June 8, 2021 the Honorable Kimberly D. Bose Secretary Federal Energy
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June 8, 2021 The Honorable Kimberly D. Bose Secretary Federal Energy Regulatory Commission 888 First Street NE Washington, DC 20426 RE: Southwest Power Pool, Inc., Docket No. ER21-___ Submission of Network Integration Transmission Service Agreement and Network Operating Agreement Dear Secretary Bose: Pursuant to section 205 of the Federal Power Act, 16 U.S.C. § 824d, and section 35.13 of the Federal Energy Regulatory Commission’s (“Commission”) regulations, 18 C.F.R. § 35.13, Southwest Power Pool, Inc. (“SPP”) submits: (1) an executed Service Agreement for Network Integration Transmission Service (“Service Agreement”) between SPP as Transmission Provider and Western Area Power Administration - UGP (“WAPA”) as Network Customer (“Sixth Revised WAPA Service Agreement”); and (2) an executed Network Operating Agreement (“NOA”) among SPP as Transmission Provider, WAPA as Network Customer and Basin Electric Power Cooperative (“Basin”), Central Power Electric Cooperative, Inc. (“Central Power”), Corn Belt Power Cooperative (“Corn Belt”), East River Electric Power Cooperative, Inc. (“East River”), Missouri River Energy Services (“MRES”), Northwest Iowa Power Cooperative (“NIPCO”), NorthWestern Corporation (“NorthWestern”) and WAPA as Host Transmission Owners (“Sixth Revised WAPA NOA”).1 The Sixth Revised WAPA Agreements modify and supersede the Service Agreement and NOA among the Parties accepted by the Commission in Docket No. ER20-896-000.2 SPP is submitting this filing because 1 The Sixth Revised WAPA Service Agreement and Sixth Revised WAPA NOA are referred to collectively as the “Sixth Revised WAPA Agreements”, and SPP, WAPA, Basin, Central Power, Corn Belt, East River, MRES, NIPCO and NorthWestern are referred to as the “Parties.” The Sixth Revised WAPA Agreements are designated as “Sixth Revised Service Agreement No. 3126.” 2 See Sw. Power Pool, Inc., Letter Order, Docket No. ER20-896-000 (March 12, 2020) (“March Order”). The Service Agreement and NOA referenced in the March Order are referred to collectively as the “Fifth Revised WAPA The Honorable Kimberly D. Bose June 8, 2021 Page 2 the Sixth Revised WAPA Agreements include terms and conditions that do not conform to the standard form of service agreements set forth in the SPP Open Access Transmission Tariff (“SPP Tariff”).3 I. Description of the Sixth Revised WAPA Agreements Since the March Order, the Parties revised the Fifth Revised WAPA Service Agreement in Section 3.0 of Attachment 1 to make a name correction, and revised Appendix 3 to update the delivery points as a result of the Delivery Point Addition study 2021-February-1284. In addition, the Fifth Revised WAPA Service Agreement was updated to include changes to the pro forma Service Agreement approved by the Commission in Docket Nos. ER20-1687,4 ER20-26995 and ER20- 418.6 These changes conform to the pro forma Service Agreement. To facilitate these changes, the Parties executed the Sixth Revised WAPA Service Agreement, which is submitted herein with the Sixth Revised WAPA NOA. II. Non-Conforming Terms and Conditions The Sixth Revised WAPA Service Agreement retains the non-conforming terms and conditions without modification in Section 7.0; and Sections 8.5, 8.10, and 11.0 of Attachment 1 from the Fifth Revised WAPA Service Agreement.7 These non-conforming terms and conditions were accepted by the Commission in Agreements” and individually as the “Fifth Revised WAPA Service Agreement” and “Fifth Revised WAPA NOA.” 3 See Southwest Power Pool, Inc., Open Access Transmission Tariff, Sixth Revised Volume No. 1 at Attachment F (“pro forma Service Agreement”) and Attachment G (“pro forma NOA”), collectively “the pro forma Agreements.” 4 Sw. Power Pool, Inc., 171 FERC ¶ 61,272 (2020). Section 8.13 was added to Attachment 1 to add language regarding candidate incremental Long-Term Congestion Rights. 5 Sw. Power Pool, Inc., Letter Order, Docket No. ER20-2699-000 (Oct. 1, 2020). Appendix 1 was modified to list the service start date, service end date and firm transmission rights. 6 Sw. Power Pool, Inc., Letter Order, Docket No. ER20-418-000 (Feb. 6, 2020). Attachment 1, Section 8.4.1(b) was modified to change “Schedule 1-A” to “Schedule 1-A1”. 7 The non-conforming terms and conditions are highlighted in Exhibit No. SPP-1. The Sixth Revised WAPA NOA conforms to the pro forma NOA. The Honorable Kimberly D. Bose June 8, 2021 Page 3 the March Order.8 The Sixth Revised WAPA Service Agreement in Appendix 3 also adds the non-conforming reference “Notwithstanding Section 8.4.1 (d, f, g) of Attachment 1, Delivery Points in the Western Interconnect will be provided under Attachment AS of the SPP Tariff” for Delivery Points located in the Western Interconnect to clarify that the Ancillary Services required under the Sixth Revised WAPA Service Agreement are provided under Attachment AS of the SPP Tariff. III. Effective Date and Waiver SPP requests an effective date of June 1, 2021, for the Sixth Revised WAPA Agreements. To permit such an effective date, SPP requests a waiver of the Commission's 60-day notice requirement set forth at 18 C.F.R. § 35.3. Waiver is appropriate because the Sixth Revised WAPA Agreements are being filed within 30 days of the commencement of service.9 IV. Additional Information A. Information Required by Section 35.13 of the Commission’s Regulations, 18 C.F.R. § 35.13: (1) Documents submitted with this filing: In addition to this transmittal letter, SPP includes the following: (i) A clean copy of the Sixth Revised WAPA Agreements; (ii) A redlined copy of the Sixth Revised WAPA Agreements; and (iii) Exhibit No. SPP-1 – Highlighted pages of non-conforming terms and conditions in the Sixth Revised WAPA Agreements. (2) Effective Date: 8 See March Order. 9 See Prior Notice and Filing Requirements Under Part II of the Federal Power Act, 64 FERC ¶ 61,139, at 61,983-84, order on reh’g, 65 FERC ¶ 61,081 (1993) (the Commission will grant waiver of the 60-day prior notice requirement “if service agreements are filed within 30 days after service commences.”); see also 18 C.F.R. § 35.3(a)(2). The Honorable Kimberly D. Bose June 8, 2021 Page 4 As discussed herein, SPP respectfully requests that the Commission accept the Sixth Revised WAPA Agreements with an effective date of June 1, 2021. (3) Service: SPP is serving a copy of this filing on the Parties listed in the Sixth Revised WAPA Agreements. (4) Basis of Rate: All charges for the Sixth Revised WAPA Agreements will be determined in accordance with the SPP Tariff and the Sixth Revised WAPA Agreements. B. Communications: Any correspondence regarding this matter should be directed to: Justin A. Hinton Nicole Wagner Attorney Manager - Regulatory Policy Southwest Power Pool, Inc. Southwest Power Pool, Inc. 201 Worthen Drive 201 Worthen Drive Little Rock, AR 72223 Little Rock, AR 72223 Telephone: (501) 482-2468 Telephone: (501) 688-1642 [email protected] [email protected] Tessie Kentner Managing Attorney Southwest Power Pool, Inc. 201 Worthen Drive Little Rock, AR 72223 Telephone: (501) 688-1782 [email protected] V. Conclusion For all the foregoing reasons, SPP respectfully requests that the Commission accept the Sixth Revised WAPA Agreements with an effective date of June 1, 2021. Respectfully submitted, The Honorable Kimberly D. Bose June 8, 2021 Page 5 /s/ Justin A. Hinton Justin A. Hinton Attorney Southwest Power Pool, Inc. 201 Worthen Drive Little Rock, AR 72223 Telephone: (501) 482-2468 [email protected] Attorney for Southwest Power Pool, Inc. Exhibit No. SPP-1 Non-Conforming Language SERVICE AGREEMENT FOR NETWORK INTEGRATION TRANSMISSION SERVICE BETWEEN SOUTHWEST POWER POOL, INC. AND THE UNITED STATES OF AMERICA, ACTING BY AND THROUGH THE ADMINISTRATOR, WESTERN AREA POWER ADMINISTRATION, DEPARTMENT OF ENERGY, HEREINAFTER CALLED WESTERN-UGP, REPRESENTED BY THE OFFICER EXECUTING THIS CONTRACT, A DULY APPOINTED SUCCESSOR, OR A DULY AUTHORIZED REPRESENTATIVE 7.0 This Service Agreement shall not be assigned by either Party without the prior written consent of the other Party, which consent shall not be unreasonably withheld. However, except in the case of a Federal power marketing agency, either Party may, without the need for consent from the other, transfer or assign this Service Agreement to any person succeeding to all or substantially all of the assets of such Party. However, the assignee shall be bound by the terms and conditions of this Service Agreement. ATTACHMENT 1 TO THE NETWORK INTEGRATION TRANSMISSION SERVICE AGREEMENT BETWEEN SOUTHWEST POWER POOL AND WESTERN AREA POWER ADMINISTRATION, UPPER GREAT PLAINS REGION SPECIFICATIONS FOR NETWORK INTEGRATION TRANSMISSION SERVICE 8.5 Real Power Losses - Transmission The Network Customer shall be responsible for losses in accordance with Attachment M and Section 39.3 (e), Western-UGP Federal Service Exemption, of the Tariff. 8.10 Network Upgrade Charges Network upgrade charges shall be in accordance with Section 39.3 (e), Western-UGP Federal Service Exemption, of the Tariff. 11.0 Other Terms and Conditions Pursuant to Section 39.3(e) of the Tariff, Western-UGP retains the Available Transfer Capability from its Federal Power-Western-UGP in the Upper Missouri Zone (UMZ) to deliver to Statutory Load Obligations, which are not Network Loads of Western-UGP, located outside of the UMZ but within the Transmission Provider’s Transmission System in other Zone(s). These Statutory Load Obligations include various Public Power Districts (e.g. Nebraska Public Power District), Municipalities, and irrigation loads located in Nebraska. APPENDIX 3 WESTERN AREA POWER ADMINISTRATION DELIVERY POINTS Eastern Interconnection (On-System) Western Interconnection (Off-System) Delivery Point Name Ownership Voltage Co- (kV) Supplier Delivery Points on Big Horn County Electric Cooperative (Big Horn) Facilities 1/ Big Horn County Electric Cooperative - Big Horn via Big Horn 230 BPA Big Horn facilities Crow via Big Horn facilities Big Horn 230 Big Horn 1/ Notwithstanding Section 8.4.1 (d, f, and g) of Attachment 1, Delivery Points in the Western Interconnect will be provided under Attachment AS of the SPP Tariff.