Transmission Outage Processing under the Transmission Operations Agreement of the RTO-NE

1. Transmission Outage Processingunder theTransmission Operations Agreement of the RTO-NE February 2005

2. ACRONYMS • RTO-NE = Regional Transmission Organization – New England • LCC = Local Control Center (previously Satellite) • PTO = Participating Transmission Owner • LTTOP = Long Term Transmission Outage Plan • FTR = Financial Transmission Right • OS = Outage Scheduler

3. PRESENTATION FORMAT • New “Categories” of Transmission Facilities • Long Term Transmission Outage Plan • New “Scheduling” of transmission outages for • Monthly FTR auction • Optional PTO request • Short Term Transmission Outage Processes • Transmission/Generation Outage Coordination • Analyses and communications • New practices for moving outages • New Annual Congestion Report

4. New Categories of Transmission Facilities • Category “A” – highest voltages, most critical facilities • Category “B” – similar to present OP#3 Appendix A lists of 115kV radial facilities • Local Area – below 69kV NOTE: Lists of Category A and B facilities posted for public

5. Category “A” Transmission Facilities • All circuits > 115kV except 115kV radials • All inter-Area ties (regardless of voltage) • All transformers that • Have 1 or more “A” facilities on low side • Require an “A” facility to come out with it • Equipment associated with an “A” facility • Breakers, disconnects • Relays, reclosing • Shunts, SVC, STATCOM • Series reactors/capacitors • PARs • SPS, etc.

6. Category “B” Transmission Facilities • All 115kV radials • All 69kV (except inter-Area ties) • All transformers that have 1 or more “B” and no “A” facilities on low side • Equipment associated with a “B” facility • Breakers, disconnects • Relays, reclosing • Shunts, SVC, STATCOM • Series reactors/capacitors • PARs • SPS, etc.

7. Local Area Transmission Facilities • All circuits < 69kV • All transformers with no “A” or “B” facilities on low side

8. Treatment of Categories • Full requirements of Long Term Plan, Scheduling and Short Term Outage requests apply to • Category A facilities • Category B facilities that affect generation • Category B facilities that do not affect generation will be submitted by LCCs to RTO-NE 24 hours prior to hour 0001 of the first outage day • Local Area facilities that affect generation processed using LCC and ISO OP-5 practices • Local Area facilities that do not affect generation are fully relegated to the LCCs

9. Long Term Transmission Outage Plan • One year’s worth of information • Monthly updates – Rolling 12 months • PTO Updates to LCC, LCC forwards to RTO-NE by 15th of month • ISO creates composite LTTOP and issues by the 1st of each month • Working with LCCs, RTO-NE initially accepts or identifies proposed modifications • PTOs, RTO-NE and LCCs coordinate final plan • Long Term Transmission Outage Plan – 2nd thru 12th month publicly posted (1st month covered by posting of short term transmission outages) • Outages that will now be “scheduled”, will be publicly posted with short term transmission outages

10. New Scheduling of Transmission Outages for the Monthly FTR Auction - Submittal • At least 2 months plus 10 bus. days prior to the Auction Month, RTO-NE reviews the LTTOP and notifies PTOs of outages that would be used for the FTR Auction • At least 2 months prior to the Auction Month, PTOs review outages and either • Apply to schedule the outage thru the traditional chain (LCC – Outage Scheduler – RTO-NE) or, • Move the outage to a later time frame

11. New Scheduling of Transmission Outages for the Monthly FTR Auction - Analysis • LCC and RTO-NE review and coordinate the outage • RTO-NE and LCCs - Control Area and Local reliability • RTO-NE, LCCs, PTOs and GENCOs – minimize congestion • Common sense • Economic analysis Note: Outage previously in LTTOP facilitates this analysis, otherwise time and study limited

12. New Scheduling of Transmission Outages for the Monthly FTR Auction – “Scheduled” • Within 10 bus. days of PTO/LCC submittal deadline for OS, RTO-NE, after analysis with LCC, we will either, • “Schedule” the outage or, • Propose changes – in which case the PTO, RTO-NE and LCC coordinate to achieve a date for scheduling outage • Outages Scheduled for the Monthly FTR Auction are • Designated in OS as “Scheduled-FTR” with status of “Interim Approval” • Posted with the short term outages for the public by RTO-NE

13. New Optional PTO Scheduling of Transmission Outages - Submittal • Applies to Outages not used for FTR Market • 60 to 21 days prior to start of outage the PTO may apply to schedule the outage thru the traditional chain (LCC – Outage Scheduler – RTO)

14. New Optional TO Scheduling of Transmission Outages - Analysis • LCC and RTO review and coordinate the outage • RTO and LCCs - Control Area and Local reliability • ISO, Satellites, PTOs and GENCOs – minimize congestion • Common sense • Economic analysis Note: Outage previously in LTTOP facilitates this analysis, otherwise time and study limited

15. New Optional TO Scheduling of Transmission Outages – “Scheduled” • Within 5 bus. days of submittal on the Outage Scheduler, RTO-NE, after coordination with LCC, we will either, • “Schedule” the outage or, • Propose changes – in which case the PTO, RTO-NE and LCC coordinate to achieve a date for scheduling outage • Outages Scheduled per request of a PTO are • Designated in OS as “Scheduled-TO” with status of “Interim Approval” • Posted with the short term outages for the public by RTO-NE

16. Relative Priority of Outages • In order to promote the firmness of Scheduled and Approved transmission outages, other outages (planned, submitted, study) should be moved before a scheduled or approved outage is moved. The order of firmness is: • Scheduled-FTR with Interim Approval status • Scheduled-TO with Interim Approval status • Short Term Outage with Approved status • Short Term Outage in the Study Mode • Short Term Outage in the Submitted Mode • Long Term Planned Outage

17. Short Term Transmission Outage Processes • No later than 72 hours prior to hour 0001 of the first day of an outage • PTO (LCC) will request approval of scheduled outages • PTO (LCC) must submit request for any outages not scheduled • No later than 24 hours prior to hour 0001 of the first day of the outage RTO-NE will either • Approve the outage, • Disapprove the outage or, • Propose changes – in which case the PTO, RTO-NE and LCC coordinate to achieve an acceptable plan within the original outage time • RTO has authority to wave either of the above deadlines • Short term outages are posted for public (with scheduled outages) by RTO-NE

18. PTO Ability to Change an Outage • PTO can propose change to any outage (Planned, Scheduled, Approved) via PTO-LCC-RTO chain • PTO must propose change promptly after circumstance develops and submit reason (RTO-NE Market Mitigation will pursue detail) • RTO-NE, after coordination with LCC, will either accept the change or coordinate with LCC and PTO to achieve an acceptable date. This coordinated work to move outages will be completed as follows • Planned Outage - within 30 days • FTR Scheduled Outage – 10 bus. Days • TO Scheduled Outage – 5 days • Approved Outage - ASAP

19. PTOs – What not to do • First, note that PTOs participate in FTR auctions • If a PTO buys FTRs and then submits an outage requiring such FTRs, this will be viewed as an exercising of Market Power

20. RTO-NE Authority to Change an Outage • RTO-NE can change any outage for reliability reasons • RTO-NE can change any outage to reduce congestion costs • As a general rule, net of congestion costs minus PTO cancellation costs must be at least $200K per week or portion of week • PTO and RTO-NE can agree to move outage for a lesser amount of congestion • Recent FERC directive gives RTO-NE unconditional authority

21. RTO-NE Authority to Change an Outage • Prompt RTO-LCC-PTO notification after circumstance develops (PTO can request detail) • RTO-NE will coordinate with LCC and PTO to achieve an acceptable date • Regarding “Scheduled” outages • Should be re-scheduled within 90 days of the original schedule or, • If re-schedule falls between June 1 and September 1, outage should/can be rescheduled by October 31 • PTO can recover cancellation costs when RTO-NE changes a Scheduled or Approved outage

22. Sample Reasons for Cancelling a Scheduled or Approved Outage • RTO-NE • Outage can not be taken reliably • Forced outage occurred • M/S2, OP4 • MR Units not available • Congestion Costs (as guided per TOA) • PTO • Severe weather prohibits work • Manpower unavailable for valid reasons • Diverted to Emergency work • Overbooking of crews not valid • Unanticipated safety issues • Parts not available for valid reasons • Vendor didn’t come thru valid but cancel as soon as known • Failure to order in timely fashion not valid

23. Annual Report on Outage Processing • RTO-NE, working with LCCs and PTOs, will prepare and issue an annual report on outage scheduling and coordination • Assess accuracy of inputs and calculation of congestion cost savings • Assess long term impacts of RTO-NE, LCC and PTO changes to outages • As possible identify possible opportunities to further minimize congestion costs

24. Preliminary Outline of Annual Report cont. • Included in the report: • Total number of outage requests submitted to OS per year • Number of each type of outage requests submitted to OS per year (scheduled, short-term, forced, emergency, etc.) • Number of times ISO or TO moved outages and why • Number of times job was scheduled and approved but did not take place and why • Impacts on FTR of scheduled jobs that did not take place • Identification and resolution of issues and improvements to the process • Recommendations for the following year