What’s New in Southern
Companies’ OATT
Southern Company Transmission
2008 Customer Forum
Background
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Order 890 issued on Feb. 16, 2007
890 compliance filings made on July 13, 2007
Attachment C filed on Sept. 11, 2007
Attachment K filed on Dec. 7, 2007
Order 890-A issued on Dec. 28, 2007
890-A compliance filings made on Mar 17, 2008
Order 890 and 890-A
• As a result of FERC Orders, our Tariff is
being updated frequently
– Since July 13 there have been 5 revisions
driven by Order 890 & 890-A
• At any time, the latest version is on our
OASIS at:
https://www.weboasis.com/OASIS/SOCO/INFO.HTM
• Topics to Cover
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Planning Redispatch and Conditional Firm Service
Rollover Rights
Attachment K
Unreserved Use Penalties
Attachment C
Business Practices
Performance and Study Metrics
Generator Imbalance Service
Creditworthiness
PR / CFS
• Order 890 modified Planning Redispatch
and created Conditional Firm Service
• For either to be studied, Customer must
select the option in the System Impact
Study agreement
• TP at its discretion, can offer a mix of PR
and CFS
PR / CFS
• Caveats
– Only available for Point-to-Point service
– Only an option for service of 2 years or more
– For customers unwilling to commit to
enhancements, PR and CFS will have a
biennial reassessment
– The “bridge” product for customers committed
to enhancements has no reassessment
PR / CFS
• TP required to provide both specific
conditions and number of hours for
customer to choose from
• CFS not available for network customers
• Still only allowed 60 days to perform a SIS
with PR and / or CFS options
PR / CFS
• Important takeaways
– PR and/or CFS must be selected by the
customer in the SIS agreement
– PR and CFS will only be offered if reliability is
not harmed
Rollover Rights
• Currently
– To exercise Rollover Rights, Customer must
have yearly service and request 60 days prior
to expiration of service
• Per Order 890
– Five-year term required to have rollover rights
– One-year notice provision
Rollover Rights
• When does this become effective?
– Effective upon acceptance of Attachment K
– Attachment K filed on Dec. 7, 2007
– To date, no Transmission Providers’
Attachment K has been accepted by FERC
Attachment K
• Coordinated, Open, and Transparent
Transmission Planning required as part of
Order 890
• Attachment K describes the Southeastern
Regional Transmission Planning Process
and the Southeast Inter-Regional Process
Attachment K
• Provides detail on how Southern
Companies intend on addressing the eight
planning principles:
- Coordination
- Openness
- Transparency
- Information Exchange
- Comparability
- Dispute Resolution
- Regional Participation
- Economic Planning Studies
Attachment K
• Southeastern Regional Planning Process
– Initiative started prior to Order 890
– Sponsors
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PowerSouth
Dalton Utilities
GTC
MEAG
SMEPA
Southern Company
– Currently have 40 registered participants
Attachment K
• Regional Planning Stakeholders Group
• Four meetings per year
• Next on June 25, 2008 - Preliminary
Expansion Plan
• Regional Planning Website:
http://www.southeasternrtp.com/
Attachment K
• Per section 1.2.1 – up to 5 economic
studies to be performed
– Stakeholders selected the following at the
March 5, 2008 meeting:
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1000 MW from Mobile, AL to Atlanta
1000 MW from Alabama to Florida
1000 MW from Entergy to Alabama
1000 MW from GA-ITS to SCPSA and SCEG
2000 MW from Entergy to GA-ITS
Attachment K
• Inter-Regional Planning Process
– Coordination with transmission systems
Provider is interconnected with.
– Inter-Regional Planning Website:
http://www.southeastirpp.com/
Unreserved Use Penalties
• Penalty charges developed by FERC in
Order 890 (P846)
– Penalty for single hour will be based on daily,
firm point-to-point service
– More than one assessment for a given
duration will increase the penalty period to the
next longest duration
Unreserved Use Penalties
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Per FERC
– P452 (890-A) - It is the obligation of the transmission customer, not the
transmission provider, to ensure that the customer has reserved the
transmission service that it uses.
– P447 (890-A) - The Commission declines to distinguish between
intentional and unintentional unreserved transmission uses and
reiterates that all unreserved uses will be subject to operational
penalties.
– P448 (890-A) - The Commission continues to believe that it would not
be appropriate to exempt any class of customers from unreserved use
penalties.
– P838 (890) – We will not limit unreserved use penalties to instances
where the unreserved use jeopardizes the reliable operation of the
transmission system.
Unreserved Use Penalties
• Penalty structure described in Business
Practices
– https://www.weboasis.com/OASIS/SOCO/BusinessPractices/So
uthern Company Transmission General Business Practices.pdf
Unreserved Use Penalties
• Annual Report for Penalty Assessments
posted on OASIS
– Penalties assessed on 8 Pt-Pt customers and
4 network customers
– For 2007 (July-Dec), $816,023.97 collected
• Report also includes how penalty will be
distributed
Attachment C
• Describes methodology to assess
Available Transfer Capability (“ATC”)
• Includes
– ATC algorithms
– Process Flow-Diagram
– Detailed TRM and CBM descriptions
Attachment C
• Southern Companies Attachment C filed
on Sept 11, 2007
• FERC Accepted with modification on
March 28, 2008
• Southern Companies made a compliance
filing on April 28, 2008
Business Practices
• Order 890 requires that all business
practices that relate to transmission
service be posted
• Southern Companies’ Business Practices
can be found in General Information
section of OASIS
https://www.weboasis.com/OASIS/SOCO/INFO.HTM
Business Practices
• Includes
– General Business Practices
• OASIS Registration
• Billing Practices
• Reservation and Scheduling Information
– CFS Tagging and Tracking
– Distribution of Penalties
– Procedures for Changing Business Practices
Performance Metrics
• 890 Requires the Transmission Provider to
make quarterly reports on performance
metrics
• Provides details on study agreements,
time to complete studies, etc.
• Differentiates between affiliate and nonaffiliate
Generator Imbalance Service
• Described in Schedule 10
– Charges for generator imbalances
– Description of incremental / decremental cost
• Attachment R
– Service Agreement Template for generator
imbalance
Generator Imbalance Service
• Questions about Generator Imbalance
service should be directed to:
Bryan Hill
Interconnections Project Mgr
205.257.3409
bkhill@southernco.com
Creditworthiness
• Attachment Q outlines the credit
worthiness requirements for conducting
business under our Tariff
• The Credit Manual (posted on OASIS)
provides additional implementation details
• These constitute our “Credit Policy”
Creditworthiness
• Attachment Q
– Credit Evaluation
– Unsecured Credit Line
– Eligible Collateral Requirements
– Total Credit Limit Amounts
– Communication with Applicants and
Customers