System Design Task Force Update of Planning Procedure 7 Development

1. System Design Task Force Update ofPlanning Procedure 7 Development Reliability Committee Meeting March 2005

2. Two Requirements 1. RTO Transmission Operating Agreement • Section 3.02: Rating Procedures shall be developed and placed into effect … • Section 3.06(a)(v): Each Participant Transmission Owner shall collaborate with the ISO with respect to: • the development of Rating Procedures • the establishment of ratings …

3. Two Requirements (Cont’d) 2. NERC Version 0 Reliability Standards • FAC-004-0: Each TO and GO shall document the methodology(ies) used to determine its electrical equipment and Facility Ratings • Documentation shall address Normal and Emergency ratings for specified equipment • Effective Date: April 1, 2005 (+ 30 days to respond to request)

4. Meeting the Requirements Create a new document (PP-7) that includes: • “Best Practices” approach to rating procedures and ISO/SDTF review of NX-9 rating data • roles/responsibilities of SDTF and ISO in each • CRPs rewritten as “Best Practices”, attached as appendices and maintained by SDTF Modify Operating Procedure 16: • Enforce existing requirements • Involve ISO (and SDTF) in establishing ratings

5. PTOs work with ISO through the SDTF to: Update and maintain the CRPs as a best-practices document Evaluate procedures and judge PTO exceptions to the best practices described in CRPs Accept or advocate for changes to exceptions in rating practices ISO’s Role: Maintain collection of latest PTO rating practices Document standards and assumptions used by PTOs Review PTO practices against updated CRPs Identify exceptions to accepted practices in CRPs Initiate SDTF review of exceptions Advocate for changes to unjustified exceptions Initiate improvements to gain consistency and maximize system capability Rating Procedure Collaboration(from 2004 Ratings Report)

6. Facility Ratings Collaboration(from 2004 Ratings Report) • NEPOOL Operating Procedure 16 (OP-16) • Ratings data supplied to ISO-NE via NX-9 forms • Now provides for limited review before implementation • Improvements Needed… • Revise OP16 requirements by requiring: • Mandatory inclusion of reason for rating change • Timely submission of data • Involve ISO (and SDTF) in establishing ratings by: • Evaluating ratings and supporting information • Initiating SDTF review as appropriate • Utilize “Best Ratings Practices” of PP-7 as reference point

7. Planning Procedure No. 7 Contents • Introduction • Scope • Players’ Responsibilities • Rating Procedures Development • Approach • Equipment to be rated • Ratings to be assigned • “Best Ratings Practices” development • Monitoring and evaluation of owner methodologies • Temporary ratings

8. Planning Procedure No. 7 (Cont’d) • Review of Facility Ratings • Approach • Review of ratings • Disagreements • Reference to TOA language • Appendices • Appendix A: General parameters • Appendix B-n: Individual equipment type rating methodologies

9. Timeline • 1st Draft of new PP-7 finished and posted to ISO-NE website by 4/1/05 – to include an update to any completely outdated sections (transformers) and add new sections (UG cable) • April – November 2005 update/enhance remaining sections, and review/accept exemptions • CRP rewrite complete by December 2005