Background Assumptions:
· Redirects may be made from both Long Term and Short Term parent reservations. (Dynegy Power Marketing, Inc. v. Southwest Power Pool, Inc., 97 FERC ¶ 61,340 (2001) (Dynegy 2001 Order).
· Redirects may be redirected (see Dynegy 2001 Order).
· Capacity is reinstated to a parent reservation (actually never left) when a short-term Redirect request with “Conditional” status loses its capacity due to competition/preemption because a customer does not lose its capacity on the Parent reservation until: (1) the reservation is accepted by the transmission provider; (2) it is confirmed by the transmission customer; and (3) it passes the conditional reservation deadline under section 13.2. (Entergy Services, Inc., 143 FERC ¶ 61,143 (2013) and Dynegy Power Marketing, Inc. v. Southwest Power Pool, Inc., 99 FERC ¶ 61,054 (2002)).
· A Resale may be redirected (NAESB standards permit this).
Questions:
1. Are firm Redirect requests from parent reservations that remain Conditional (i.e., still subject to preemption) permissible?
If so, is Staff’s position that such Redirects have to be permitted or could NAESB adopt a standard that prevents Redirects from Conditional parent reservations (i.e., until such reservations are Unconditional)?
Observations:
OATT Section 22.2 does not address the “Conditionality” status of a reservation, but it assumes that there is a Service Agreement listing the POR and POD in existence. This assumption is erroneous for short term firm service, as there is no Service Agreement that lists a POR and POD for short-term firm service. But, the provision implies that a short-term firm reservation must be Unconditional before it may redirected (i.e., there is a final binding contract in place). A reservation thus should not be permitted to seek to be redirected until it becomes Unconditional. Moreover, allowing such a redirect creates serious implementation issues as reflected in the questions below:
2. Assuming a transmission provider must permit a Redirect of a short-term firm parent reservation with a Conditional status, what happens if the parent reservation is preempted? Is the redirect request, which is also in a Conditional status, also preempted because the customer has no short-term firm service to redirect?
3. Assuming a transmission provider must permit a Redirect of a short-term firm reservation with a Conditional status, explain how the following scenario would be addressed:
Reservation Number / Request Type / Long Term/ Short Term / Conditionality / ATC Retained on Path[1] /1 / Original / LT / Unconditional / Yes
2 / Redirect of Reservation 1 / ST / Conditional / Yes
3 / Redirect of Reservation 2 / ST / Conditional / Yes
4 / Resale of Reservation 3 / ST / Conditional / N/A
(only scheduling rights)
5 / Redirect of Reservation 3/4 / ST / Conditional / Yes
What happens above (all reservations are confirmed and for same number of MW and all tied to parent reservation, but none are for the remainder of the term of reservation 1): if Customer A opts not to match a competing request or is preempted by a longer-term request as to Reservation 2? What should be done about Reservations 3, 4, & 5?
2
[1] ATC is being held on paths for reservations 1, 2, 3, and 5.