NITS Concepts

1. NITS Concepts • Contract Data Model: • NITS Agreement represented as a Contract • Contract has one or more Facilities • Facility may be one or more Resources or Loads • Load assigned unique SINK name: • Multiple SINKs defined to represent discreet load pockets if there are deliverability constraints • Resources assigned unique SOURCE name: • SOURCE may be discreet generator or a system purchase contract • Loads and Resources have multiple associated time-varying profiled data elements, e.g., load forecasts, designated capacity, unit Pmax, etc.

2. NITS Data Requirements • Contract: • Base Information: • Customer • Term • Eligibility Attestation • Load: • Base Information: • Name (SINK assigned by TP) • Description • Type (non-interruptible/interruptible) • Load Control Area • Point of Delivery • Profiles: • Load Forecast • Interruptible Capacity

3. NITS Data Requirements • Deliverability Constraints: • Only required if need to limit maximum scheduled MWs from specific Resource (SOURCE) to specific Load (SINK) • Similar to a TSR/TSN • ATC Impact Matrix: • Distribution Factor type representation of impact on ATC from SOURCE to SINK

4. NITS Data Requirements • Resource: • Base Information: • Name (SOURCE assigned by TP or GCA) • Description • Type (?) • Generating Control Area • Point of Receipt • Profiles: • Unit Size • Designated Capacity • Re-dispatch Cost • Dispatch Merit Order or Block Loading

5. NITS Transaction Concepts • Transaction Requirements: • Designate Resource (Capacity) • Undesignate Resource • Designate Load (Capacity) • Undesignate Load • Transaction Processing: • Transaction is a request to change Contract • On approval, changes are reflected in the Contract • Transaction itself does not represent the transmission service • Transaction log is audit record of designations, undesignations, etc.

6. NITS Transaction Concepts • Short Term Requests (daily, weekly, monthly): • Requests for additional Firm or Secondary Network service • Should these be handled as a TSR? • Special Transactions: • Similar in nature to Redirect with respect to ATC/AFC: • Redesignation of network resource • Undesignation with simultaneous request for PTP Service • Tag Processing: • Validations performed against the Contract not a TSR

7. Preemption and Competition • Concepts Influenced by BPA and MAPP • Issues to Address: • Duration and Pre-confirmation Priority • Conditional Service • Right of First Refusal • Identify Potential Challenger: • Fails AFC/ATC • Flat MW profile over entire duration of request • Preemption: • Unilaterally SUPERSEDE all pending requests of lower “priority” that enhance ability to offer service to higher priority request. • Introduces potential for gaming?

8. Preemption and Competition Continued • Competition • Identify all conditional reservations of lower priority that would enhance ability to offer service to higher priority request (Challenger) AND that could be accommodated if extended to match Challenger (Defenders). • Extend (partial) offer of service to Challenger. • If Challenger fails to confirm service, no action required. • If Challenger confirms service: • RECALL capacity “At Risk” from all Defenders to meet Challenger’s capacity • Issue MATCHING COUNTEROFFER requests to all Defender’s for ROFR • As each Defender confirms match, RECALL capacityfrom Challenger

9. Preemption and Competition Continued • Driving Principles • Secure higher priority service before initiating any recalls of lower priority reservations • Eliminate customer confusion on what is required to initiate ROFR by creating MATCHING request on Customer’s behalf • Ensure MATCHING requests are feasible, but not necessarily simultaneously feasible • Simultaneously infeasible MATCHING requests go to first to CONFIRM