Nature of Firm Point-To-Point Transmission Service - 45 -

13.1 Term: - 45 -

13.2 Reservation Priority: - 45 -

13.3 Use of Firm Transmission Service by the Transmission Provider: - 48 -

13.4 Service Agreements: - 48 -

13.5 Transmission Customer Obligations for Facility Additions or Redispatch Costs: - 49 -

13.6 Curtailment of Firm Transmission Service: - 50 -

13.7 Classification of Firm Transmission Service: - 52 -

13.8 Scheduling of Firm Point-To-Point Transmission Service: - 54 -

14 Nature of Non-Firm Point-To-Point Transmission Service - 55 -

14.1 Term: - 55 -

14.2 Reservation Priority: - 56 -

14.3 Use of Non-Firm Point-To-Point Transmission Service by the Transmission Provider: - 57 -

14.4 Service Agreements: - 57 -

14.5 Classification of Non-Firm Point-To-Point Transmission Service: - 58 -

14.6 Scheduling of Non-Firm Point-To-Point Transmission Service: - 58 -

14.7 Curtailment or Interruption of Service: - 59 -

15 Service Availability - 62 -

15.1 General Conditions: - 62 -

15.2 Determination of Available Transfer Capability: - 62 -

15.3 Initiating Service in the Absence of an Executed Service Agreement: - 62 -

15.4 Obligation to Provide Transmission Service that Requires Expansion or Modification of the Transmission System, Redispatch or Conditional Curtailment: - 63 -

15.5 Deferral of Service: - 65 -

15.6 Other Transmission Service Agreements: - 66 -

15.7 Real Power Losses: - 66 -

16 Transmission Customer Responsibilities - 67 -

16.1 Conditions Required of Transmission Customers: - 67 -

16.2 Transmission Customer Responsibility for Third-Party Arrangements: - 68 -

17 Procedures for Arranging Firm Point-To-Point Transmission Service - 69 -

17.1 Application: - 69 -

17.2 Completed Application: - 70 -

17.3 Deposit for Long-Term Point-To-Point Transmission Service: - 72 -

17.4 Notice of Deficient Application: - 73 -

17.5 Response to a Completed Application: - 73 -

17.6 Execution of Service Agreement: - 74 -

17.7 Extensions for Commencement of Service: - 75 -

18 Procedures for Arranging Non-Firm Point-To-Point Transmission Service - 76 -

18.1 Application: - 76 -

18.2 Completed Application: - 76 -

18.3 Reservation of Non-Firm Point-To-Point Transmission Service: - 78 -

18.4 Determination of Available Transfer Capability: - 78 -

19 Additional Study Procedures For Firm Point-To-Point Transmission Service Requests - 79 -

19.1 Notice of Need for System Impact Study: - 79 -

19.2 System Impact Study Agreement and Cost Reimbursement: - 80 -

19.3 System Impact Study Procedures: - 81 -

19.4 Facilities Study Procedures: - 83 -

19.5 Facilities Study Modifications: - 85 -

19.6 Due Diligence in Completing New Facilities: - 85 -

19.7 Partial Interim Service: - 85 -

19.8 Expedited Procedures for New Facilities: - 86 -

19.9 Requirement to Meet Study Completion Deadline. - 87 -

20 Procedures if The Transmission Provider is Unable to Complete New Transmission Facilities for Firm Point-To-Point Transmission Service - 87 -

20.1 Delays in Construction of New Facilities: - 87 -

20.2 Alternatives to the Original Facility Additions: - 88 -

20.3 Refund Obligation for Unfinished Facility Additions: - 88 -

21 Provisions Relating to Transmission Construction and Services on the Systems of Other Utilities - 89 -

21.1 Responsibility for Third-Party System Additions: - 89 -

21.2 Coordination of Third-Party System Additions: - 89 -

22 Changes in Service Specifications - 90 -

22.1 Modifications On a Non-Firm Basis: - 90 -

22.2 Modification On a Firm Basis: - 92 -

23 Sale or Assignment of Transmission Service - 92 -

23.1 Procedures for Resale, Assignment or Transfer of Service: - 92 -

23.2 Limitations on Assignment or Transfer of Service: - 94 -

23.3 Information on Assignment or Transfer of Service: - 94 -

24 Metering and Power Factor Correction at Receipt and Delivery Points(s) - 94 -

24.1 Transmission Customer Obligations: - 94 -

24.2 Transmission Provider Access to Metering Data: - 95 -

24.3 Power Factor: - 95 -

25 Compensation for Transmission Service - 95 -

26 Stranded Cost Recovery - 96 -

27 Compensation for New Facilities and Redispatch Costs - 96 -

III. NETWORK INTEGRATION TRANSMISSION SERVICE - 96 -

Preamble - 96 -

28 Nature of Network Integration Transmission Service - 97 -

28.1 Scope of Service: - 97 -

28.1A Term of Service: - 97 -

28.2 Transmission Provider Responsibilities: - 98 -

28.3 Network Integration Transmission Service: - 99 -

28.4 Secondary Service: - 99 -

28.5 Real Power Losses: - 100 -

28.6 Restrictions on Use of Service: - 101 -

29 Initiating Service - 101 -

29.1 Condition Precedent for Receiving Service: - 101 -

29.2 Application Procedures: - 102 -

29.3 Technical Arrangements to be Completed Prior to Commencement of Service: - 108 -

29.4 Network Customer Facilities: - 109 -

30 Network Resources - 109 -

30.1 Designation of Network Resources: - 109 -

30.2 Designation of New Network Resources: - 110 -

30.3 Termination of Network Resources: - 111 -

30.4 Operation of Network Resources: - 113 -

30.5 Network Customer Redispatch Obligation: - 114 -

30.6 Transmission Arrangements for Network Resources Not Physically Interconnected With The Transmission Provider: - 114 -

30.7 Limitation on Designation of Network Resources: - 115 -

30.8 Use of Interface Capacity by the Network Customer: - 115 -

30.9 Network Customer Owned Transmission Facilities: - 115 -

31 Designation of Network Load - 116 -

31.1 Network Load: - 116 -

31.2 New Network Loads Connected With the Transmission Provider: - 116 -

31.3 Network Load Not Physically Interconnected with the Transmission Provider - 117 -

31.4 New Interconnection Points: - 118 -

31.5 Changes in Service Requests: - 118 -

31.6 Annual Load and Resource Information Updates: - 118 -

32 Additional Study Procedures For Network Integration Transmission Service Requests - 119 -

32.1 Notice of Need for System Impact Study: - 119 -

32.2 System Impact Study Agreement and Cost Reimbursement: - 120 -

32.3 System Impact Study Procedures: - 121 -

32.4 Facilities Study Procedures: - 123 -

33 Load Shedding and Curtailments - 124 -

33.1 Procedures: - 124 -

33.2 Transmission Constraints: - 125 -

33.3 Cost Responsibility for Relieving Transmission Constraints: - 125 -

33.4 Curtailments of Scheduled Deliveries: - 126 -

33.5 Allocation of Curtailments: - 126 -

33.6 Load Shedding: - 126 -

33.7 System Reliability: - 127 -

34 Rates and Charges - 128 -

34.1 Monthly Demand Charge: - 128 -

34.2 Determination of Network Customer's Monthly Network Load: - 128 -

34.3 Determination of Transmission Provider's Monthly Transmission System Load: - 129 -

34.4 Redispatch Charge: - 129 -

34.5 Stranded Cost Recovery: - 129 -

35 Operating Arrangements - 130 -

35.1 Operation under The Network Operating Agreement: - 130 -

35.2 Network Operating Agreement: - 130 -

35.3 Network Operating Committee: - 131 -

SCHEDULE 1 - 133 -

Scheduling, System Control and Dispatch Service - 133 -

SCHEDULE 2 - 135 -

Reactive Supply and Voltage Control from Generation or Other Sources Service - 135 -

SCHEDULE 3 - 137 -

Regulation and Frequency Response Service - 137 -

SCHEDULE 4 - 140 -

Energy Imbalance Service - 140 -

SCHEDULE 5 - 142 -

Operating Reserve - Spinning Reserve Service - 142 -

SCHEDULE 6 - 145 -

Operating Reserve - Supplemental Reserve Service - 145 -

SCHEDULE 7 - 148 -

Long-Term Firm and Short-Term Firm Point-To-Point - 148 -

SCHEDULE 8 - 150 -

Non-Firm Point-To-Point Transmission Service - 150 -

SCHEDULE 9 - 152 -

SCHEDULE 10 - 155 -

Generator Regulation and Frequency Response Service - 155 -

SCHEDULE 11 - 158 -

Unreserved Use of Transmission Service - 158 -

Real Power Losses - 160 -

ATTACHMENT A - 163 -

Form Of Service Agreement For Firm Point-To-Point Transmission Service - 163 -

ATTACHMENT A-1 - 168 -

Form Of Service Agreement For The Resale, Reassignment Or Transfer Of Long-Term Firm Point-To-Point Transmission Service - 168 -

ATTACHMENT B - 177 -

Form Of Service Agreement For Non-Firm Point-To-Point Transmission Service - 177 -

ATTACHMENT C - 179 -

Methodology To Assess Available Transfer Capability - 179 -

ATTACHMENT D - 189 -

Methodology for Completing a System Impact Study - 189 -

ATTACHMENT E - 198 -

Index Of Point-To-Point Transmission Service Customers - 198 -

ATTACHMENT F - 199 -

Service Agreement For Network Integration Transmission Service - 200 -

ATTACHMENT F, EXHIBIT 1 - 203 -

SPECIFICATIONS FOR NETWORK INTEGRATION TRANSMISSION SERVICE - 203 -

ATTACHMENT G - 206 -

Network Operating Agreement - 207 -

ATTACHMENT H - 223 -

Annual Transmission Revenue Requirement For Network Integration Transmission Service - 223 -

ATTACHMENT I - 224 -

Index Of Network Integration Transmission Service Customers - 224 -

ATTACHMENT J - 225 -

Procedures for Addressing Parallel Flows - 225 -

ATTACHMENT K - 226 -

Transmission Planning Process - 226 -

ATTACHMENT L - 227 -

Creditworthiness Procedures - 227 -

ATTACHMENT M - 230 -

Large Generator Interconnection Procedures - 230 -

I. COMMON SERVICE PROVISIONS

1  Definitions

1.1  Affiliate:

With respect to a corporation, partnership or other entity, each such other corporation, partnership or other entity that directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with, such corporation, partnership or other entity.