RE: MAPP Transmission Customers, ,
 Per our discussion earlier.

Terri
---------------------- Forwarded by Terri Clynes/HOU/ECT on 12/14/2000 04:25 
PM ---------------------------


"Terry Harmel" <harmel@WAPA.GOV>@mapp.org on 11/02/2000 11:44:02 AM
Sent by: owner-rin@mapp.org
To: <John_Olsen@wr.com>
cc: <owner-rin@mapp.org>, <rin@mapp.org>, "Jim Croston" <Croston@WAPA.GOV>, 
"Ron Klinefelter" <KLINEFEL@WAPA.GOV>, "Lloyd Linke" <Lloyd@WAPA.GOV>, 
"Darrick Moe" <Moe@WAPA.GOV>, "Steve Sanders" <Sanders@WAPA.GOV> 
Subject: RE: MAPP Transmission Customers,


John,

Sorry for the delay in responding to your Email,  but I'll do my best to 
answer your questions.  Please keep in mind that my knowlege of MAPP's 
transmission charges are limited to what I have been told or read and if 
someone at MAPP has any additional information that would be helpful, they 
should respond or perhaps you could address your questions to them.

It appears that you may be confusing MAPP's "scheduling" fee with the S/D fee 
for the CA's - it is confusing that they call their's a scheduling fee also 
and there's two of them.  The CA's didn't charge their S/D fee in the past as 
that was the practice, but also MAPP was in the past telling CA's that they 
should/could NOT charge their S/D fee also.  I believe that it was for 
simplicity, based on the assumption that if no one charged that would be the 
same if all charged, as we were all members.    Clearly the language in Sched 
F now indicates that the transmission customer will pay MAPP's "Scheduling 
and Tariff Administration" fee and also the CA's S/D fee.

The following is an excerpt from MAPP tariff found on their Home page:

Ancillary Services are needed with transmission service to maintain 
reliability within and among the Control Areas affected by the transmission 
service.  The Contractor shall provide, and the Transmission Customer is 
required to purchase under this Tariff, (i) Scheduling and Tariff 
Administration and (ii) Reactive Supply and Voltage Control from Generation 
Sources.  In addition, the Transmission Customer shall schedule transmission 
service directly with the applicable Transmission Provider, and shall be 
subject to the Transmission Provider's charges for scheduling service, for 
each Transmission Provider system in which (i) the Transmission Customer's 
resource is located, (ii) the Transmission Customer's load is located, (iii) 
power is scheduled into the MAPP Region, and (iv) power is scheduled to leave 
the MAPP Region, provided that the Transmission Customer shall not be subject 
to more than one scheduling charge for a single system.
A Transmission Provider that is the local Control Area operator shall offer 
to provide through its individual open-access transmission tariff (either 
itself or through arrangements with other parties) the following Ancillary 
Services to a Transmission Customer serving load within the Transmission 
Provider's Control Area (i) Regulation and Frequency Response, (ii) Energy 
Imbalance, (iii) Operating Reserve - Spinning, and (iv) Operating Reserve - 
Supplemental.  The Transmission Customer serving load within the Transmission 
System is required to acquire these Ancillary Services from the local Control 
Area operator, from a third party, or by self-supply.
Sections 3.1 and 3.2 list the Ancillary Services offered under this Tariff.
3.1 Scheduling and Tariff Administration Service:  The rates and/or 
methodology are described in Schedule 1.
3.2 Reactive Supply and Voltage Control from Generation Sources Service:  The 
rates and/or methodology are described in Schedule 2.

In regards to the examples that you have listed, it would be my opinion that 
the act of reserving transmision does not result in a Scheduling and Dispatch 
fee, it is the actual Scheduling of the energy which would incur the charge.  
Transmission reserved but not scheduled on would not incur a charge.  If you 
were to schedule energy on the examples you have given, then a S/D fee would 
be charged against each of your examples..

If I can be of any more help, please let me know.

Thanks

Terry>> <John_Olsen@wr.com> 11/01/00 04:05PM >>>

Terry,

Excuse me for my ignorance but it is my understanding that the original
MAPP F rate included scheduling fees when transacting between MAPP members.
With MAPP F being extended to the border company's interconnects, again it
was my understanding that the border company would charge their scheduling
fee for any schedule that left/entered their control area as part of a MAPP
F request.

So that I am clear on what you are planning to do, could you please tell me
what charges WAPA would assess for the following examples.

1.  WR reserves transmission from OAHE to ShercoGen using MAPP F.
2.  WR reserves transmission from OAHE to KCPL.WR using MAPP F.
3.  WR reserves transmission from MILESCITY TO KCPL.WR using MAPP F.

Thank you in advance for clearing this issue up for me.

John
Energy Trader
Generation Services




                    "Terry
                    Harmel"              To:     
<Bruce.McIver@BCHydro.bc.ca>, <Dean.Luciuk@BCHydro.bc.ca>,
                    <harmel@WAPA.        <Lisa.Will@BCHydro.bc.ca>, 
<Michelle.Hiley@BCHydro.bc.ca>, <rin@mapp.org>
                    GOV>                 cc:     "Jim Croston" 
<Croston@WAPA.GOV>, "Ron Klinefelter"
                    Sent by:             <KLINEFEL@WAPA.GOV>, "Lloyd Linke" 
<Lloyd@WAPA.GOV>, "Darrick Moe"
                    owner-rin@map        <Moe@WAPA.GOV>, "Steve Sanders" 
<Sanders@WAPA.GOV>
                    p.org                Subject:     RE: MAPP Transmission 
Customers,


                    11/01/00
                    14:58






Bruce,

I'll try to answer your question and clarify our current policy.  As you
will recall, WAPA originally administered it's own tariff and transmission
was purchased directly from WAPA for all of our constrained paths.  There
wasn't a separate Scheduling and Dispatch fee assessed for transmission
purchased under the WAPA tariff, as this fee was built into the
transmission rate.  We posted ATC's for all of our constrained paths (Miles
City, SPC, SWPA (now AECI)) and MAPP Schedule F was not offered for energy
transfers into or out of the MAPP area.  WAPA did not charge a Scheduling
and Dispatch fee for transmission purchased under MAPP Schedule F, because
it was not a common practice by any of the MAPP members to do so.

 A FERC ruling required MAPP  to offer  MAPP Schedule F to Members and
non-members alike, and to eventually open up the use of MAPP F from border
to border, without the requirement to purchase transmission from the border
company. These were major changes, and they occurred in steps, with MAPP
initially offering service schedule F to everyone, then offering Service
Schedule F rates or the border company tariff across the constrained
interfaces, and finally using service schedule F for all transmission into,
out of, or through MAPP, if less than 2 years in duration. During the
transition, WAPA was still responsible for posting the constrained
interfaces, monitoring the flows and re-posting when required.   We charged
our Scheduling and Dispatch fee for all requests that used service Schedule
F to transition across the constrained interfaces, and continue to do so
today. Now the system has evolved where anyone can purchase MAPP schedule F
and MAPP F can be utilized to transfer e!
nergy into, across and out of the entire MAPP member system.  WAPA no
longer administers the constrained interfaces for short term transactions
and MAPP as the transmission provider is responsible for approving all
transmission requests (less then 2 years).  When that change took place,
MAPP was approached and asked to include the S/D fee as part of the MAPP
Schedule F service Fee but MAPP was unwilling to take on this
responsibility.  WAPA management therefore made the decision to start
separately charging a Scheduling and Dispatch fee for all service Schedule
F utilizing our transmission.  This was initially delayed, until we were
able to develop  the software necessary to implement a billing program
automatically..   If the software and programming had been available
earlier, WAPA would have assessed the fee earlier.  Now the programming is
in place and the decision was made to proceed.
I hope this answers your question.  Yes, we have always charged the S/D fee
for MAPP Schedule F transactions across our constrained interfaces but have
now expanded this fee to include all MAPP Schedule F OASIS requests into,
out of , or through our system whether they cross a constrained interface
or not.  The fee is per OASIS request per day and the fee is assessed to
the purchaser of the transmission.

If you have any additional questions, please feel free to call or Email.

Thank you

Terry


>>> "McIver, Bruce" <Bruce.McIver@BCHydro.bc.ca> 11/01/00 06:01AM >>>
I thought we were already getting charged this.

> ----------
> From:   Terry Harmel[SMTP:harmel@WAPA.GOV]
> Sent:   Tuesday, October 31, 2000 2:26 PM
> To:     rin@mapp.org
> Cc:     Jim Croston; Ron Klinefelter; Lloyd Linke; Darrick Moe; Steve
> Sanders
> Subject:     MAPP Transmission Customers,
>
> MAPP Transmission Customers,
>
> Effective Wednesday, November 1, 2000 @ 00:00 CST. Western Area Power
> Administration (Western), Upper Great Plains Region (UGPR) will begin
> charging the current Western UGPR "Scheduling, System Control and
Dispatch
> Service" charge, as outlined in Western's Open Access Transmission
Service
> Tariff, for all schedules into, out of, and across the WAUE/WAUW control
> areas utilizing MAPP Schedule F.
>
> If you have any questions about this change related to MAPP Schedule F,
> please contact MAPP Transmission Operations (651-632-8508, or
> transcoords@mapp.org).  For other questions related to this billing by
> Western, please contact Mr. Terry Harmel at 605-882-7541.
>
> Thankyou
>
kayne.coulter@enron.com, don.baughman@enron.com, patrick.hanse@enron.com