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EXAMPLE #1

EXAMPLE #1. DP&L. e. BUYER AND SELLER BOTH PURCHASE FIRM AND BUYER’S FIRM GETS CUT. e. Firm. NIPSCO. Firm. Cinergy. X. Wabash Valley. AEP. LG&E. Assumptions : 1. Seller sells 50 MW for delivery “Into Cinergy, Seller’s Daily Choice”

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EXAMPLE #1

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  1. EXAMPLE #1 DP&L e BUYER AND SELLER BOTH PURCHASE FIRM AND BUYER’S FIRM GETS CUT. e Firm NIPSCO Firm Cinergy X Wabash Valley AEP LG&E Assumptions: 1. Seller sells 50 MW for delivery “Into Cinergy, Seller’s Daily Choice” 2. Seller preschedules day-ahead by 11:00 a.m. CPT by notifying Buyer of source and designated interface, DP&L. Seller purchases Firm transmission from source in DP&L to DP&L/Cinergy interface. 3. Buyer puts in request for Firm transmission within 30 minutes of Seller’s notification and request is accepted and purchased by Buyer. Entergy is sinking in Cinergy. Hypothetical: On delivery day, Cinergy cuts Buyer’s Firm transmission. Results: Seller must move to another interface (either on Cinergy’s border (NIPSCO, LG&E, AEP. . .) or in Cinergy’s control area (Wabash) at which Buyer can receive energy such that energy can sink in Cinergy. Seller can require Buyer to purchase Non-Firm transmission (or Firm, if available) but each party will be responsible for any additional transmission costs incurred to reschedule to another delivery point. If Seller cannot reschedule and deliver, Seller will owe LDs to Buyer on Seller’s failure to deliver. Same Result If: 1. Seller’s generation gets cut. 2. Seller’s Firm transmission gets cut. 3. Seller’s Non-Firm transmission gets cut.

  2. EXAMPLE #2 DP&L BUYER PURCHASES NON-FIRM THOUGH FIRM WAS AVAILABLE, AND NON-FIRM GETS CUT. e e Firm NIPSCO Non-Firm Cinergy X Wabash Valley LG&E AEP Assumptions: 1. Seller sells 50 MW for delivery “Into Cinergy, Seller’s Daily Choice” 2. Seller preschedules day-ahead by 11:00 a.m. CPT by notifying Buyer of source and designated interface, DP&L. Seller purchases Firm transmission from source in DP&L to DP&L/Cinergy interface. 3. Buyer puts in request for Firm transmission within 30 minutes of Seller’s notification and receives response that Firm is available. Buyer purchases Non-Firm instead. Entergy is sinking in Cinergy. Hypothetical: On delivery day, Cinergy cuts Buyer’s Non-Firm transmission. Results: Seller’s obligation was met and Seller has no obligation to attempt to deliver to another interface. Curtailment was due to quality of transmission utilized by Buyer. Buyer will owe LDs to Seller on failure to receive (Definition Section 3C). Same Result If: 1. Following Seller’s notification regarding availability of next-day Firm transmission, Buyer fails to make a timely request for Firm transmission (Definition Section 3D). 2. Following Seller’s notification regarding availability of next-day Firm transmission, Buyer makes a timely request for Firm transmission, but fails within 15 minutes of receiving the transmission provider’s notice of rejection to notify Seller of same (Definition Section 3D).

  3. EXAMPLE #3 DP&L BUYER IS ATTEMPTING TO BRING PRODUCT OUTSIDE OF TRANSMISSION SYSTEM BORDER, AND PATH IS CUT. e e Non-Firm NIPSCO Firm LG&E Cinergy Firm X Wabash Valley AEP Assumptions: 1. Seller sells 50 MW for delivery “Into Cinergy, Seller’s Daily Choice” 2. Seller preschedules day-ahead by 11:00 a.m. CPT by notifying Buyer of source and designated interface, DP&L. Seller purchases Non-Firm transmission from source in DP&L to DP&L/Cinergy interface. Hypothetical: On delivery day, LG&E cuts Buyer’s path because of the Non-Firm transmission purchased upstream by Seller. Results: Seller’s obligation was met, and Seller has no obligation to attempt to deliver to another interface. The scheduled delivery was interrupted as a result of Buyer’s attempted delivery of the Product beyond Cinergy. Buyer will owe LDs to Seller on Buyer’s failure to receive (Definition Section 4A).

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