Midwest ISO
FERC Electric Tariff, Fourth Revised Volume No. 1
Second Revised Service Agreement No. 1628
Superseding First Revised Service Agreement No. 1628
PUBLIC VERSION
EXECUTION COPY
DUANE ARNOLD ENERGY CENTER
AMENDED AND RESTATED
GENERATOR INTERCONNECTION AGREEMENT
Between
ITC MIDWEST LLC
And
FPL ENERGY DUANE ARNOLD, LLC
Issued by: Stephen G. Kozey
Issued on: April 15, 2009
Effective Date: March 24, 2009
OriginalSheetNo. I
DUANE ARNOLD ENERGY CENTER
AMENDED AND RESTATED GENERATOR INTERCONNECTION
AGREEMENT (GIA)
Between
ITC MidwestLLC
And
FPL ENERGY DUANE ARNOLD, LLC
DATED AS oF l4arch-'Lrlt4' "2009
Orieinal SheetNo. 2
GENERATOR INTERCONNECTION
AGREEMENT ("GIA")
(Applicable to Generating Facilities that exceed20 MW)
THIS AMENDED AND RESTATED GENERATOR INTERCONNECTION
AGREEMENT ("GIA") is made and enteredinto thisZ{Tay of March 200g,by and between
FPL Energy Duane Arnold, LLC, a limited liability company organizedand existing under the
laws of the State/Commonwealthof Delaware ("Interconnection Customer" with a Large
GeneratingFacility), ITC Midwest LLC, a limited liability company organizedand existing
under the laws of the State/Commonwealthof Michigan ("Transmission Owner"), and the
Midwest Independent Transmission System Operatorr lnc., a non-profit, non-stock
corporationorganizedand existing under the laws of the Stateof Delaware,("Transmission
Provider"). InterconnectionCustomer,Transmission Owner and TransmissionProvider each
may be referredto as a "Party," or collectively as the "Parties."
RECITALS
WHEREAS, the GeneratingFacility (defined herein) is an existing generatingplant that
is interconnectedwith the transmissionfacilities of the TransmissionOwner; and
WHEREAS, the GeneratingFacility has planned a capacity increasewhich was analyzed
in accordancewith TransmissionProvider'sTariff.
NOW, TIIEREFORE,
herein,it is agreed:
in considerationof and subject to the mutual covenantscontained
Orisinal SheetNo. 3
ARTICLE 1. DEFINITIONS
When used in this GIA, terms with initial capitabzationthat are not defined in Article 1
shall have the meaningsspecified in the Article in which they are used. Those capitalizedterms
used in this GIA that are not otherwise defined in this GIA have the meaning set forth in the
Tariff.
Adverse System Impact shall mean the negative effects due to technical or operational
limits on conductorsor equipmentbeing exceededthat may compromise the safety and
reliability of the electric system.
Affected System shall mean an electric transmissionor distribution system or the electric
system associatedwith an existing generatingfacility or of a higher queued GeneratingFacility,
which is an electric systemother than the Transmission Systemthat may be affected by the
Interconnection Request. An Affected Systemmay or may not be subject to FERC jurisdiction.
Affected System Operator shall mean the entity that operatesan Affected System.
Affiliate shall mean,with respectto a corporation,partnership or other entity, each such
other corporation, partnershipor other entity that directly or indirectly, through one or more
intermediaries,controls, is controlled by, or is under common control with, such corporation,
partnership or other entity.
Ancillary Services shall mean those servicesthat are necessaryto support the
transmission of capacity and energy from resourcesto loads while maintaining reliable operation
of the TransmissionSystemin accordancewith Good Utility Practice.
Applicable Laws and Regulations shall mean all duly promulgated applicable federal,
stateand local laws, regulations,rules,ordinances,codes,decrees,judgments,directives,or
judicial or administrative orders,permits and other duly authorized actions of any Governmental
Authority having jurisdiction over the Parties,their respectivefacilities and/or the respective
servicesthey provide.
Applicable Reliability Council shall mean the reliability council of NERC applicable to
the Local Balancing Authority of the Transmission Systemto which the GeneratingFacility is
directly interconnected.
Appticable Reliability Standards shall mean Reliability Standardsapprovedby the
Federal Energy Regulatory Commission (FERC) under section 215 of the Federal Power Act
relating to operation of the TransmissionProvider in carrying out its Reliability Coordinator,
Balancing Authority, Market Operator,Transmission Service Provider, and Planning
Coordinator functions. In addition to FERC approvedstandardsany regional reliability criteria
and/or standardsrelating to operation of the TransmissionProvider in carrying out the functions
listed above.
Asset Sale Agreement shall mean that certain Asset Sale Agreement dated as of July 2,
2005by and between FPL Energy Duane Amold, LLC and InterstatePower and Light Company.
Original SheetNo. 4
Base Caseshall meanthe basecasepower flow, short circuit, and stability databases
used for the Interconnection Studiesby the TransmissionProvider or InterconnectionCustomer.
Breach shall mean the failure of a Party to perform or observe any material term or
condition of this GIA.
Breaching Party shall mean aParty that is in Breachof this GIA.
BusinessDay shall mean Monday through Friday, excludingFederalHolidays.
Calendar Day shall mean any day including Saturday,Sundayor a FederalHoliday.
Commercial Operation shall mean the statusof a GeneratingFacility that has
commencedgeneratingelectricity for sale, excluding electricity generatedduring Trial
Operation.
Commercial Operation Date of a unit shall mean the dateon which the Generating
Facility commencesCommercial Operation as agreedto by the Partiespursuantto Appendix G
to this GIA.
Confidential Information shall mean any proprietary or commercially or competitively
sensitive information, trade secretor information regarding a plan, specification, pattem,
procedure,design,device, list, concept,policy or compilation relating to the presentor planned
businessof a Party,or any other information as specifiedin Article 22,whichis designatedas
confidential by the Party supplying the information, whether conveyed orally, electronically, in
writing, through inspection, or otherwise, that is received by anotherParty.
Default shall mean the failure of a Breaching Party to cure its Breach in accordancewith
Article 17 of this GIA.
Demonstrated Capability shall mean the continuous net real power output that the
GeneratingFacility is required to demonstratein compliance with Applicable Reliability
Standards.
Dispute Resolution shall mean the procedurefor resolution of a dispute between or
among the Partiesin which they will first attemptto resolve the dispute on an informal basis.
Distribution System shall mean the TransmissionOwner's facilities and equipment, or
the Distribution Systemof anotherparty that is interconnectedwith the Transmission Owner's
Transmission System,if any, connectedto the Transmission System,over which facilities
transmissionserviceor Wholesale Distribution Serviceunder the Tariff is available at the time
the IntercorurectionCustomerhas requestedinterconnectionof a GeneratingFacility for the
purpose of either transmitting electric energy in interstatecommerce or selling electric energy at
wholesale in interstatecommerce and which are used to transmit electricity to ultimate usage
points such as homes and industries directly from nearby generatorsor from interchangeswith
higher voltage transmissionnetworks which transportbulk power over longer distances. The
voltage levels at which distribution systemsoperatediffer among Local Balancing Authorities
and other entities owning distribution facilities interconnectedto the Transmission System.
Original SheetNo. 5
Distribution Upgrades shall meanthe additions,modifications,and upgradesto the
Distribution Systemat or beyond the Point of Interconnectionto facilitate interconnectionof the
GeneratingFacility and render the delivery service necessaryto effect Interconnection
Customer's wholesale sale of electricity in interstatecommerce. Distribution Upgradesdo not
include InterconnectionFacilities.
Effective Date shall mean the date on which this GIA becomeseffective upon execution
by the Parties subject to acceptanceby the Commission,.or if filed unexecuted,upon the date
specifiedby the Commission.
Emergency Condition shall meana condition or situation: (1) that in the reasonable
judgment of the Party making the claim is imminently likely to endanger,or is contributing to
the endangermentof, life, property, or public health and safety or (2) that, in the caseof either
Transmission Provider or TransmissionOwner, is imminently likely (as determinedin a nondiscriminatory manner) to causea material adverseeffect on the security of, or damageto the
TransmissionSystem,TransmissionOwner's InterconnectionFacilities or the electricsystemsof
others to which the Transmission Systemis directly connected;or (3) that, in the caseof
Interconnection Customer, is imminently likely (as determinedin a non-discriminatory manner)
to causea material adverseeffect on the security of, or damageto, the GeneratingFacility or
Interconnection Customer's InterconnectionFacilities. Systemrestoration and blackstart shall be
consideredEmergency Conditions; provided that Interconnection Customeris not obligated by
this GIA to possessblackstart capability. Any condition or situation that results from lack of
sufficient generatingcapacity to meet load requirementsor that results solely from economic
conditions shall not constitute an EmergencyCondition, unless one of the enumeratedconditions
or situations identified in this definition also exists.
Energy Resource Interconnection Service (ER Interconnection Service) shall mean
an Interconnection Service that allows the Interconnection Customerto connect its Generating
Facility to the Transmission Systemor Distribution System, as applicable, to be eligible to
deliver the Generating Facility's electric output using the existing firm or non-firm capacity of
the Transmission System on an as availablebasis. Energy ResourceInterconnection Service
does not convey transmission service.
Engineering & Procurement (E&P) Agreement shall mean an agreementthat
authorizesthe Transmission Owner to begin engineeringand procurement of long lead-time
items necessaryfor the establishmentof the interconnectionin order to advancethe
implanentation of the InterconnectionRequest.
Environmental Law shall mean Applicable Laws or Regulationsrelating to pollution or
protection of the environment or natural resources.
Federal Holiday shall mean a FederalReserveBank holiday for a Party that has its
principal place of businessin the United Statesand a CanadianFederal or Provincial banking
holiday for a Party that has its principal place of businesslocated in Canada.
Federal Power Act shall meanthe FederalPower Act, as amended,l6 U.S.C. $$ 791a
et seq.
Orieinal SheetNo. 6
FERC shall mean the Federal Energy Regulatory Commission, also known as
Commission,or its successor.
Force Majeure shall mean any act of God, labor disturbance,act of the public enemy,
war, insurrection, riot, fire, storm or flood, explosion, breakageor accidentto machinery or
equipment, any order, regulation or restriction imposedby governmental,military or lawfully
establishedcivilian authorities,or any other causebeyond a Party's control. A Force Majeure
event does not include an act of negligenceor intentional wrongdoing by the Party claiming
Force Majeure.
Generating Facilify shall mean InterconnectionCustomer'sdevice(s)for the production
of electricity identified in the InterconnectionRequest,but shall not include the Interconnection
Customer'slnterconnectionFacilities.
Generating Facility Capacity shall meanthe net capacityof the GeneratingFacility and
the aggregatenet capacity of the GeneratingFacility where it includes multiple energy
production devices.
Generator Interconnection Agreement (GIA) shall mean the form of interconnection
agreement,set forth in Appendix 6 to theseGeneratorInterconnectionProcedures.
Generator Interconnection Procedures (GIP) shall meanthe interconnection
proceduresset forth herein.
Generator Upgrades shall mean the additions,modifications,andupgradesto the
electric system of an existing generatingfacility or of a higher queuedGeneratingFacility at or
beyond the Point of Interconnectionto facilitate interconnectionof the GeneratingFacility and
rsnder the transmissionservicenecessarvto affect InterconnectionCustomer's wholesale sale of
electricity in interstatecommerce.
Good Utility Practice shall mean any of the practices,methodsand acts engagedin or
approvedby a significant portion of the electric industry during the relevant time period, or any
of the practices,methods and actswhich, in the exerciseof reasonablejudgment in light of the
facts known at the time the decision was made, could have been expectedto accomplish the
desiredresult at a reasonablecost consistentwith good businesspractices,reliability, safety and
expedition. Good Utility Practiceis not intended to be limited to the optimum practice, method,
or act to the exclusion of all others,but rather to be acceptablepractices,methods, or acts
generally acceptedin the region.
Governmental Authority shall mean any federal, state,local or other govemmental
regulatory or administrative agency, court, commission, departrnent,board, or other
govemmental subdivision, legislature, rulemaking board, tribunal, or other govemmental
authority having jurisdiction over the Parties,their respectivefacilities, or the respective services
they provide, and exercising or entitled to exerciseany administrative, executive, police, or
taxing authority or power; provided, however, that such term doesnot include Interconnection
Customer. TransmissionProvider. Transmission Owner. or anv Affiliate thereof.
Orieinal SheetNo. 7
Group Study(ies) shall mean the processwhereby more than one Interconnection
Requestis studied together, insteadof serially, for the purposeof conducting one or more of the
requiredStudies.
Hazardous Substancesshall mean any chemicals,materialsor substancesdefinedas or
included in the definition of "hazardoussubstances,""hazardouswastes," "hazardousmaterials,"
"hazardousconstituents," "restricted hazardousmaterials," "extremely hazardoussubstances,"
"toxic substances,""radioactivesubstances,""contaminants,""pollutantsr""toxic pollutants"or
words of similar meaning and regulatory effect under any applicable Environmental Law, or any
other chemical, material or substance,exposureto which is prohibited, limited or regulatedby
any applicable Environmental Law.
Initial Synchronization Date shall mean the date upon which the GeneratingFacility is
initially synchronizedand upon which Trial Operation begins.
In-Service Date shall mean the date upon which the Interconnection Customer
reasonablyexpectsit will be ready to begin use of the TransmissionOwner's Interconnection
Facilities to obtain backfeedpower.
Interconnection Customer shall mean any entity, including the TransmissionProvider,
Transmission Owner or any of the Affiliates or subsidiariesof either, that proposesto
interconnectits GeneratingFacility with the Transmission System.
Interconnection Customer's Interconnection Facilities shall mean all facilities and
equipment,as identified in Appendix A of this GIA, that are located between the Generating
Facility and the Point of Changeof Ownership, including any modification, addition, or upgrades
to such facilities and equipment necessaryto physically and electrically interconnectthe
GeneratingFacility to the Transmission Systemor Distribution System, as applicable.
Interconnection Customer's InterconnectionFacilities are sole use facilities.
Interconnection Facilities shall mean the TransmissionOwner's Interconnection
Facilities and the InterconnectionCustomer'sInterconnectionFacilities. Collectively,
Interconnection Facilities include all facilities and equipmentbetween the GeneratingFacility
and the Point of Interconnection,including any modification, additions or upgradesthat are
necessaryto physically and electrically interconnectthe GeneratingFacility to the Transmission
System. InterconnectionFacilities shall not include Distribution Upgrades,GeneratorUpgrades,
StandAlone Network Upgradesor Network Upgrades.
Interconnection Facilities Study shall mean a study conductedby the Transmission
Provider, or its agent, for the lnterconnection Customerto determine a list of facilities (including
Transmission Owner's InterconnectionFacilities, SystemProtection Facilities, and if such
upgradeshave been determined,Network Upgrades,Distribution Upgrades, GeneratorUpgrades,
and upgradeson Affected Systems,as identified in the Interconnection System Impact Study),
the cost of those facilities, and the time required to interconnectthe GeneratingFacility with the
Transmission System.
Orisinal SheetNo. 8
Interconnection Facilities Study Agreement shall meanthe form of agreement
containedin Appendix 4 of the GeneratorInterconnection Proceduresfor conducting the
InterconnectionF acilities Study.
Interconnection Feasibility Study shall mean a preliminary evaluation of the system
impact of interconnectingthe GeneratingFacility to the Transmission System.
Interconnection Request shall mean an InterconnectionCustomer'srequest,in the form
of Appendix I to the GeneratorInterconnectionProcedures,to interconnecta new Generating
Facility, or to increasethe capacity of, or make a Material Modification to the operating
characteristicsof, an existing GeneratingFacility that is interconnectedwith the Transmission
System.
Interconnection Service shall mean the service provided by the Transmission Provider
associatedwith interconnectingthe GeneratingFacility to the TransmissionSystem and enabling
it to receive electric energy and capacity from thd GeneratingFacility at the Point of
Interconnection,pursuant to the terms of this GIA and, if applicable, the Tariff.
Interconnection Study shall mean any of the studies describedin the Generator
InterconnectionProcedures.
Interconnection Study Agreement shall mean the form of agreementcontained in
Attachment B to Appendix 1 of the GeneratorInterconnection proceduresfor conducting all
studiesrequired by the GeneratorInterconnectionProcedures.
Interconnection System Impact Study shall mean an engineeringstudy that evaluates
the impact of the proposedinterconnectionon the safety and reliability of Transmission System
and, if applicable, an Affected System. The study shall identiff and detail the systemimpacts
that would result if the GeneratingFacility were interconnectedwithout project modifications or
systemmodifications, focusing on the Adverse System Impacts identified in the Interconnection
Feasibility Study, or to study potential impacts, including but not limited to those identified in
the Scoping Meeting as describedin the Generatorlnterconnection Procedures.
IRS shall mean the Internal RevenueService.
Local Balancing Authority shall mean an operational entity or a Joint Registration
Organizationwhich is (i) responsiblefor compliance with the subsetof NERC Balancing
Authority Reliability Standardsdefined in the Balancing Authority Agreement for their local
areawithin the Midwest ISO Balancing Authority Area, (ii) a Party to Balancing Authority
Agreement, excluding the Midwest ISO, and (iii) shown in Appendix A to the Balancing
Authority Agreement.
Loss shall mean any and all damages,losses,claims, including claims and actions
relating to injury to or death of any person or damageto property, demand,suits, recoveries,
costsand expenses,court costs,attorney fees, and all other obligations by or to third parties,
Orieinal SheetNo. 9
arising out of or resulting from the other Party's performance,or non-performanceof its
obligationsunder this GIA on behalf of the indemniffing Party,exceptin casesof gross
negligence or intentional wrongdoing, by the indemnified party.
Material Modification shall mean those modifications that have a material impact on the
cost or timing of any InterconnectionRequestwith alater queuepriority date.
Metering Equipment shall mean all metering eqtipment installed or to be installed at
the GeneratingFacility pursuantto this GIA at the metering points, including but not limited to
instrument transformers,MWh-meters, data acquisition equipment,transducers,remote terminal
unit, communications equipment,phone lines, and fiber optics.
NERC shall mean the North American Electric Reliability Corporation or its successor
organization.
Network Customer shall have that meaning as provided in the Tariff.
Network Resourceshall mean any designatedgeneratingresourceowned,purchased,or
leasedby a Network Customerunder the Network Integration Transmission ServiceTariff.
Network Resourcesdo not include any resource,or any portion thereof, that is committed for
sale to third parties or otherwise cannot be called upon to meet the Network Customer's Network
Load on a non-internrptible basis.
Network ResourceInterconnection Service (NR Interconnection Service) shall mean
an Interconnection Service that allows the InterconnectionCustomerto integrate its Generating
Facility with the Transmission Systemin the samemanner as for any GeneratingFacility being
designatedas a Network Resource.Network ResourceInterconnection Service does not convey
transmissionservice.
Network Upgrades shall mean the additions, modifications, and upgradesto the
Transmission Systemrequired at or beyond the point at which the InterconnectionFacilities
connectto the Transmission System or Distribution System,as applicable, to accommodatethe
interconnection of the GeneratingFacility to the Transmission System.
Notice of Dispute shall mean a written notice of a disputeor claim that arisesout of or in
connection with this GIA or its performance.
NRC shall mean the Nuclear Regulatory Commission, or its successor.
NRC Maintenance Rule shall mean the NRC regulations goveming the maintenanceof
the Generating Facility, at l0 C.F.R. $ 50.65, and commitments to which Interconnection
Customer is subject as of the Effective Date.
NRC Operating License shall mean NRC Operating License No. DPR-49.
Original SheetNo. 10
NRC Requirements and Commitments shall mean all the requirements,obligations,
duties, and commitments required to be followed and honored by Interconnection Customer
pursuant to the Atomic Energy Act of 1954, the regulations of the NRC, the Generating
Facility's operatinglicenseand nuclearmaterialslicenses,as amendedor superseded.
Off-site Power Supply Service shall mean all servicesnecessaryto permit the supply of
Electricity (excluding ancillary services) to the GeneratingFacility in accordancewith the terms
of this LGIA, and the applicable tariff.
Off-site Power Supply Points shall meanthe points at which Off-site Power Supply
Serviceis suppliedby TransmissionOwner to lnterconnectionCustomeras indicatedin Appendix
A.
Optional Interconnection Study shall meana sensitivityanalysisbasedon assumptions
specified by the InterconnectionCustomer in the Optional Interconnection Study Agreement.
Optional Interconnection Study Agreement shall mean the form of agreement
containedin Appendix 5 of the GeneratorInterconnectionProceduresfor conducting the
Optional InterconnectionStudy.
Party or Parties shall mean TransmissionProvider, Transmission Owner,
Interconnection Customer.or anv combination of the above.
Point of Change of Ownership shall mean the point, as set forth in Appendix A to the
GeneratorInterconnectionAgreement, where the InterconnectionCustomer's Interconnection
Facilities connectto the Transmission Owner's InterconnectionFacilities.
Point of Interconnection shall mean the point, as set forth in Appendix A.
Power Purchase Agreement or PPA shall mean that certain Power Purchase
Agreement,datedas of July 2,2005, by and betweenFPL Energy Duane Arnold, LLC and
InterstatePower and Light Company.
Protected Area means an area encompassedby physical barriers and to which accessis
controlledin accordancewith 10 C.F.R. $ 50.73.
Queue Position shall mean the order of a valid InterconnectionRequest,relative to all
other pending valid InterconnectionRequests,that is establishedbasedupon the date and time of
receipt of the valid InterconnectionRequestby the TransmissionProvider.
Reasonable Efforts shall have that meaning as provided in the Tariff.
Scoping Meeting shall mean the meeting betweenrepresentativesof the Interconnection
Customer,TransmissionOwner, Affected SystemOperator(s)and Transmission Provider
conductedfor the purposeof discussingalternativeinterconnectionoptions, to exchange
information including any transmission data and earlier study evaluationsthat would be
Original SheetNo. 11
reasonablyexpectedto impact such interconnection options, to analyzesuch information, and to
determinethe potential feasible Points of Interconnection.
Site Control shall meandocumentationreasonablydemonstrating:(1) ownershipof, a
leaseholdinterest in, or a right to develop a site for the purpose of constructingthe Generating
Facility; (2) anoption to purchaseor acquire a leaseholdsite for such purpose;or (3) an
exclusivity or other businessrelationship between InterconnectionCustomerand the entity
having the right to sell, leaseor grant Interconnection Customerthe right to possessor occupy a
site for such purpose.
Small Generating Facility shall mean a GeneratingFacility that has an aggregatenet
GeneratingFacility Capacity of no more than 20 MW.
Special Protection System (SPS) shall mean an automaticprotectionsystemor remedial
action schemedesignedto detect abnormal or predeterminedsystem conditions, and take
corrective actions other than and/or in addition to the isolation of faulted components,to
maintain systemreliability. Such action may include changesin demand(MW and MVar),
energy (MVfh and MVarh), or systemconfiguration to maintain systemstability, acceptable
voltage, or power flows. An SPSdoesnot include (a) underfrequencyor undervoltageload
shedding,(b) fault conditions that must be isolated, (c) out-of-step relaying not designedas an
integralpart of an SPS,or (d) TransmissionControl Devices.
Stand Alone Network Upgrades shall mean Network Upgradesthat an Interconnection
Customermay construct without affecting day-to-day operationsof the Transmission System
during their construction. The TransmissionProvider, TransmissionOwner and the
InterconnectionCustomermust agreeas to what constitutesStandAlone Network Upgrades and
identify them in Appendix A to this GIA.
Original SheetNo. 12
System Protection Facilities shall meanthe equipment,including necessaryprotection
signal communicationsequipment,required to protect (l) the Transmission Systemor other
delivery systemsor other generatingsystemsfrom faults or other electrical disturbances
occurring at the GeneratingFacility and (2) the GeneratingFacility from faults or other electrical
systemdisturbancesoccurring on the TransmissionSystemor on other delivery systemsor other
generatingsystemsto which the TransmissionSystemis directly connected.
Tariff shall mean the TransmissionProvider's Tariff through which open access
transmissionservice and Interconnection Service are offered, as filed with the Commission, and
as amendedor supplementedfrom time to time, or any successortariff.
Transmission Control Devicesshall mean a generallyacceptedtransmissiondevicethat
is planned and designedto provide dynamic control of electric system quantities, and are usually
employed as solutions to specific systemperformanceissues. Examples of such devicesinclude
fast valving, high responseexciters,high voltage DC links, active or real power flow control and
reactivecompensationdevicesusing power electronics(e.g.,unified power flow controllers),
static var compensators,thyristor controlled seriescapacitors,braking resistors,and in some
casesmechanically-switchedcapacitorsand reactors. In general,such systemsare not
consideredto be SpecialProtectionSystems.
Transmission Owner shall mean that Transmission Owner as defined in the Tarifl
which includes an entity that owns, leasesor otherwise possessesan interest in the portion of the
Transmission System at which the InterconnectionCustomerproposesto interconnect or
otherwise integrate the operation of the GeneratingFacility. Transmission Owner should be read
to include any IndependentTransmissionCompany that managesthe transmission facilities of
the TransmissionOwner and shall include, as applicable,the owner and/or operator of
distribution facilities interconnectedto the Transmission System,over which facilities
transmissionservice or Wholesale Distribution Serviceunder the Tariff is available at the time
the InterconnectionCustomerrequestsInterconnectionService and to which the lnterconnection
Customerhas requestedinterconnectionof a GeneratingFacility for the purpose of either
transmitting electric energy in interstatecommerceor selling electric energy at wholesale in
interstatecommerce.
Transmission Provider shall mean the Midwest IndependentTransmission System
Operator, Inc. (the "Midwest ISO"), the Regional Transmission Organization that controls or
operatesthe transmissionfacilities of its transmission-owningmembersused for the transmission
of electricity in interstatecommerce and provides transmissionserviceunder the Tariff.
Transmission Owner's Interconnection Facilities shall mean all facilities and
equipment owned by the TransmissionOwner from the Point of Changeof Ownership to the
Point of Interconnectionas identified in Appendix A to this GIA, including any modifications,
additions or upgradesto such facilities and equipment. Transmission Owner's Interconnection
Facilities are sole use facilities and shall not include Distribution Upgrades, GeneratorUpgrades,
Stand Alone Network Upgradesor Network Upgrades.
Original SheetNo. 13
Transmission System shall mean the facilities ownedby the TransmissionOwner and
controlled or operatedby the Transmission Provider or TransmissionOwner that are used to
provide transmissionservice or Wholesale Distribution Serviceunder the Tariff.
Trial Operation shall mean the period during which InterconnectionCustomer is
engagedin on-site test operationsand commissioning of the GeneratingFacility prior to
CommercialOperation
Wholesale Distribution Service shall have that meaningas provided in the Tariff.
Wherever the term "transmission delivery service" is used,Wholesale Distribution Service shall
alsobe implied.
Original SheetNo. 14
ARTICLE 2. EFFECTIVE DATE. TERM AND TERMINATION
2.1
Effective Date. This GIA shall become effective upon execution by the Parties subject
to acceptanceby FERC (if applicable),or if filed unexecuted,upon the date specified by
FERC. Transmission Provider shall promptly file this GIA with FERC upon execution in
accordancewith Article 3.1, if required.
'r)
Term of Agreement. The term of this LGIA shall begin on the Effective Date and
continue in effect until the earlier of December 31, 2029 or the date that NRC Operating
License No. DPR-49 expires. Thereafter the term will be from year to year with a written
termination notice of twenty-four (24) months by any Party, unlessterminatedpursuant
to the provisions of Article 2.3 or unless otherwise agreedto by the Parties
2.3
Termination Procedures. This GIA may be terminatedas follows:
2.3.1
Written Notice. This GIA may be terminated by InterconnectionCustomer after
giving the TransmissionProvider and Transmission Owner ninety (90) Calendar
Days advancewritten notice or by Transmission Provider if the Generating
Facility has ceasedCommercial Operation for three (3) consecutiveyears,
beginning with the last date of Commercial Operation for the GeneratingFacility,
after giving the InterconnectionCustomer ninety (90) CalendarDays advance
written notice. The GeneratingFacility will not be deemedto have ceased
Commercial Operation for purposesof this Article 2.3.1 if the Interconnection
Customer can documentthat it has taken other significant stepsto maintain or
restore operationalreadinessof the GeneratingFacility for the purpose of
returning the GeneratingFacility to Commercial Operation as soon as possible.
2.3.2
Default. Any Party may terminate this GIA in accordancewith Article 17.
2.3.3 NotwithstandingArticles 2.3.1 and2.3.2,no terminationshall becomeeffective
until the Partieshave complied with all Applicable Laws and Regulations
applicable to such termination, including the filing with FERC of a notice of
termination of this GIA, if required, which notice has been acceptedfor filing by
FERC.
2.4
Termination Costs. If a Party elects to terminate this GIA pursuantto Article 2.3 above,
each Party shall pay all costs incurred for which that Party is responsible(including any
cancellation costs relating to orders or contracts for InterconnectionFacilities, applicable
upgrades,and related equipment)or chargesassessedby the other Parties,as of the date
of the other Parties' receipt of such notice of termination, under this GIA. In the event of
termination by a Party, the Partiesshall use commercially ReasonableEfforts to mitigate
the costs,damagesand chargesarising as a consequenceof termination. Upon
termination of this GIA, unlessotherwise ordered or approvedby FERC:
Orieinal SheetNo. 15
2.4.1 With respectto any portion of the TransmissionOwner'sInterconnection
Facilities,Network Upgrades,SystemProtectionFacilities,Distribution
Upgrades,GeneratorUpgrades,and if so determined and made apart of this GIA,
upgradeson Affected Systems,that have not yet been constructedor installed, the
Transmission Owner shall to the extent possible and to the extent of
InterconnectionCustomer'swritten notice under Article 2.3.1, cancelany pending
orders of or refurn, any materials or equipment for, or contractsfor construction
of, such facilities; provided that in the event InterconnectionCustomer electsnot
to authorize such cancellation, InterconnectionCustomer shall assumeall
payrnent obligations with respectto such materials, equipment,and contracts,and
the Transmission Owner shall deliver such material and equipment, and, if
necessary,assign such contracts,to Interconnection Customer as soon as
practicable, at Interconnection Customer'sexpense. To the extent that
InterconnectionCustomer has alreadypaid Transmission Owner for any or all
such costs of materials or equipmentnot taken by InterconnectionCustomer,
Transmission Owner shall promptly refund such amountsto Interconnection
Customer,less any costs,including penaltiesincurred by the TransmissionOwner
to cancel any pending orders of or return suchmaterials, equipment,or contracts.
If an Interconnection Customer terminatesthis GIA, it shall be responsiblefor all
costsincurred in associationwith that InterconnectionCustomer's
interconnection,including any cancellationcostsrelating to orders or contractsfor
InterconnectionFacilities and equipment,and other expensesincluding any
upgradesor related equipment for which the Transmission Owner has incurred
expensesand has not been reimbursedby the Interconnection Customer.
2.4.2 Transmission Owner may, atits option, retain any portion of such materials,
equipment,or facilities that InterconnectionCustomer choosesnot to accept
delivery of in which caseTransmissionOwner shall be responsiblefor all costs
associatedwith procuring such materials, equipment,or facilities. If
TransmissionOwner does not so elect. then Interconnection Customer shall be
responsiblefor such costs.
2.4.3 With respectto any portion of the InterconnectionFacilities, and any other
facilities already installed or constructedpursuant to the terms of this GIA,
InterconnectionCustomer shall be responsiblefor all costs associatedwith the
removal, relocation, reconfiguration or other disposition or retirement of such
materials, equipment,or facilities, and such other expensesactually incurred by
Transmission Owner necessaryto return the Transmission,Distribution or
GeneratorSystem, as applicable,to safe and reliable operation.
2.5
Disconnection. Upon termination of this GIA, the Partieswill take all appropriatesteps
to disconnectthe GeneratingFacility from the Transmissionor Distribution System,as
applicable. All costsrequired to effectuatesuch disconnectionshall be borne by the
terminating Party, unless such termination resulted from the non-terminating Party's
Original SheetNo. 16
Default of this GIA or such non-terminating Party otherwise is responsiblefor these
costsunder this GIA. The GeneratingFacility shall not be disconnectedunlessa source
of Offsite Power Supply Service suitable to meet NRC Requirementsand Commitments
is in service.
2.6
Survival. This GIA shall continue in effect after termination to the extent necessaryto
provide for final billings and paymentsand for costsincurred hereunder,including
|ittingr and paymentspursuant to this GIA; to permit the determination and enforcement
of liability uttd ittdr-nification obligations arising from acts or eventsthat occurred while
this GIA was in effect; and to permit eachParty to have accessto the lands of the other
Party pursuant to this GIA or other applicable agreements,to disconnect,remove or
salvageits own facilities and equipment.
ARTICLE 3. REGULATORY FILINGS
3.1
Filing. The TransmissionProvider shall file this GIA (and any amendmenthereto) with
the appropriateGovemmental Authority, if required. A Party may requestthat any
information so providedbe subjectto the confidentialityprovisionsof Article22- If that
Party has executedthis GIA, or any amendmentthereto,the Party shall reasonably
cooperatewith Transmission Provider with respectto such filing and to provide any
information reasonablyrequestedby TransmissionProvider neededto comply with
applicable regulatory requirements.
ARTICLE 4. SCOPE OF SERVICE
4.1
Interconnection Product Options. InterconnectionCustomerhas selectedthe following
(checked)tlpe of Interconnection Service:
ER or !00oh NR (The InterconnectionCustomerowns al}Yo shareof the
Check:
GeneratingFacility. The InterconnectionCustomerhas Network Interconnection Service
for 100% of this ownership share.)
4.1.1 Energy ResourceInterconnection Service (ER Interconnection Service).
4.l.l,l
The Product. ER InterconnectionServiceallows lnterconnection
Customer to connectthe GeneratingFacility to the Transmission or
Distribution System,as applicable, and be eligible to deliver the
GeneratingFacility's output using the existing firm or non-firm capacity
of the Transmission Systemon an "as available" basis. To the extent
InterconnectionCustomerwants to receive ER Interconnection Service,
the Transmission Owner shall construct facilities consistentwith the
studiesidentified in Appendix A.
Original SheetNo. 17
An InterconnectionCustomer seekingER Interconnection Sewice for
new or addedcapacity at a GeneratingFacility may be granted
conditional ER Interconnection Service statusto the extent there is such
capacity available on the Transmission Systemto accommodatethe
InterconnectionCustomer's GeneratingFacility. At the requestof the
InterconnectionCustomer,Conditional ER Interconnection Service
statusmay be granted subject to the systembeing able to accommodate
the interconnectionwithout upgrades,until such time as a higher queued
project(s) with a later service date affecting the samecommon elements
is placed into service. The conditional ER Interconnection Service shall
be terminated in the event the Interconnection Customer fails to fund the
necessarystudiesand the Network Upgradesnecessaryto grant the
Interconnectioncustomer's ER Interconnection service upon the
completion of higher queuedprojects involving the samecommon
elements.
4.1.t.2
Transmission Delivery Service Implications. Under ER
Interconnection Service, the InterconnectionCustomer will be eligible to
inject power from the GeneratingFacility into and deliver power across
the Transmission Systemon an "as available" basis up to the amount of
MW identified in the applicable stability and steadystate studiesto the
extent the upgradesinitially required to qualify for ER lnterconnection
Servicehave been constructed. After that date FERC makes effective
the Midwest ISO's Energy Market Tariff filed in Docket
No. ER04-691-000,InterconnectionCustomermay place a bid to sell
into the market up to the maximum identified GeneratingFacility output,
subject to any conditions specified in the interconnection service
approval, and the GeneratingFacility will be dispatchedto the extent the
InterconnectionCustomer's bid clears. In all other instances,no
transmissionor other delivery service from the GeneratingFacility is
assured,but the InterconnectionCustomermay obtain Point-To-Point
Transmission Service,Network Integration Transmission Serviceor be
used for secondarynetwork transmissionservice,pursuant to the Tarifq
up to the maximum output identified in the stability and steadystate
studies. In those instances,in order for the Interconnection Customerto
obtain the right to deliver or inject energy beyond the Point of
Interconnectionor to improve its ability to do so, transmissiondelivery
servicemust be obtained pursuant to the provisions of the Tariff. The
Interconnection Customer's ability to inject its GeneratingFacility
output beyond the Point of Interconnection,therefore, will dependon the
existing capacity of the Transmission or Distribution Systernas
applicable, at such time as a transmissionservicerequestis made that
would accommodatesuch delivery. The provision of Firm
Point-To-Point Transmission Service or Network Integration
Transmission Servicemay require the construction of additional
Network or Distribution Upgrades.
Original SheetNo. 18
4.1.2 Network ResourceInterconnection Service (NR Interconnection Service).
4.1.2.1 The Product. The TransmissionProvidermust conductthe necessary
studies and the TransmissionOwner shall constructthe facilities
identified in Appendix A of this GIA, subject to the approval of
Govemmental Authorities, neededto integrate the GeneratingFacility in
the samemanner as for any GeneratingFacility being designatedas a
Network Resource.
4.1.2.2 Transmission Delivery Service Implications. NR Interconnection
Service allows the GeneratingFacility to be designatedby any Network
Customerunder the Tariff on the Transmission System as a Network
Resource,up to the GeneratingFacility's full output, on the samebasis
as existing Network Resourcesthat are interconnectedto the
Transmission or Distribution System,as applicable, and to be studied as
a Network Resourceon the assumptionthat such a designationwill
occur. Although NR InterconnectionService does not convey a
reservationof transmissionservice,anyNetwork Customer can utilize
network service under the Tariff to obtain delivery of energy from the
GeneratingFacility in the samemanner as it accessesNetwork
Resources. A GeneratingFacility receiving NR Interconnection Service
may also be used to provide Ancillary Servicesafter technical studies
and/or periodic analysesare performed with respectto the Generating
Facility's ability to provide any applicableAncillary Services,provided
that such studiesand analyseshave been or would be required in
connectionwith the provision of such Ancillary Servicesby any
existing Network Resource. However, if the GeneratingFacility has not
been designatedas a Network Resourceby any Network Customer,it
cannot be required to provide Ancillary Servicesexcept to the extent
such requirementsextend to all generatingfacilities that are similarly
situated. The provision ofNetwork lntegration Transmission Service or
Firm Point-To-Point Transmission Servicemay require additional
studies and the constructionof additional upgrades. Becausesuch
studies and upgradeswould be associatedwith a requestfor delivery
service under the Tariff, cost responsibility for the studies and upgrades
would be in accordancewith FERC's policy for pricing transmission
deliverv services.
NR Interconnection Service doesnot necessarilyprovide the
Interconnection Customerwith the capability to physically deliver the
output of its GeneratingFacility to any particular load on the
Transmission Systemwithout incurring congestioncosts. In the event of
transmissionor distribution constraintson the Transmissionor
Distribution System,as applicable,the GeneratingFacility shall be
subject to the applicable congestionmanagementproceduresin the
Transmission Systemin the samemanner as Network Resources.
Original SheetNo. 19
There is no requirement either at the time of study or interconnection,or
at anypoint in the future, that the GeneratingFacility be designatedas a
Network Resourceby a Network Customeror that the Interconnection
Customeridentifu a specific buyer (or sink). To the extent a Network
Customerdoes designatethe GeneratingFacility as a Network Resource,
it must do so pursuant to the Tariff.
Once an Interconnection Customersatisfiesthe requirementsfor
obtaining NR InterconnectionService, any future transmissionservice
requestfor delivery from the GeneratingFacility within the
Transmission Systemof any amount of capacity and/or enefgy' up to the
amount initially studied, will not require that any additional studiesbe
performed or that any further upgradesassociatedwith such Generating
Facility be undertaken,regardlessof whether such GeneratingFacility is
ever designatedby a Network customer as a Network Resourceand
regardlessof changesin ownership of the GeneratingFacility. To the
extent the Interconnection Customerentersinto an arrangementfor long
term transmissionservice for deliveries from the GeneratingFacility to
customersother than the studiedNetwork Customers,or for any PointTo-Point Transmission Service,such requestmay require additional
studiesand upgradesin order for the TransmissionProvider to gtant
such request. However, the reduction or elimination of congestionor
redispatchcostsmay require additional studies and the construction of
additionalupgrades.
To the extent the InterconnectionCustomerentersinto an arrangement
for long term transmissionservice for deliveries from the Generating
Facility outside the Transmission System,such requestmay require
additional studies and upgradesin order for the TransmissionProvider to
grant such request.
4.1.2.3Conditional NR Interconnection Service. An InterconnectionCustomer
seekingNR Interconnection Service for new or addedcapacity at a
GeneratingFacility may be grantedconditional NR Intercorurection
Service statusto the extent there is such capacity available on the
Transmission Systemto accommodatethe Interconnection Customer's
GeneratingFacility. At the requestof the Interconnection Customer,
Conditional NR InterconnectionService statusmay be grantedsubject to
the systembeing able to accommodatethe interconnection without
upgrades,until such time as higher queuedproject(s) with a later service
date affecting the samecommon elementsis placed into service. The
conditional NR lnterconnection Service statusmay be convertedto ER
Interconnection Service if either of the following occurs:
Original SheetNo. 20
1)
The InterconnectionCustomerfails to fund necessarystudiesand
Network Upgradesrequired to allow the Interconnection
Customer's GeneratingFacility to receive NR Interconnection
Service upon the completion of higher queuedprojects involving
the samecommonelements;or
2)
The higher queuedproject(s) or planned and required Network
Upgrades are placed in service and the Network Upgradesrequired
to provide NR InterconnectionService statusto the
InterconnectionCustomer's GeneratingFacility are not in service.
In the event the InterconnectionCustomer fails to fund the necessary
studiesand Network Upgradesfor NR Interconnection Service, the
InterconnectionCustomer's conditional NR InterconnectionService status
shall be convertedto ER InterconnectionService stafusunless the
Interconnection Customermakes a new InterconnectionRequest. Such
new InterconnectionRequestshall be evaluatedin accordancewith the
GIP and its new queueposition priority.
Some or all of the conditional NR Interconnection Service statusmay be
temporarily revoked if the Network Upgradesare not in service when the
higher queuedproject(s) areplaced in service. The availability of
conditional NR InterconnectionService statuswill be determinedby
Transmission Provider's studies. Upon funding and completion of the
Network Upgradesrequired to establishthe GeneratingFacility's NR
Interconnection Servicestatus,the GeneratingFacility will be grantedNR
Interconnection Servicestatus.
The Parties agreethat the portion of the GeneratingFacility classified as
NR lnterconnection Serviceis the first portion of the output of the
combined output of all the units at the GeneratingFacility except in
circumstanceswhere the InterconnectionCustomerotherwise electsin the
Agreement, as amended,to allocate that portion to the output of specific
unit(s) at the GeneratingFacility, the total of which will not exceedthe
output eligible forNR InterconnectionService as shown by the additional
studies. To the extent InterconnectionCustomerdesiresto obtain NR
Interconnection Service for any portion of the GeneratingFacility in
addition to that supportedby such additional studies,the Interconnection
Customerwill be required to requestsuch additional NR Interconnection
Servicethrouglr a separateInterconnectionRequestin accordancewith the
GIP.
4.2
Provision of Service. TransmissionProvider shall provide Interconnection Service for
the GeneratingFacility at the Point of Interconnection.
Original SheetNo. 21
4.3
Performance Standards. EachParty shall perform all of its obligationsunder this GIA
in accordancewith Applicable Laws and Regulations,Applicable Reliability Standards,
and Good Utility Practice. To the extent aParty is requiredor preventedor,limited in
taking any action by such regulations and standards,or if the obligations of any Party
maybecome limited by a changein Applicable Laws and Regulations,Applicable
Reliability Standards,and Good Utility Practice after the execution of this GIA, that
Party shall not be deemedto be in Breach of this GIA for its compliance therewith. The
Party so limited shall notify the other Partieswhereupon the TransmissionProvider shall
amendthis GIA in concurrencewith the other Parties and submit the amendmentto the
Commissionfor approval.
4.4
No Transmission Delivery Service. The executionof this GIA doesnot constitutea
requestfor, nor the provision of, any transmission delivery service under the Tariff, and
does not convey any right to deliver electricity to any specific customeror Point of
Delivery.
4.5
Interconnection Customer Provided Services. The servicesprovidedby
InterconnectionCustomerunderthis GIA are set forth in Article 9.6 and Article 13.5.1.
InterconnectionCustomer shall be paid for such servicesin accordancewith Article 11.6.
ARTICLE 5. INTERCONNECTION FACILITIES ENGINEERING, PROCUREMENT,
AND CONSTRUCTION
5.1
Options. Unless otherwise mutually agreedto between the Parties,
InterconnectionCustomer shall select: 1) the In-Service Date, Initial
SynchronizationDate, and Commercial Operation Date basedon a reasonable
construction schedulethat will allow sufficient time for design, construction,
equipmentprocurement,and permit acquisition of Transmission System
equipmentor rightof-way; and 2) either StandardOption or Alternate Option set
forth below for completion of the Transmission Owner's Interconnection
Facilities, Network Upgrades,SystemProtection Facilities, Distribution Upgrades
and GeneratorUpgrades,as applicable, and set forth in Appendix A, and such
datesand selectedoption shall be set forth in Appendix B. The datesand selected
option shall be subjectto the acceptanceof the Transmission Owner taking into
accountthe type of constructionto be employed and the regulatory requirements
of GovernmentalAuthority, and does not convey any right to deliver electricity to
any specific customeror Point of Delivery, including the need to obtain permits or
other authorizationsfor construction of the lnterconnection Facilities, Network
Upgrades,Systan Protection Facilities, Distribution Upgrades,Generator
Upgrades,the GeneratingFacility and Stand-Alone Network Upgrades.
5.1.1 Standard Option. The Transmission Owner shall design,procure, and
constructthe Transmission Owner's lnterconnection Facilities, Network
Upgrades,SystemProtection Facilities, Distribution Upgrades,and
GeneratorUpgradesusing ReasonableEfforts to complete the
Original SheetNo. 22
Transmission Owner' s InterconnectionFacilities, Network Upgrades,
SystemProtection Facilities, Distribution Upgradesand Generator
upgrades by the datesset forth in Appendix B, Milestones, subject to the
receipt of all approvalsrequired from GovernmentalAuthorities and the
receipt of all land rights necessaryto commenceconstruction of such
facilities, and such other permits or authorizationsas may be required.
The Transmission Provider or Transmission Owner shall not be required
to undertakeany action which is inconsistentwith its standardsafety
practices,its material and equipment specifications,its design criteria and
construction procedures,its labor agreements,Applicable Laws and
Regulations and Good Utility Practice. In the event the Transmission
Owner reasonablyexpectsthat it will not be able to complete the
Transmission Owner' s InterconnectionFacilities, Network Upgrades,
SystemProtection Facilities, Distribution Upgradesand Generator
Upgradesby the specified dates,the Transmission Owner shall promptly
provide written notice to the InterconnectionCustomer and Transmission
Provider and shall undertakeReasonableEfforts to meet the earliestdates
thereafter.
5.L.2 Alternate Option. If the datesdesignatedby InterconnectionCustomer
are acceptableto TransmissionProvider and Transmission Owner, the
Transmission Provider shall so notiff Interconnection Customer within
thirty (30) CalendarDays, and TransmissionOwner shall assume
responsibility for the design,procurement and construction of the
Transmission Owner's InterconnectionFacilities by the designateddates.
If TransmissionOwner subsequentlyfails to completeTransmissionOwner's
InterconnectionFacilitiesby the In-ServiceDate, to the extentnecessaryto provide
back feed power; or fails to completeNetwork Upgradesby the Initial
SynchronizationDate to the extentnecessaryto allow for Trial Operationat full
power output, unless other arrangementsare made by the Parties for such Trial
Operation;or fails to completethe Network Upgradesby the Commercial Operation
Date, as suchdatesarereflectedin Appendix B, Milestones;TransmissionOwner
shall pay lnterconnectionCustomerliquidated damagesin accordancewith
Article 5.3, Liquidated Damages,provided, however, the datesdesignatedby
Interconnection Customer shall be extendedday for day for each day that the
Transmission Provider refusesto grant clearancesto install equipment.
The Transmission Owner and lnterconnection Customer may adopt an incentive
payment schedulethat is mutually agreeableto encouragethe Transmission Owner to
meet specified accelerateddates. Such payment by the Interconnection Customer is
not subject to refund.
Original SheetNo. 23
5.1.3 Option to Build. If the datesdesignatedby Interconnection Customer are not
acceptableto Transmission Owner to complete the Transmission Owner's
InterconnectionFacilities or StandAlone Network Upgrades,the Transmission
Provider shall so notif,i the InterconnectionCustomerwithin thirty (30) Calendar
Days, and unless the Parties agreeotherwise, InterconnectionCustomer shall have
the option to assumeresponsibility for the design,procurement and construction
of TransmissionOwner's InterconnectionFacilities and StandAlone Network
Upgradesby the datesoriginally designatedby the InterconnectionCustomer
under Article 5.1.2. The Partiesmust agreeas to what constitutesStandAlone
Network Upgradesand identify such StandAlone Network Upgradesin Appendix
A. Except for StandAlone Network Upgrades,Interconnection Customershall
have no right to constructNetwork Upgradesunder this option'
5.1.4 Negotiated Option. If the InterconnectionCustomerelectsnot to exerciseits
option underArticle 5.1.3,Option to Build, InterconnectionCustomershall so
notify TransmissionProvider and Transmission Owner within thirty (30)
CalendarDays, and the Parties shall in good faith attempt to negotiateterms and
conditions (including revision of the specified datesand liquidated damages,the
provision of incentives or the procurement and construction of a portion of the
Transmission Owner's InterconnectionFacilities and StandAlone Network
Upgradesby InterconnectionCustomer)pursuantto which Transmission Owner
is responsiblefor the design,procurement and construction of the Transmission
Owner's InterconnectionFacilities and Network Upgrades. If the Partiesare
unable to reach agreementon such terms and conditions, Transmission Owner
shall assumeresponsibility for the design,procurement and constructionof the
Transmission Owner's InterconnectionFacilities and Network Upgradespursuant
to 5.1.1,StandardOption.
The Transmission Owner and InterconnectionCustomermay adopt an incentive
payrnent schedulethat is mutually agreeableto encouragethe Transmission
Owner to meet specified accelerateddates. Such payrnentby the Interconnection
Customer is not subjectto refund.
5.2
General Conditions Applicable to Option to Build. If Interconnection Customer
assumesresponsibility for the design,procurement and construction of the Transmission
Owner's Interconnection Facilities and Stand Alone Network Upgradesafter receipt of
all required approvalsfrom GovernmentalAuthorities necessaryto cofirmence
construction,
(1) the InterconnectionCustomer shall engineer,procgre equipment, and
construct the TransmissionOwner's InterconnectionFacilities and StandAlone
Network Upgrades(or portions thereof) using Good Utility Practice and using
standardsand specificationsprovided in advanceby the Transmission Owner, or
as required by any Governmental Authority;
Original SheetNo. 24
(2) Interconnection Customer's engineering,procurementand construction of the
Transmission Owner's InterconnectionFacilities and StandAlone Network
Upgradesshall comply with all requirementsof law or Govemmental Authority to
which Transmission Owner would be subject in the engineering,procurement or
construction of the Transmission Owner's InterconnectionFacilities and Stand
Alone Network Upgrades;
(3) TransmissionProvider,at TransmissionProvider'soption, and Transmission
Owner shall be entitled to review and approve the engineeringdesign, equipment
acceptancetests(includingwitnessing of acceptancetests),and the construction
(including monitoring of construction) of the TransmissionOwner's
InterconnectionFacilities and StandAlone Network Upgrades,and shall have the
right to reject any design,procurement,construction or acceptancetest of any
equipment that does not meet the standardsand specificationsof Transmission
Provider, Transmission Owner and any GovernmentalAuthority;
(4) prior to commencementof construction, InterconnectionCustomer shall
provide to TransmissionProvider and Transmission Owner a schedulefor
constructionof the TransmissionOwner's InterconnectionFacilities and Stand
Alone Network Upgrades,and shall promptly respondto requestsfor information
from Transmission Provider and Transmission Owner;
(5) at any time during construction,TransmissionProvider andTransmissionOwner
shall have unrestrictedaccessto the constructionsite for the TransmissionProvider's
InterconnectionFacilities and StandAlone Network Upgradesand to conduct
inspectionsof the same;
(6) at any time during construction, should any phaseof the engineering,
equipment procurement,or construction of the TransmissionOwner's
Interconnection Facilities and Stand Alone Network Upgradesnot meet the
standardsand specificationsprovided by TransmissionOwner, the
Interconnection Customer shall be obligated to remedy deficiencies in that portion
of the Transmission Owner's InterconnectionFacilities and Stand Alone Network
Upgradesto meet the standardsand specificationsprovided by Transmission
Provider and TransmissionOwner;
(7) the InterconnectionCustomer shall indemniff the TransmissionProvider and
Transmission Owner for claims arising from the InterconnectionCustomer's
construction of Transmission Owner's InterconnectionFacilities and StandAlone
Network Upgradesunder the terms and proceduresapplicableto Article I 8.1,
Indemnity;
(8) the InterconnectionCustomer shall kansfer control of Transmission Owner's
InterconnectionFacilities and StandAlone Network Upgradesto the
Transmission Owner:
Original SheetNo. 25
(9) Unless Partiesotherwise agree,InterconnectionCustomer shall transfer
ownership of Transmission Owner's InterconnectionFacilities and StandAlone
Network Upgradesto the TransmissionOwner;
(10) TransmissionProvider,at TransmissionProvider's option, and Transmission
Owner shall approve and acceptfor operation and maintenancethe Transmission
Owner's InterconnectionFacilities and Stand Alone Network Upgradesto the
extent engineered,procured, and constructedin accordancewith this Atticle 5.2
only if the Transmission Owner's InterconnectionFacilities and StandAlone
Network Upgradesmeet the standardsand specifications of Transmission
Provider, Transmission Owner and any Govemmental Authority.
(11) InterconnectionCustomershall deliver to TransmissionProvider "as-built"
drawings, information, and any other documentsthat are reasonablyrequired by
TransmissionProvider to assurethat the InterconnectionFacilities and
Stand-AloneNetwork Upgradesare built to the standardsand specifications
required by TransmissionProvider.
5.3
Liquidated Damages. The actual damagesto the Interconnection Customer, in the event
the TransmissionOwner's InterconnectionFacilities or Network Upgrades are not
completedby the datesdesignatedby the InterconnectionCustomer and acceptedby the
5.1.2 ot 5.1.4,
TransmissionProviderand TransmissionOwner pursuantto subparagraphs
above,may include InterconnectionCustomer's fixed operation and maintenancecosts
and lost opportunity costs. Such actual damagesare uncertain and impossible to
determine at this time. Becauseof such uncertainty, any liquidated damagespaid by the
TransmissionOwner to the InterconnectionCustomerin the event that Transmission
Owner does not complete any portion of the Transmission Owner's Interconnection
Facilities or Network Upgradesby the applicable dates,shall be an amount equal to % of
1 percentper day of the actual cost of the TransmissionOwner's Interconnection
Facilities and Network Upgrades,in the aggregate,for which Transmission Owner has
assumedresponsibility to design,procure and construct.
However, in no event shall the total liquidated damagesexceed20 percent of the actual
cost of the TransmissionOwner's InterconnectionFacilities and Network Upgradesfor
which the TransmissionOwner has assumedresponsibility to design, procure, and
construct. The foregoing paymentswill be made by the Transmission Owner to the
InterconnectionCustomer asjust compensationfor the damagescausedto the
InterconnectionCustomer,which actual damagesare uncertain and impossible to
determineat this time, and as reasonableliquidated damages,but not as a penalty or a
method to secureperformanceof this GIA. Liquidated damages,when the Parties agtee
to them, are the exclusive remedy for the TransmissionOwner's failure to meet its
schedule.
No liquidated damagesshall be paid to InterconnectionCustomer ifi (1) Interconnection
Customeris not ready to commenceuse of the Transmission Owner's Interconnection
Facilities or Network Upgradesto take the delivery of power for the GeneratingFacility's
Original SheetNo. 26
Trial Operation or to export power from the GeneratingFacility on the specified dates,
unlessthe InterconnectionCustomer would have been able to commenceuse of the
TransmissionOwner's Interconnection Facilities or Network Upgradesto take the
delivery of power for GeneratingFacility's Trial Operation or to export power from the
GeneratingFacility, but for TransmissionOwner's delay; (2) the TransmissionOwner's
failure to meet the specified datesis the result of the action or inaction of the
TransmissionProvider, the InterconnectionCustomer or any other earlier queued
InterconnectionCustomerwho has enteredinto an earlier GIA with the Transmission
Provider and/or a Transmission Owner or with an Affected SystemOperator,or any
causebeyond Transmission Owner's reasonablecontrol or reasonableability to cure;
(3) the InterconnectionCustomerhas assumedresponsibility for the design,procurement
and construction of the Transmission Owner's InterconnectionFacilities and Stand Alone
Network Upgrades;(4) the delay is due to the inability of the TransmissionOwner to
obtain all required approvalsfrom GovernmentalAuthorities in a timely manner for the
constructionof any element of the InterconnectionFacilities, Network Upgradesor Stand
Alone Network Upgrades,or any other permit or authorizationrequired, or any land
rights or other private authorizationsthat may be required, and TransmissionOwner has
exercisedReasonableEfforts in procuring such approvals,permits, rights or
authorizations;or (5) the Partieshave otherwise agreed5.4
J.5
Power System Stabilizers. The InterconnectionCustomershall procure,install,
maintain and operatepower system stabilizersin accordancewith the guidelines and
proceduresestablishedby the Applicable Reliability Council. TransmissionProvider and
TransmissionOwner reservethe right to reasonablyestablishminimum acceptable
settingsfor any installed power system stabilizers, subject to the design and operating
limitations of the GeneratingFacility. If the GeneratingFacility's power system
stabilizers are removed from service or are not capableof automatic operation,the
InterconnectionCustomer shall immediately notiff the TransmissionProvider's system
operator,or its designatedrepresentative. The requirementsof this paragraphshall not
apply to induction generators.
Equipment Procurement. If responsibility for construction of the Transmission
Owner's InterconnectionFacilities, Network Upgradesand/or Distribution Upgradesis to
be bome by the Transmission Owner, then the Transmission Owner shall commence
design of the Transmission Owner's InterconnectionFacilities, Network Upgradesand/or
Distribution Upgrades,and procure necessaryequipment as soon as practicable after all
of the following conditions are satisfied, unlessthe Partiesotherwise agreein writing:
5.5.1 The TransmissionProvider has completed the InterconnectionFacilities Study
pursuantto the Interconnection Facilities Study Agreement;
5.5.2 The TransmissionProvider has received written authorization from the
IntercorurectionCustomerby the date specified in Appendix B, Milestones, for
TransmissionOwner to proceedwith design and procurement; and
Original SheetNo. 27
5.5.3 The InterconnectionCustomerhas provided security to the Transmission Owner,
with notice providedto TransmissionProvider,in accordancewith Article 11.5by
the datesspecifiedin Appendix B, Milestones.
5.O
Construction Commencement. The TransmissionOwner shall commenceconstruction
of the TransmissionOwner's InterconnectionFacilities,Network Upgfades'
TransmissionOwner's SystemProtectionFacilities,Distribution Upgrades,and
GeneratorUpgrades for which it is responsibleas soon as practicable after the following
additional conditions are satisfied:
5.6.1 Approval of the appropriateGovemmental Authority has been obtained for any
facilities requiring regulatory approval;
5.6.2 Necessaryreal property rights and rights-of-way have been obtained,to the extent
required for the constructionof a discrete aspectof the TransmissionOwner's
Interconnection Facilities, Network Upgrades and Distribution Upgrades;
5.6.3 The Transmission Provider has received written authorization from the
Interconnection Customerby the date specified in Appendix B, Milestones, for
Transmission Owner to proceedwith its construction; and
5.6.4 The InterconnectionCustomerhas provided security to the Transmission Owner,
with notice to TransmissionProvider,in accordancewith Article 11.5by the dates
specifiedin Appendix B, Milestones.
5.7
Work Progress. Transmission Owner and Interconnection Customerwill keep each
other and Transmission Provider advisedperiodically as to the progressof their
respectivedesign, procurementand construction efforts. Either Transmission Owner or
Interconnection Customermay, at anytime, request a progressreport from the other, with
a copy to be provided to the other Parties. lf, at any time, the InterconnectionCustomer
determinesthat the completion of the Transmission Owner's InterconnectionFacilities,
Network Upgrades, or TransmissionOwner's SystemProtection Facilities will not be
required until after the specified In-Service Date, the InterconnectionCustomerwill
provide written notice to the TransmissionProvider and TransmissionOwner of such
later date upon which the completion of the Transmission Owner's Interconnection
Facilities, Network Upgradesor TransmissionOwner's SystemProtection Facilities will
be required. The Transmission Owner may delay the In-Service Date of its facilities
accordingly.
5.8
Information Exchange. As soon as reasonablypracticable after the Effective Date, the
Parties shall exchangeinformation regarding the design and compatibility of the
Interconnection Facilities and compatibility of the InterconnectionFacilities with the
Transmission Systemor Distribution System,as applicable, and shall work diligently and
in good faith to make any necessarydesign changes.
Original SheetNo. 28
5.9
Limited Operation. If any of the TransmissionOwner's InterconnectionFacilities,
Network Upgrades,or TransmissionOwner's SystemProtectionFacilities,Distribution
Upgradesor GeneratorUpgradesare not reasonablyexpectedto be completedprior to the
Commercial Operation Date of the GeneratingFacility, Transmission Provider shall,
upon the requestand at the expenseof InterconnectionCustomer,perform Operating
Studieson a timely basis to determine the extent to which the GeneratingFacility and the
InterconnectionCustomerInterconnectionFacilities may operateprior to the completion
of the Transmission Owner's InterconnectionFacilities, Network Upgrades,
TransmissionOwner's SystemProtectionFacilities,Distribution Upgradesor Generator
Upgradesconsistentwith Applicable Laws and Regulations,Applicable Reliability
Standards,Good Utility Practice, and this GIA. TransmissionProvider and Transmission
Owner shall permit InterconnectionCustomerto operatethe GeneratingFacility and the
InterconnectionCustomer's InterconnectionFacilities in accordancewith the results of
such studies;provided, however, such studiesreveal that such operationmay occur
without detriment to the Transmission Systemas then configured and in accordancewith
the safety requirementsof Transmission Owner and any GovernmentalAuthority.
5.10
Interconnection Customer's Interconnection Facilities C'ICIF"). Interconnection
Customershall, at its expense,design,procure, construct,own and install the ICIF, as set
forth in Appendix A.
5.10.1
Interconnection Customer's Interconnection Facility Specifications.
Interconnection Customer shall submit initial design and specificationsfor the
ICIF, including InterconnectionCustomer's SystemProtection Facilities, to
TransmissionProvider and TransmissionOwner at least one hundred eighty
(1S0) CalendarDays prior to the Initial SynchronizationDate; and final design
and specificationsfor review and comment at least ninety (90) CalendarDays
prior to the Initial SynchronizationDate. TransmissionProvider at
Transmission Provider's option, and TransmissionOwner shall review such
specificationsto ensurethat the ICIF are compatible with their respective
technical specifications,operational control, and safety requirementsand
comment on such design and specificationswithin thirty (30) CalendarDays of
InterconnectionCustomer'ssubmission. All specificationsprovided hereunder
shall be deemedconfidential.
5.L0.2
Transmission Providerts and Transmission Owner's Review. Transmission
Provider's and TransmissionOwner's review of InterconnectionCustomer's
final specificationsshall not be construedas confirming, endorsing,or
providing a warranty as to the design, fitness, safety, durability or reliability of
the Generating Facility, or the ICIF. Interconnection Customer shall make such
changesto the ICIF as may reasonablybe required by TransmissionProvider
and TransmissionOwner, in accordancewith Good Utility Practice,to ensure
that the ICIF are compatible with the technical specifications,operational
control and safety requirementsof TransmissionProvider and Transmission
Owner.
Original SheetNo. 29
5.10.3
ICIF Construction. The ICIF shall be designedand constructedin accordance
with Good Utility Practice. Within one hundredtwenty (120) CalendarDays
after the Commercial Operation Date, unlessthe Partiesagreeon another
mutually acceptabledeadline, the InterconnectionCustomer shall deliver to the
TransmissionProvider and TransmissionOwner "as-built" drawings,
information and documentsfor the ICIF, such as: a oneline diagram, a site plan
showing the GeneratingFacility and the ICIF, plan and elevation drawings
showing the layout of the ICIF, a relay functional diagram, relaying AC and DC
schematicwiring diagrams and relay settingsfor all facilities associatedwith the
InterconnectionCustomer'sstep-uptransformers,the facilities connecting the
GeneratingFacility to the step-uptransformersand the ICIF, and the
impedances(determinedby factory tests) for the associatedstep-uptransformers
and the GeneratingFacility. The InterconnectionCustomer shall provide
TransmissionProvider and TransmissionOwner with Interconnection
Customer's specifications for the excitation system,automatic voltage regulator,
GeneratingFacility control and protection settings,transformer tap settings,and
communications,if applicable.
s.11 Transmission Owner's Interconnection Facilities Construction. The Transmission
Owner's InterconnectionFacilities shall be designedand constructedin accordancewith
Good Utility Practice. Upon request,within one hundredtwenty (120) CalendarDays
after the Commercial Operation Date, unless the Partiesagreeon anothermutually
acceptabledeadline,the Transmission Owner shall deliver to the Transmission Provider
and InterconnectionCustomerthe following "as-built" drawings, information and
documentsfor the Transmission Owner's InterconnectionFacilities specified in
Appendix C to this GIA.
Such drawings, information and documentsshall be deemedConfidential Information.
Upon completion, the Transmission Owner's InterconnectionFacilities and StandAlone
Network Upgradesshall be under the control of the TransmissionProvider or its
designatedrepresentative.
5.12
Access Rights. Upon reasonablenotice by aParty, and subject to any required or
necessaryregulatory approvals,a Party ("Granting Party'') shall furnish at no cost to the
other Party ("Access Party'') any rights of use, licenses,rights of way and easementswith
respectto lands owned or controlled by the Granting Party, its agents(if allowed under
the applicable agencyagreement),or any Affiliate, that are necessaryto enable the
Access Party to obtain ingress and egressto construct,operate,maintain, repair, test (or
witness testing), inspect,replace or remove facilities and equipmentto: (i) interconnect
the GeneratingFacility with the Transmission System; (ii) operateand maintain the
GeneratingFacility, the InterconnectionFacilities and the Transmission System; and
(iii) disconnector remove the Access Party's facilities and equipmentupon termination
of this GIA. In exercising such licenses,riglrts of way and easements,the Access Party
shall not unreasonablydisrupt or interfere with normal operation of the Granting Party's
businessand shall adhereto the safety rules and proceduresestablishedin advance,as
Original SheetNo. 30
may be changedfrom time to time, by the Granting Party and provided to the Access
Party.
5.13
Lands of Other Property Owners. If any part of the TransmissionOwner's
InterconnectionFacilities, Network Upgrades, and/or Distribution Upgradesis to be
installed on property owned by personsother than Interconnection Customeror
Transmission Owner, the TransmissionOwner shall at InterconnectionCustomer's
expenseuse efforts, similar in nature and extent to those that it typically undertakeson its
own behalf or on behalf of its Affiliates, including use of its eminent domain authority to
the extent permitted and consistentwith Applicable Laws and Regulationsand, to the
extent consistentwith such Applicable Laws and Regulations,to procure from such
personsany rights of use, licenses,rights of way and easementsthat are necessaryto
construct,operate,maintain, test, inspect,replace or remove the TransmissionOwner's
InterconnectionFacilities, Network Upgradesand/or Distribution Upgradesupon such
property.
5.14
Permits. Transmission Provider or Transmission Owner and InterconnectionCustomer
shall cooperatewith each other in good faith in obtaining all permits, licensesand
authorizationsthat are necessaryto accomplish the interconnection in compliancewith
Applicable Laws and Regulations. With respectto this paragraph,Transmission Owner
shall provide permitting assistanceto the Interconnection Customercomparableto that
provided to the TransmissionOwner's own, or an Affiliate's generation,to the extent that
Transmission Owner or its Affiliate owns generation.
5.15
Early Construction of Base CaseFacilities. (Includesfacilities requiredfor all queued
projects with InterconnectionAgteements ).Interconnection Customermay request
Transmission Owner to construct,and Transmission Owner shall construct,using
ReasonableEfforts to accommodateInterconnection Customer'sIn-Service Date, all or
any portion of any Network Upgrades,Transmission Owner's SystemProtection
Facilities or Distribution Upgradesrequired for Interconnection Customerto be
interconnectedto the Transmissionor Distribution System, as applicable,which are
included in the Base Caseof the InterconnectionFacilities Study for the Interconnection
Customer,and which also are required to be constructedfor anotherInterconnection
Customerwith a prior GIA, but where such construction is not scheduledto be completed
in time to achieve InterconnectionCustomer'sIn-Service Date. Any such Network
Upgrades,System Protection Facilities or Distribution Upgrades are included in the
facilities to be constructedand as set forth in Appendix A to this GIA to the extent they
are reasonablyknown.
5.16
Suspension.
5.16.L Interconnection Customer's Right to Suspend for Force Majeure Eventl
Obligations. Provided that such suspensionis permissible under the
authorizations,permits or approvals granted for the constructionof such
InterconnectionFacilities, Network Upgradesor Stand Alone Network Upgrades,
Interconnection Customerwill not suspendunless a Force Majeure event occurs.
Original SheetNo. 31
InterconnectionCustomermust provide written notice of its requestfor
suspensionto Transmission Provider and TransmissionOwner, and provide a
description of the Force Majeure event that is acceptableto the Transmission
Provider. Suspensionwill only apply to the InterconnectionCustomermilestones
and InterconnectionFacilities describedin the appendicesof this GIA. Prior to
suspension,InterconnectionCustomermust also provide security acceptableto
the TransmissionOwner, equivalent to the higher of $5 million or the total cost of
all Network Upgrades,TransmissionOwner's SystemProtectionFacilities,and
Distribution Upgradeslisted in Appendix A of this GIA. Network Upgrades and
TransmissionOwner InterconnectionFacilities will be constructedon the
scheduledescribedin the appendicesof this GIA unless: (1) constructionis
preventedby the order of a GovernmentalAuthonty: (2) the Network Upgrades
are not neededby any other project: or (3) TransmissionOwner or Transmission
Provider determinesthat a Force Majeure event preventsconstruction. In the
eventof (1), (2), or (3) securityshall be releasedupon the determinationthat the
Network Upgradeswill no longer be constructed.
If Suspensionoccurs,the Transmissionor Distribution System,as applicable,
shall be left in a safe and reliable condition in accordancewith Good Utility
Practiceand the TransmissionProvider's and TransmissionOwner's safetyand
reliability criteria. In such event, InterconnectionCustomer shall be responsible
for all reasonableand necessarycostswhich TransmissionProvider and
TransmissionOwner (i) have incurred pursuantto this GIA prior to the
suspensionand (ii) incur in suspendingsuch work, including any costsincurred to
perform such work as may be necessaryto ensurethe safety of personsand
property and the integrity of the Transmissionor Distribution System,as
applicablg during such suspensionand, if applicable,any costsincurred in
connectionwith the cancellation or suspensionof material, equipment and labor
contractswhich Transmission Provider and TransmissionOwner cannot
reasonablyavoid; provided, however, that prior to canceling or suspendingany
such material, equipment or labor contract,TransmissionProvider and
TransmissionOwner shall obtain InterconnectionCustomer'sauthorization to do
so.
TransmissionProvider and TransmissionOwner shall eachinvoice Intercorurection
Customerfor suchcostspursuantto Article 12 andshall useReasonableEfforts to
minimize its costs. In the event InterconnectionCustomersuspendswork by
TransmissionOwner requiredunder this GIA pursuantto this Article 5.16, and has
not requestedTransmission Owner to recommencethe work required under this GIA
on or before the expiration of three (3) years following cofilmencementof such
suspension,this GIA shall be deemedterminated. The three-yearperiod shall begin
on the date the suspensionis requested,or the date of the written notice to
TransmissionProvider, if no effective dateis specified.
5.16.2 Effect of Missed Interconnection Customer Milestones. If Interconnection
Customerfails to provide notice of suspensionpursuantto Article 5.16, and
Original SheetNo. 32
5.16.3 lnterconnection Customerfails to fuIfilI or complete any Interconnection
CustomerMilestoneprovided in Appendix B ("Milestone"), this constitutesa
Breach under this GIA. Depending upon the consequencesof the Breach and
effectivenessof the cure pursuant to Article 17,the TransmissionOwners'
Milestones may be revised, following consultation with the Interconnection
Customer,consistentwith ReasonableEfforts, and in considerationof all relevant
circumstances. Partiesshall employ ReasonableEfforts to maintain their
remaining respectiveMilestones.
5.16.4 Effect of Suspension;Parties Obligations. In the eventthat Interconnection
Customersuspendswork pursuantto this Article 5.16,no constructionduration,
timelines and schedulesset forth in Appendix B shall be suspendedduring the
period of suspensionunless orderedby a GovernmentalAuthority, with such
order being the Force Majeure event causingthe suspension. Should
InterconnectionCustomerrequestthat work be recommenced,Transmission
Owner shall be obligated to proceedwith ReasonableEfforts and in consideration
of all relevant circumstancesincluding regional outage schedules,construction
availability and material procurementin performing the work as describedin
Appendix A and Appendix B. Transmission Owner will provide Interconnection
Customerwith a revised schedulefor the design,procurement,construction,
installationand testingof the TransmissionOwner's InterconnectionFacilities
and Network Upgrades. Upon any suspensionby InterconnectionCustomer
pursuantto Article 5.16, Interconnection Customer shall be responsiblefor only
thosecostsspecifiedin this Article 5.16.
5.17
Taxes.
5.17.1 Interconnection Customer Payments Not Taxable. The Partiesintend that all
paymentsor property transfersmade by InterconnectionCustomerto
TransmissionOwner for the installationof the TransmissionOwner's
InterconnectionFacilities, Network Upgrades,Transmission Owner's System
Protection Facilities, Dishibution Upgradesand GeneratorUpgradesshall be nontaxable, either as contributions to capital, or as an advance,in accordancewith the
Intemal RevenueCode and any applicable stateincome tax laws and shall not be
taxable as contributions in aid of construction or otherwise under the Internal
RevenueCode and any applicable state income tax laws. To the extent that
TransmissionOwner is a limited liability company and not a corporation, and has
electedto be taxed as a partnership,then the following shall apply: Transmission
Owner represents,and the Partiesacknowledge,that TransmissionOwner is a
limited liability company and is treated as a partnership for federal income tax
purposes. Any payment made by InterconnectionCustomerto Transmission
Owner for Network Upgradesis to be treatedas an up front payment in
accordancewith Rev Proc 2005-35. It is anticipatedby the parties that any
amountspaid by Interconnection Customerto Transmission Owner for Network
Upgradeswill be reimbursedto InterconnectionCustomer in accordancewith the
Original SheetNo. 33
terms of this GIA, provided InterconnectionCustomerfulfills its obligations
under this GIA.
5.17.2
Representationsand Covenants. In accordancewith IRS Notice 2001-82 and
IRS Notice 88-129,InterconnectionCustomerropresentsand covenantsthat
(i) ownership of the electricity generatedat the GeneratingFacility will passto
anotherparty prior to the transmissionof the electricity on the Transmission
System,(ii) for income tax purposes,the amount of any paymentsand the cost
of any property transferredto the Transmission Owner for the Transmission
Owner's InterconnectionFacilitieswill be capitalizedby Interconnection
Customer as an intangible assetand recoveredusing the straight-line method
over a useful life of twenty (20) years, and (iii) any portion of the Transmission
Owner's InterconnectionFacilities that is a "dual-use intertie," within the
meaningof IRS Notice 88-129,is reasonablyexpectedto carry only a de
minimis amount of electricity in the direction of the GeneratingFacility. For
this purpose,"de minimis amount" meansno more than 5 percent of the total
power flows in both directions,calculatedin accordancewith the "5 percent
tesf'set forth in IRS Notice 88-129. This is not intendedto be an exclusivelist
of the relevant conditions that must be met to conform to IRS requirementsfor
non-taxabletreatment.
At Transmission Owner's request,Interconnection Customershall provide
Transmission Owner with a report from an independentengineerconfirming its
representationin clause(iii), above,with a copy to TransmissionProvider.
Transmission Owner representsand covenantsthat the cost of the Transmission
Owner's InterconnectionFacilities paid for by InterconnectionCustomerwill
have no net effect on the baseupon which rates are determined.
5.17.3 Indemnification for the Cost Consequencesof Current Tax Liability Upon
Transmission Owner. NotwithstandingArticle 5.17.1andto the extent
permitted by law, InterconnectionCustomer shall protect, indemnify and hold
harmlessTransmissionOwner from the cost consequencesof any tax liability
imposed againstTransmissionOwner as the result of paymentsor property
transfersmade by InterconnectionCustomerto TransmissionOwner under this
GIA for InterconnectionFacilities, as well as any interest and penalties,other
than interest and penaltiesattributable to any delay causedby Transmission
Owner.
Transmission Owner shall not include a gross-upfor the cost consequencesof
any curent tax liability in the amountsit chargeslnterconnectionCustomer
under this GIA unless (i) Transmission Owner has determined,in good faith,
that the paymentsor property transfersmadeby InterconnectionCustomer to
TransmissionOwner should be reported as income subjectto taxation or (ii) any
GovernmentalAuthority directs Transmission Owner to report payments or
property as income subjectto taxation; provided, however, that Transmission
Owner may require InterconnectionCustomerto provide security for
InterconnectionFacilities, in a form reasonablyacceptableto Transmission
Original SheetNo. 34
Owner (such as a parental guaranteeor a letter of credit), in an amount equal to
or any currenttax liability under this Article 5.17.
the cost consequences
InterconnectionCustomershall reimburse Transmission Owner for such costs
on a fully grossed-upbasis,in accordancewith Article 5.17.4,within thirty (30)
CalendarDays of receiving written notification from Transmission Owner of
the amount due, including detail about how the amount was calculated.
The indemnification obligation shall terminate at the earlier of (1) the expiration
of the ten-yeartesting period and the applicable statuteof limitation, as it may
be extendedby the Transmission Owner upon requestof the IRS, to keep these
years open for audit or adjustment,or (2) the occuffenceof a subsequenttaxable
event and the payrnentof any related indemnification obligations as
contemplatedby this Article 5.17.
s.17.4 Tax Gross-Up Amount. InterconnectionCustomer'sliability for the cost
consequencesof any current tax liability under this Article 5.17 shall be
calculatedon a fully grossed-upbasis. Except as may otherwisebe agreedto by
the parties,this meansthat InterconnectionCustomerwill pay Transmission
Owner, in addition to the amount paid for the InterconnectionFacilities,
Network Upgrades,Transmission Owner's SystemProtection Facilities, and/or
Distribution Upgrades,an amount equal to (1) the current taxes imposed on
TransmissionOwner ("Current Taxes") on the excessof (a) the gross income
realizedby Transmission Owner as a result of paymentsor property transfers
made by InterconnectionCustomer to TransmissionOwner under this GIA
(without regard to any paymentsunder this Article 5.17) (the "Gross Income
Amount") over (b) the presentvalue of future tax deductionsfor depreciation
that will be available as a result of such paymentsor property transfers(the
"PresentValue Depreciation Amount"), plus (2) anadditional amount sufficient
to permit the Transmission Owner to receive and retain, after the payment of all
Current Taxes, an amount equal to the net amount describedin clause (1).
For this purpose,(i) Current Taxes shall be computedbasedon Transmission
Owner's compositefederal and statetax rates at the time the paymentsor
property transfersare received and Transmission Owner will be treated as being
subject to tax at the highest marginal ratesin effect at that time (the "Current
Tax Rate"), and (ii) the PresentValue Depreciation Amount shall be computed
by discounting Transmission Owner's anticipatedtax depreciationdeductions as
a result of such paymentsor property transfersby Transmission Owner's current
weighted averagecost of capital. Thus, the formula for calculating
InterconnectionCustomer'sliability to Transmission Owner pursuant to this
Article 5.17.4can be expressedas follows: (CurrentTax Rate x (Grosslrcome
Amount - PresentValue of Tax Depreciation))/(1-CurrentTax Rate).
InterconnectionCustomer'sestimatedtax liability in the event taxes are imposed
shall be statedin Appendix A, lnterconnectionFacilities, Network Upgrades
and Distribution Upgrades.
Orieinal SheetNo. 35
5 . 1 7.5 Private Letter Ruling or Change or Clarification of Law. At
Interconnection Customer'srequestand expense,Transmission Owner shall file
with the IRS a request for a private letter ruling as to whether any property
transferredor sums paid, or to be paid, by InterconnectionCustomer to
Transmission Owner under this GIA are subject to federal income taxation.
Interconnection Customer will preparethe initial draft of the requestfor a
private letter ruling, and will certify under penaltiesof perjury that all facts
representedin such requestare true and accurateto the best of Interconnection
Customer'sknowledge. TransmissionOwner and Interconnection Customer
shall cooperatein good faith with respectto the submissionof such request.
Transmission Owner shall keep InterconnectionCustomer fully informed of the
stafusof such requestfor a private letter ruling and shall execute either a
privacy act waiver or a limited power of attorney, in a form acceptableto the
IRS, that authorizesInterconnection Customerto participate in all discussions
with the IRS regarding such requestfor a private letter ruling. Transmission
Owner shall allow InterconnectionCustomerto attend all meetingswith IRS
officials about the requestand shall permit InterconnectionCustomerto prepare
the initial drafts of any follow-up letters in connectionwith the request.
s.17.6 Subsequent Taxable Events. If, within 10 years from the date on which the
relevant Transmission Owner's InterconnectionFacilities are placed in service,
(i) Interconnection Customerbreachesthe covenantcontainedin Article 5.17.2,
(ii) a "disqualificationevent" occurswithin the meaningof IRS Notice 88-129,
or (iii) this GIA terminatesand Transmission Owner retains ownership of the
InterconnectionFacilities, Network Upgrades,Transmission Owner' s System
Protection Facilities, and/or Distribution Upgrades,the lnterconnection
Customer shall pay a tax gross-upfor the cost consequencesof any current tax
liability imposed on Transmission Owner, calculatedusing the methodology
describedin Article 5.11.4and in accordancewith IRS Notice 90-60.
5.17.7 Contests. In the event any GovernmentalAuthority determinesthat
Transmission Owner's receipt of paymentsor property constitutesincome that
is subject to taxation, Transmission Owner shall notiff Interconnection
Customer,in writing, within thirty (30) CalendarDays of receiving notification
of such determinationby a GovernmentalAuthority. Upon the timely written
requestby Interconnection Customer and at InterconnectionCustomer'ssole
expense,Transmission Owner may appeal,protest, seek abatementof, or
otherwise oppose such determination. Upon InterconnectionCustomer'swritten
requestand sole expense,Transmission Owner shall file a claim for refund with
respectto any taxes paid under this Article 5.17, whether or not it has received
such a determination. Transmission Owner reserves the right to make all
decisionswith regard to the prosecutionof such appeal,protest, abatementor
other contest,including the selection of counsel and compromise or settlement
of the claim, but Transmission Owner shall keep Interconnection Customer
informed, shall considerin good faith suggestionsfrom Interconnection
Original SheetNo. 36
Customerabout the conduct of the contest,and shall reasonablypermit
InterconnectionCustomeror an InterconnectionCustomerrepresentativeto
attend contestproceedings.
InterconnectionCustomershall pay to TransmissionOwner on a periodic basis,
as invoiced by TransmissionOwner, Transmission Owner's documented
reasonablecosts of prosecuting such appeal,protest, abatementor other contest.
At any time during the contest,Transmission Owner may agreeto a settlement
either with InterconnectionCustomer'sconsentor after obtaining written advice
from nationally-recognizedtax counsel,selectedby TransmissionOwner, but
reasonablyacceptableto InterconnectionCustomer,that the proposedsettlement
representsa reasonablesettlementgiven the hazardsof litigation.
InterconnectionCustomer'sobligation shall be basedon the amount of the
settlementagreedto by InterconnectionCustomer,or if a higher amount, so
much of the settlementthat is supportedby the written advice from nationallyrecognizedtax counselselectedunder the terms of the preceding sentence. The
settlementamount shall be calculatedon a fully grossed-upbasis to cover any
related cost consequencesof the current tax liability. Any settlementwithout
InterconnectionCustomer'Sconsentor such written advice will relieve
InterconnectionCustomerfrom any obligation to indemniff Transmission
Owner for the tax at issue in the contest.
5.17.8 Refund. ln the event that (a) a private letter ruling is issuedto Transmission
Owner which holds that any amount paid or the value of any property
transferredby InterconnectionCustomer to TransmissionOwner under the
terms of this GIA is not subject to federal income taxation, (b) any legislative
changeor administrative announcement,notice, ruling or other determination
makes it reasonablyclear to Transmission Owner in good faith that any amount
paid or the value of any property transferredby InterconnectionCustomerto
Transmission Owner under the terms of this GIA is not taxable to Transmission
Owner, (c) any abatement,appeal,protest, or other contestresults in a
determinationthat any paymentsor transfersmade by InterconnectionCustomer
to TransmissionOwner are not subject to federal income tax, or (d) if
Transmission Owner receivesa refund from any taxing authority for any
overpaymentof tax attributableto any payment or property transfer made by
InterconnectionCustomerto Transmission Owner pursuantto this GIA,
Transmission Owner shall promptly refund to lnterconnection Customerthe
following:
(i) any payrnentmadeby lnterconnection Customerunder this Article 5.17
for taxes that is attributableto the amount determinedto be non-taxable,
togetherwith interest thereon,
(ii) interest on any amountspaid by InterconnectionCustomerto
TransmissionOwner for such taxes which TransmissionOwner did not
submit to the taxing authority, calculatedin accordancewith the
Original SheetNo. 37
methodologyset forth in 18 C.F.R. Section35.19a(a)(2)(iii)from the date
payment was made by Interconnection Customerto the date Transmission
Owner refunds such payment to InterconnectionCustomer,and
(iii) with respectto any such taxespaid by Transmission Owner, any
refund or credit Transmission owner receivesor to which it may be
entitled from any GovernmentalAuthority, interest (or that portion thereof
attributable to the payment describedin clause(i), above) owed to the
Transmission Owner for such overpaymentof taxes (including any
reduction in interest otherwise payable by TransmissionOwner to any
GovernmentalAuthority resulting from an offset or credit); provided,
however, that Transmission Owner will remit such amount promptly to
InterconnectionCustomer only after and to the extent that Transmission
Owner has received a tax refund, credit or offset from any Governmental
Authority for any applicable overpaymentof income tax related to the
TransmissionOwner's InterconnectionFacilitiesThe intent of this provision is to leave both parties, to the extent
practicable,in the event that no taxes are due with respectto any payment
for InterconnectionFacilities and Network Upgradeshereunder,in the
sameposition they would have been in had no such tax paymentsbeen
made.
5.17.9
5.18
Taxes Other Than Income Taxes. Upon the timely requestby Interconnection
Customer, and at Interconnection Customer's sole expense,Transmission
Owner shall appeal,protest, seek abatementof; or otherwise contestany tax
(other than federal or stateincome tax) assertedor assessedagainst
Transmission Owner for which InterconnectionCustomermay be required to
reimburseTransmission Owner under the terms of this GIA. Interconnection
Customer shall pay to Transmission Owner on a periodic basis, as invoiced by
Transmission Owner, Transmission Owner's documentedreasonablecosts of
prosecutingsuch appeal,protest, abatement,or other contest. Interconnection
Customer and Transmission Owner shall cooperatein good faith with respectto
any such contest. Unless the payment of such taxes is a prerequisiteto an
appealor abatementor cannot be deferred,no amount shall be payable by
Interconnection Customerto Transmission Owner for such taxes until they are
assessedby a final, non-appealableorder by atty court or agencyof competent
jurisdiction. In the event that a tax payrnentis withheld and ultimately due and
payable after appeal,Interconnection Customerwill be responsiblefor all taxes,
interest and penalties,other than penalties attributableto any delay causedby
Transmission Owner.
Tax Status. Each Party shall cooperatewith the other Partiesto maintain eachParty's
tax status. Nothing in this GIA is intended to adverselyaffect any Party's tax-exempt
statuswith respectto the issuanceof bonds including, but not limited to, Local
Furnishing Bonds.
Original SheetNo. 38
5.19
Modification.
5.19.1 General. Either Party may undertakemodificationsto its facilities. If a Party
plans to undertakea modification that reasonablymay be expectedto affect
anotherParty's facilities, that Party shall provide to the other Parties sufficient
information regarding such modification so that the other Partiesmay evaluate
the potential impact of such modification prior to commencementof the work.
Such information shall be deemedto be Confidential Information hereunderand
shall include information concerningthe timing of such modifications and
whether suchmodifications are expectedto intemrpt the flow of electricity from
the GeneratingFacility. The Party desiring to perform such work shall provide
the relevant drawings, plans, and specificationsto the other Parties at least ninety
(90) CalendarDays in advanceof the commencementof the work or such shorter
period upon which the Partiesmay agree,which agreementshall not
unreasonablybe withheld, conditioned or delayed.
In the caseof GeneratingFacility modificationsthat do not require
InterconnectionCustomerto submit an InterconnectionRequest,Transmission
Provider shall provide, within thirty (30) CalendarDays (or such other time as
the Partiesmay agree),an estimateof any additional modifications to the
Transmissionor Distribution Systemas applicable,TransmissionOwner's
InterconnectionFacilities, Network Upgrades,Transmission Owner's System
Protection Facilities, and/or Distribution Upgradesnecessitatedby such
InterconnectionCustomermodification and a good faith estimateof the costs
thereof which shall be the responsibility of the InterconnectionCustomer.
5.19.2 Standards. Any additions,modifications,or replacementsmadeto a Party's
facilities shall be designed,constructedand operatedin accordancewith this
GIA and Good Utilitv Practice.
5.19.3
Modification Costs. InterconnectionCustomershall not be directly assigned
the costs of any additions, modifications, or replacementsthat Transmission
Owner makes to the TransmissionOwner's Interconnection Facilities, Network
Upgrades,Transmission Owner' s SystemProtection Facilities, Distribution
Upgrades,or the Transmissionor Distribution System,as applicable, to
facilitate the interconnectionof a third party to the Transmission Owner's
InterconnectionFacilities or the Transmissionor Distribution System,as
applicable,or to provide transmissionserviceto a third party under the Tariff.
InterconnectionCustomershall be responsiblefor the costs of any additions,
modifications, or replacementsto the InterconnectionCustomer's
InterconnectionFacilities that may be necessaryto maintain or upgrade such
Interconnection Customer's InterconnectionFacilities consistentwith
Applicable Laws and Regulations,Applicable Reliability Standardsor Good
Utility Practice.
Original SheetNo. 39
ARTICLE 6. TESTING AND INSPECTION
6.1
Pre-Commercial Operation Date Testing and Modifications. Prior to the Commercial
Operation Date, the Transmission Owner shall test the TransmissionOwner's
InterconnectionFacilities,Network Upgrades,TransmissionOwner's SystemProtection
Facilities and Distribution Upgrades,and Interconnection Customershall test each
electric production device at the GeneratingFacility, InterconnectionCustomer's System
ProtectionFacilities and the InterconnectionCustomer'sInterconnectionFacilities to
ensuretheir safe and reliable operation. Similar testing may be required after initial
operation. TransmissionOwner and InterconnectionCustomer shall make any
modifications to their respectivefacilities that are found to be necessaryas a result of
such testing. InterconnectionCustomer shall bear the cost of all such testing and
modifications. InterconnectionCustomer shall generatetest energy at the Generating
Facility only if it has arrangedfor the delivery of such test energy.
6.2
Post-Commercial Operation Date Testing and Modifications. Each Party shall at its
own expenseperform routine inspection and testing of its facilities and equipment in
accordancewith Good Utility Practiceas may be necessaryto ensurethe continued
interconnection of the GeneratingFacility with the Transmissionor Distribution System,
as applicable, in a safe and reliable manner. Each Party shall have the right, upon
advancewritten notice, to require reasonableadditional testing of the Interconnection
Facilities, at the requestingParty's expense,as may be in accordancewith Good Utility
Practice.
6.3
Right to Observe Testing. Each Party shall notify the other Partiesin advanceof its
performanceof testsof its InterconnectionFacilities. The other Parties shall eachhave
the right, at its own expense,to observesuch testing.
6.4
Right to Inspect. Each Party shall have the right, but shall have no obligation to:
(i) observeTransmissionOwner's and Interconnection Customer's tests and/or inspection
of any of their respectiveSystemProtection Facilities and other protective equipment,
including power systemstabilizers; (ii) review the settingsof the SystemProtection
Facilities and other protective equipment; and (iii) review the maintenancerecords
relative to the InterconnectionFacilities, the SystemProtection Facilities and other
protective equipment. A Party may exercisetheserights from time to time as it deems
necessaryupon reasonablenotice to the other Parties. The exerciseor non-exerciseby a
Party of any such rights shall not be construedas an endorsementor confirmation of any
element or condition of the InterconnectionFacilities or the SystemProtection Facilities
or other protective equipmentor the operation thereof, or as a warranty as to the fitness,
safety, desirability, or reliability of same. Any information that a Party obtains through
the exerciseof any of its rights under this Article 6.4 shall be deemedto be Confidential
Information and treatedpursuantto Article 22 of this GIA.
Original SheetNo. 40
ARTICLE 7. METERING
7.7
General. Each Party shall comply with the Applicable Reliability Council requirements.
Unless otherwise agreedby the Parties,TransmissionOwner, at its election, or otherwise
the Interconnection Customer,shall install Metering Equipment (the "Metering Party'') at
the Point of Interconnectionprior to any operation of the GeneratingFacility and
Transmission Owner, at its election, or otherwise the InterconnectionCustomer shall
own, operate,test and maintain such Metering Equipment. Power flows to and from the
GeneratingFacility shall be measuredat or, atthe Metering Party's option, compensated
to, the Point of Interconnection. The Metering Party shall provide metering quantities, in
analog andlor digital form, to the other Partiesupon request. InterconnectionCustomer
shall bear all reasonabledocumentedcostsassociatedwith the purchase,installation,
operation, testing and maintenanceof the Metering Equipment.
7.2
Check Meters. InterconnectionCustomer,at its option and expense,may install and
operate,on its premisesand on its side of the Point of Interconnection,one or more check
meters to check the Metering Equipment owned by the Metering Party. Such check
meters shall be for check pu{posesonly and shall not be used for the measurementof
power flows for purposesof this GIA, except as provided in ArticleT.4 below. The
check meters shall be subject at all reasonabletimes to inspection and examinationby
TransmissionProvider,TransmissionOwner or their designees.The installation,
operation and maintenancethereof shall be performed entirely by Interconnection
Customer in accordancewith Good Utility Practice.
7.3
Standards. The Metering Party shall install, calibrate, and test revenue quality Metering
Equipment in accordancewith applicableANSI standards.
7.4
Testing of Metering Equipment. The Metering Party shall inspect and test Metering
Equipment upon installation and at least once every two (2) years thereafter. If requested
to do so by a Party, the Metering Party shall, at the requestingParty's expense,inspect or
test Metering Equipment more frequently than every two (2) years. The Metering Party
shall give reasonablenotice to the other Partiesof the time when any inspection or test
shall take place, and the other Partiesmay have representativespresent at the test or
inspection. If at any time Metering Equipment is found to be inaccurateor defective, it
shall be adjusted,repaired or replacedat InterconnectionCustomer'sexpense,in order to
provide accuratemetering, unlessthe inaccuracy or defect is due to the Metering Party's
failure to maintain, then the Metering Party shall pay. If Metering Equipment fails to
register, or if the measurementmade by Metering Equipment during a test varies bymore
than two percent (2%) fromthe measurementmade by the standardmeter used in the test,
the Metering Party shall adjust the measurementsby correcting all measurementsfor the
period during which Metering Equipment was in error by using Interconnection
Customer's check meters, if installed. If no such check meters are installed or if the
period cannot be reasonablyascertained,the adjustmentshall be for the period
immediately preceding the test of the Metering Equipment equal to one-half the time
from the date of the previous test of the Metering Equipment.
SheetNo. 41
7.5
Metering Data. At InterconnectionCustomer'sexpense,the metereddatashall
be telemeteredto one or more locations designatedby TransmissionProvider and
Transmission Owner and one or more locations designatedby InterconnectionCustomer.
Such telemetereddata shall be used, under normal operating conditions, as the official
measurementof the amount of energy delivered from the GeneratingFacility to the Point
of Interconnection.
ARTICLE 8. COMMT]NICATIONS
8.1
Interconnection Customer Obligations. InterconnectionCustomershall maintain
satisfactoryoperatingcommunicationswith TransmissionProvider's Transmission
Systemdispatcheror representativedesignatedby TransmissionProvider.
Interconnection Customershall provide standardvoice line, dedicatedvoice line and
facsimile communicationsat its GeneratingFacility control room or central dispatch
facility through use of either the public telephonesystem,or a voice communications
systemthat doesnot rely on the public telephonesystem. Interconnection Customershall
also provide the dedicateddata circuit(s) necessaryto provide InterconnectionCustomer
data to TransmissionProvider as set forth in Appendix D, Security ArrangementsDetails.
The data circuit(s) shall extend from the GeneratingFacility to the location(s) specified
by TransmissionProvider. Any required maintenanceof such communications
equipment shall be performed by and at the cost of InterconnectionCustomer.
Operational communicationsshall be activated and maintainedunder, but not be limited
to, the following events: systemparalleling or separation,scheduledand unscheduled
shutdowns,equipmentclearances,and hourly and daily load data.
8.2
Remote Terminal Unit. Prior to the Initial SynchronizationDate of the Generating
Facility, a Remote Terminal Unit, or equivalent data collection and transfer equipment
acceptableto both Parties,shall be installed by InterconnectionCustomer, orby
Transmission Owner at Interconnection Customer'sexpense,to gather accumulatedand
instantaneousdatato be telemeteredto the location(s) designatedby Transmission Owner
and TransmissionProvider through use of a dedicatedpoint-to-point data circuit(s) as
indicated in Article 8.1. The communication protocol for the data circuit(s) shall be
specified by TransmissionOwner and TransmissionProvider. Instantaneousbidirectional analogreal power and reactive power flow information must be telemetered
directly to the location(s) specified by TransmissionProvider and Transmission Owner.
Each Party will promptly advise the other Partiesif it detectsor otherwise learns of any
metering, telemetry or communications equipment enors or malfunctions that require the
attention and/or correction. The Party owning such equipment shall correct such error or
malfunction as soon as reasonablvfeasible.
8.3
No Annexation. Any and all equipment placed on the premisesof a Party shall be and
remain the property of the Party providing such equipmentregardlessof the mode and
manner of annexationor attachmentto real property, unless otherwise mutually agreedby
the Parties.
SheetNo. 42
ARTICLE 9. OPERATIONS
9.1
General. Each Party shall comply with the Applicable Reliability Council requirements.
Each Party shall provide to any Party all information that may reasonablybe required by
that Party to comply with Applicable Laws and Regulations and Applicable Reliability
Standards.
9.2
Local Balancing Authority Notification. At leastthreemonthsbefore Initial
SynchronizationDate, the InterconnectionCustomer shall notiff the Transmission
Provider and Transmission Owner in writing of the Local Balancing Authority in which
the GeneratingFacility will be located. If the InterconnectionCustomerelectsto locate
the GeneratingFacility through dynamic metering/schedulingin a Local Balancing
Authority other than the Local Balancing Authority in which the GeneratingFacility is
physically located, and if permitted to do so by the relevant transmissiontariffs, all
necessaryarrangements,including but not limited to those set forth in Article 7 and
Article 8 of this GIA, and remote Local Balancing Authority generatorinterchange
agreements,if applicable, and the appropriatemeasuresunder such agreements,shall be
executedand implemented prior to the placementof the GeneratingFacility in the other
Local Balancing Authority.
9.3
Transmission Provider and Transmission Owner Obligations. TransmissionProvider
shall causethe Transmission System and the Transmission Owner's Interconnection
Facilities to be operated,maintained and controlled in a safe and reliable manner in
accordancewith this GIA. TransmissionProvider, or its designee,may provide operating
instructions to InterconnectionCustomer consistentwith this GIA and Transmission
Provider's and, if applicable,TransmissionOwner's operatingprotocols and procedures
as theymay changefrom time to time. TransmissionProvider will consider changesto
its operating protocols and proceduresproposedby InterconnectionCustomer. The
Interconnection Customer,TransmissionProvider or TransmissionOwner, as applicable,
shall operatethe systemin order to maintain switchyard voltage and frequency within
limits establishedfor safe operation of the GeneratingFacility in accordancewith NRC
Requirementsand Commitments. The InterconnectionCustomerwill be willing to
demonstrateto the Transmission Provider that it obtains Off-site Power Supply Service
consistentwith the requirementsof the TransmissionProvider's Tariff. Transmission
Provider or Transmission Owner, as applicable,shall coordinatewith Interconnection
Customerprior to a changein Applicable Reliability Standardsthat would affect
Interconnection Customer's compliance with NRC Requirementsand Commitments or
the safe and reliable operation of the GeneratingFacility. Accessto and operation of the
switchyard is governedby the provisions in Appendix H.
9.4
Interconnection Customer Obligations. InterconnectionCustomershall at its own
expenseoperate,maintain and control the GeneratingFacility and the Interconnection
Customer's InterconnectionFacilities in a safe and reliable manner and in accordance
with this GIA. The GeneratingFacility must be op'eratedin accordancewith the
operating limits, if any, in the lnterconnectionFacilities Study and specified in Appendix
Original SheetNo. 43
C of this GIA. InterconnectionCustomershall operatethe GeneratingFacility and the
Interconnection Customer's InterconnectionFacilities in accordancewith all applicable
requirementsof the TransmissionProvider or its designatedLocal Balancing Authority
Operator of which the GeneratingFacility is part, as such requirementsare set forth in
Appendix C, InterconnectionDetails,of this GIA. Appendix C, InterconnectionDetails,
will be modified to reflect changesto the requirementsas they may changefrom time to
time. Any Party may requestthat aParty provide copies of the requirementsset forth in
Appendix C,InterconnectionDetails,of this GIA.
9.5
Start-Up and Synchronization. Consistentwith the Parties' mutually acceptable
procedures,the InterconnectionCustomeris responsiblefor the proper synchronization of
the GeneratingFacility to the Transmissionor Distribution System,as applicable.
9.6
Reactive Power.
9.6.1
Power Factor Design Criteria. Interconnection Customer shall design the
GeneratingFacility to be capableof maintaining a compositepower delivery
at continuousrated power output at the Point of Interconnectionat all power
factorsover 0.95 leadingto 0.95 lagging,unlessTransmissionProviderhas
establisheddifferent requirementsthat apply to all generatorsin the Local
Balancing Authority on acomparablebasis. The applicable Local Balancing
Authority power factor requirementsare listed on the Transmission
Provider'swebsiteat
http ://www.midwestmarket.org/paqelGenerator*Interconnection
and may be referencedin the Appendices to this GIA. The Generating
Facility shall be capableof continuous dynamic operation throughout the
power factor design range as measuredat the Point of lnterconnection. Such
operation shall accountfor the net effect ofall energy production devices on
the lnterconnectionCustomer's side of the Point of Interconnection. Unless
demonstratedby study as indicated in Appendix C, the requirementsof this
Article 9.6.1 shall not apply to wind generators.
9.6.2
Voltage Schedules. Once the Interconnection Customerhas synchronized
the GeneratingFacility with the Transmission System,Transmission Provider
shall require InterconnectionCustomer to operatethe GeneratingFacility to
produce or absorbreactive power within the design limitations of the
GeneratingFacility set forth in Article 9.6.1 (Power Factor Design Criteria),
to maintain the output voltage or power factor at the Point of lnterconnection
as specifiedby the TransmissionProvider. Transmission Provider's voltage
schedulesshall treat all sourcesof reactive power in the Local Balancing
Authority in an equitableand not unduly discriminatory manner.
TransmissionProvider shall exerciseReasonableEfforts to provide
Interconnection Customerwith such schedulesat least one (1) day in
advance,and may make changesto such schedulesas necessaryto maintain
Original SheetNo. 44
the reliability of the Transmission or Distribution Systemas applicable.
Interconnection Customer shall operatethe GeneratingFacility to maintain
the specified output voltage or power factor at the Point of Interconnection
within the design limitations of the GeneratingFacility set forth in Article
9.6.1 (PowerFactor Design Criteria). If InterconnectionCustomeris unable
to maintain the specified voltage or power factor, it shall promptly notify
TransmissionProvider's systemoperator, or its designatedrepresentative.
gi.A.Z.tGovernors and Regulators. Wheneverthe GeneratingFacility is operated
in parallel with the Transmission or Distribution Systemas applicable and the
speedgovemors (if installed on the generatingunit pursuant to Good Utility
Practice) and voltage regulators are capableofoperation, Interconnection
Customershall operatethe GeneratingFacility with its speedgovernors and
voltage regulatorsin automatic operation. If the GeneratingFacility's speed
governorsand voltage regulators are not capableof such automatic operation,
the InterconnectionCustomer shall immediately notify Transmission
Provider's system operator, or its designatedrepresentative,and ensurethat
suchGeneratingFacility's reactivepower productionor absorption
(measuredin MVARs) are within the design capability of the Generating
Facility's generatingunit(s) and steady statestability limits. Interconnection
Customershall not causeits GeneratingFacility to disconnectautomatically
or instantaneouslyfrom the Transmissionor Distribution System,as
applicable,or trip any generatingunit comprising the GeneratingFacility for
an under or over frequency condition unlessthe abnormal frequency
condition persistsfor a time period beyond the limits set forth in ANSVIEEE
StandardC31.106, or such other standardas applied to other generatorsin the
Local Balancing Authority on a comparablebasis.
9.6.3 Payment for Reactive Power. Paymentsfor reactive power shall be
pursuantto any tariff or rate schedulefiled by the Transmission Provider
and approvedby the FERC.
9.7
Outages and Interruptions.
9.7.1 Outages.
9.7.1.1 Outage Authority and Coordination. InterconnectionCustomerand
Transmission Owner may each in accordancewith Good Utility Practice
in coordination with the other Party and TransmissionProvider remove
from service any of its respectiveInterconnectionFacilities, System
Protection Facilities, Network Upgrades,SystemProtection Facilities or
Distribution Upgradesthat may impact the other Party's facilities as
necessaryto perform maintenanceor testing or to install or replace
equipment. Absent an Emergency Condition, the Party scheduling a
removal of such facility(ies) from service will use ReasonableEfforts to
notifu one another and schedulesuch removal on a date and time
Original SheetNo. 45
mutually acceptableto the Parties. In all circumstances,any Party
planning to remove such facility(ies) from service shall use Reasonable
Efforts to minimize the effect on the other Partiesof such removal.
9.7.'t.2 Outage Schedules. The TransmissionProvider shall post scheduled
outagesof transmissionfacilities on the OASIS. Interconnection
Customershall submit its planned maintenanceschedulesfor the
GeneratingFacility to Transmission Provider and Transmission Owner
for a minimum of a rolling twenty-four month period in accordancewith
the TransmissionProvider's procedures. Interconnection Customer shall
updateits plannedmaintenanceschedulesaSnecessary. Transmission
Provider may requestInterconnectionCustomer to rescheduleits
maintenanceas necessaryto maintain the reliability of the Transmission
System;provided, however, adequacyof generationsupply shall not be
a criterion in determining Transmission Systemreliability.
TransmissionProvider shall compensate,pursuant to applicable
TransmissionProvider tariff or rate schedule,Interconnection Customer
for any additional direct costs that the InterconnectionCustomer incurs
as a result of having to reschedulemaintenance,including any additional
overtime, breaking of maintenancecontractsor other costs above and
beyond the cost the Interconnection Customerwould have incurred
absentthe TransmissionProvider's requestto reschedulemaintenance.
InterconnectionCustomerwill not be eligible to receive compensation,
if during the twelve (12) months prior to the date of the scheduled
maintenance,the InterconnectionCustomerhad modified its scheduleof
maintenanceactivities.
Costs shall be determinedby negotiation between the Transmission
Provider and Interconnection Customerprior to implementation of the
voluntary changein outage schedules,or if such requestis made by or
on behalf of a TransmissionCustomerrequestingfirm service, costs and
recovery of costs shall be determinedthrough a bilateral agreement
betweenthe Transmission Customer and the Interconnection Customer.
Voluntary changesto outage schedulesunder this Article 9-7.1.2 are
separatefrom actions and compensationrequired under Article 13 and
for which costsare recoveredin accordancewith Transmission
Provider' s applicable tari ff or rate schedule.
9.7.1.3 Outage Restoration. If an outage on either the Interconnection
Customer's or TransmissionOwner's InterconnectionFacilities,
Network Upgrades,SystemProtection Facilities or Distribution
Upgradesadverselyaffects a Party's operationsor facilities, the Party
that owns or controls the facility that is out of service shall use
ReasonableEfforts to promptly restoresuch facility(ies) to a normal
operating condition consistentwith the nature of the outage. The Party
that owns or controls the facility that is out of service shall provide the
Original SheetNo. 46
other Parties,to the extent such information is known, information on
the nature of the Emergency Condition, an estimatedtime of restoration,
and any corrective actions required. Initial verbal notice shall be
followed up as soon as practicable with written notice to the other
Partiesexplaining the nature of the outage.
9.7.2 Interruption of Service. If requiredby Good Utility Practiceto do so,
TransmissionProvider may require InterconnectionCustomerto intemrpt or
reducedeliveriesofelectricity ifsuch delivery ofelectricity could adversely
affect TransmissionProvider's ability to perform such activities as are necessary
to safely and reliably operateand maintain the Transmission System' The
following provisions shall apply to any intemrption or reduction permitted under
this Article 9.7.2:
9.7.2.1 The intemrption or reduction shall continue only for so long as
reasonablynecessaryunder Good Utility Practice;
9.7.2.2 Any suchintemrptionor reductionshall be made on an equitable,nondiscriminatory basis with respectto all generatingfacilities directly
connectedto the Transmission or Distribution System,as applicable;
9.7.2.3 When the intemrption or reduction must be made under circumstances
which do not allow for advancenotice, TransmissionProvider shall
notify InterconnectionCustomerby telephoneas soon as practicable of
the reasonsfor the curtailment, intemrption, or reduction, and, if known,
its expectedduration. Telephonenotification shall be followed by
written notification as soon as practicable;
9.7.2.4 Except during the existenceof an EmergencyCondition, when the
intemrption or reduction can be scheduledwithout advancenotice,
TransmissionProvider shall notify InterconnectionCustomerin advance
regarding the timing of such scheduling and further notify
InterconnectionCustomerof the expectedduration. Transmission
Provider shall coordinatewith the InterconnectionCustomerusing Good
Utility Practiceto schedulethe intemrption or reduction during periods
of least impact to the InterconnectionCustomer,TransmissionOwner
and the TransrnissionProvider;
9.7.2.5 The Partiesshall cooperateand coordinatewith eachother to the extent
necessaryin order to restorethe GeneratingFacility, Interconnection
Facilities, and the Transmission or Distribution System,as applicable to
their normal operating state,consistentwith system conditions and Good
Utility Practice.
9.7.3 Under-Frequency and Over Frequency Conditions. The Transmission System
is designedto automatically activate a load-shedprogram as required by the
Original SheetNo. 47
Applicable Reliability Council in the event of an under-frequencysystem
disturbance. Interconnection Customer shall implement under-frequencyand
over-frequencyrelay set points for the GeneratingFacility as required by the
Applicable Reliability Council to ensure"ride through" capability of the
Tiansmission System. GeneratingFacility responseto frequency deviations of
pre-determinedmagnitudes,both under-frequencyand over-frequency deviations,
rttutt b" studied and coordinatedwith the TransmissionProvider in accordance
with Good Utility Practice. The term "ride through" as used herein shall mean the
ability of a GeneratingFacility to stay connectedto and synchronizedwith the
Transmission Systemduring system disturbanceswithin arange of underfrequency and over-frequency conditions, in accordancewith Good Utility
Practice.
9.7.4 SystemProtection and Other Control Requirements.
9.7.4.1 System Protection Facilities. InterconnectionCustomershall, at its
expense,install, operateand maintain its SystemProtection Facilities as
apartof the GeneratingFacility or the Interconnection customer's
InterconnectionFacilities. TransmissionOwner shall install at
InterconnectionCustomer'sexpenseany Transmission Owner's System
ProtectionFacilitiesthat may be requiredon the TransmissionOwner's
InterconnectionFacilities or the Transmission Owner's transmissionor
distribution facilities as a result of the interconnection of the Generating
Facility and the InterconnectionCustomer's Interconnection Facilities.
9.7.4.2 InterconnectionCustomer's and Transmission Owner's System
Protection Facilities shall be designedand coordinatedwith Affected
Systemsin accordancewith Good Utility Practice.
9.7.4.3 Each Party shall be responsiblefor protection of its facilities consistent
with Good Utility Practice.
9.7.4.4 Each Party's protective relay design shall incorporate the necessarytest
switchesto perform the testsrequired in Article 6. The required test
switcheswill be placed such that they allow operation of lockout relays
while preventing breaker failure schemesfrom operating and causing
unnecessarybreaker operationsand/or the tripping of the Generating
Facility.
9.7.4.5 Each Party will test, operateand maintain their respective System
Protection Facilities in accordancewith Good Utility Practice.
9.7.4.6 Prior to the ln-Service Date, and again prior to the Commercial
OperationDate, InterconnectionCustomeror Transmission Owner, or
their respectiveagents,shall perform a complete calibration test and
functional trip test of the SystemProtection Facilities. At intervals
Original SheetNo. 48
suggestedby Good Utility Practice and following any apparent
malfunction of the SystemProtection Facilities, Interconnection
Customer or TransmissionOwner shall eachperform both calibration
and functional trip testsof their respectiveSystemProtection Facilities.
These tests do not require the tripping of any in-service generatingunit.
These tests do, however, require that all protective relays and lockout
contactsbe activated.
9.7.5 Requirements for Protection. In compliancewith Good Utility Practice,
Interconnection Customer shall provide, install, own, and maintain relays, circuit
breakersand all other devicesnecessaryto remove any fault contribution of the
GeneratingFacility to any short circuit occurring on the Transmissionor
Distribution System,as applicable,not otherwiseisolatedby Transmission
Owner's equipment, such that the removal of the fault contribution shall be
coordinatedwith the protective requirementsof the Transmissionor Distribution
System, as applicable. Such protective equipment shall include, without
limitation, a disconnectingdevice or switch with load-intemrpting capability
located between the GeneratingFacility and the Transmission or Distribution
System, as applicable, at a site selectedupon mutual agreement(not to be
unreasonablywithheld, conditioned or delayed) of the Parties. Interconnection
Customer shall be responsiblefor protection of the GeneratingFacility and
Interconnection Customer'sother equipment from such conditions as negative
sequencecurrents,over- or under-frequency,suddenload rejection, over- or
under-voltage,and generatorloss-of-field. InterconnectionCustomershall be
solely responsibleto disconnectthe GeneratingFacility and Interconnection
Customer'sother equipment if conditions on the Transmission or Distribution
System,as applicable, could adverselyaffect the GeneratingFacility.
9.7.6 Power Quality. Neither Party's facilities shall causeexcessivevoltage flicker
nor introduce excessivedistortion to the sinusoidal voltage or current waves as
definedby ANSI StandardC84.1-1989,in accordancewith IEEE Standard519, or
any applicable supersedingelectric industry standard. In the event of a conflict
betweenANSI StandardC84.1-1989,and any applicablesupersedingelectric
industry standard,the applicable supersedingelectric industry standardshall
control.
9.8
Switching and Tagging Rules. Prior to the Initial SynchronizationDate, eachParty
shall provide the other Parties a copy of its switching and tagging rules that are applicable
to the other Parties' activities. Such switching and tagging rules shall be developedon a
non-discriminatory basis. The Partiesshall comply with applicable switching and
taggSngrules,as amendedfrom time to time, in obtaining clearancesfor work or for
switching operationson equipment.
9.9
Use of Interconnection Facilities by Other Parties.
SheetNo. 49
g.g.1 Purpose of Interconnection Facilities. Except as may be requiredby Applicable
Laws and Regulations,or as otherwise agreedto among the Parties,the
Interconnection Facilities shall be constructedfor the sole purposeof
interconnecting the GeneratingFacility to the Transmissionor Distribution
System, as applicable,and shall be used for no other purpose9.9.2 Other Users. If requiredby Applicable Laws and Regulationsor if the Parties
mutually agree,such agreementnot to be unreasonablywithheld or delayed, to
allow one or more parties to use the TransmissionOwner's Interconnection
Facilities, or any part thereof, InterconnectionCustomerwill be entitled to
compensationfor the capital expensesit incurred in connectionwith the
Interconnection Facilities basedupon the pro rata use of the Interconnection
Facilities by TransmissionOwner, all non-party users,and Interconnection
Customer, in accordancewith Applicable Laws and Regulationsor upon some
other mutually-agreedupon methodology. In addition, cost responsibility for
ongoing costs,including operation and maintenancecostsassociatedwith the
Interconnection Facilities, will be allocatedbetween InterconnectionCustomer
and any non-party usersbasedupon the pro rata use of the Interconnection
Facilities by TransmissionOwner, all non-party users,and Interconnection
Customer, in accordancewith Applicable Laws and Regulationsor upon some
other mutually agreedupon methodology. If the issue of such compensationor
allocation cannotbe resolvedthrough such negotiations,it shall be submitted to
Dispute Resolution pursuantto Section 12 of the Tariff.
9.10
Disturbance Analysis Data Exchange. The Partieswill cooperatewith one anotherin
the analysis of disturbancesto either the GeneratingFacility or the Transmission System
by gathering and providing accessto any information relating to any disturbance,
including information from oscillography, protective relay targets,breaker operationsand
sequenceof eventsrecords, and any disturbanceinformation required by Good Utility
Practice.
ARTICLE 10. MAINTENANCE
10.1
Transmission Owner Obligations. TransmissionOwner shall maintainthe
Transmission Owner's InterconnectionFacilities in a safe and reliable manner and
accordancewith this GIA and all Applicable Laws and Regulations.
L0.2 Interconnection Customer Obligations. InterconnectionCustomershall maintain the
GeneratingFacility and the InterconnectionCustomer's InterconnectionFacilities in a
safe and reliable manner and in accordancewith this GIA and all Applicable Laws and
Regulations.
1.0.3 Coordination. The Partiesshall confer regularly to coordinatethe planning, scheduling
and performance of preventive and corrective maintenanceon the GeneratingFacility and
the Interconnection Facilities.
Original SheetNo. 50
10.4
Secondary Systems. Each Party shall cooperatewith the other in the inspection,
maintenance,and testing of control or power circuits that operatebelow 600 volts, AC or
DC, including, but not limited to, any hardware, control or protective devices,cables,
conductors,electric raceways,secondaryequipmentpanels,transducers,batteries,
chargers,and voltage and current transformersthat directly affect the operation of a
Party's facilities and equipment which may reasonablybe expectedto impact another
Party. Each Party shall provide advancenotice to the other Partiesbefore undertaking
any work on such circuits, especiallyon electrical circuits involving circuit breaker trip
and close contacts,current transformers,or potential transforners.
10.5
Operating and Maintenance Expenses. Subjectto the provisionsherein addressingthe
use of facilities by others, and except for operationsand maintenanceexpensesassociated
with modifications made for providing interconnectionor transmissionservice to a nonparty and such non-party pays for such expenses,InterconnectionCustomer shall be
responsiblefor all reasonableexpensesincluding overheads,associatedwith:
(1) owning, operating,maintaining, repairing, and replacing InterconnectionCustomer's
InterconnectionFacilities; and (2) operation,maintenance,repair and replacementof
Transmission Owner's InterconnectionFacilities to the extent required by the
TransmissionOwner on a comparablebasis.
10.6
NRC Maintenance Rule and NRC Requirements and Commitments;
Decommissioningprovisions are found in Appendix I.
ARTICLE 11. PERFORMANCE OBLIGATION
11.1
Interconneetion Customer's Interconnection Facilities. InterconnectionCustomer
shall design,procure, construct,install, own and/or control the Interconnection
Customer's InterconnectionFacilities describedin Appendix A at its sole expense.
l1..2
Transmission Ownerrs Interconnection Facilities. TransmissionOwner shall design,
procure, construct,install, own and/or control the TransmissionOwner's Interconnection
Facilities describedin Appendix A at the sole expenseof the InterconnectionCustomer.
11.3
Nefwork Upgrades, System Protection Facilities and Distribution Upgrades.
TransmissionOwner shall design,procure, construct,install, and own the Network
Upgrades,Transmission Owner's SystemProtection Facilities and Distribution Upgrades
describedin Appendix A. The InterconnectionCustomershall be responsiblefor all
costsrelatedto Distribution Upgradesand/or GeneratorUpgrades. Transmission Owner
shall provide the TransmissionProvider and InterconnectionCustomerwith written
notice pursuantto Article 15 if the Transmission Owner electsto fund the capital for the
Network Upgradesand Transmission Owner's SystemProtection Facilities; otherwise,
such facilities, if any, shall be solely funded by the InterconnectionCustomer.
11.3.1
Contingencies Affecting Network Upgrades, System Protection Facilities
and Distribution Upgrades. Network Upgrades,SystemProtection Facilities
Original SheetNo. 5l
and Distribution Upgradesthat arerequired to accommodatethe Generating
Facility may be modified because(1) a higher queuedinterconnectionrequest
withdrew or was deemedto have withdrawn, (2) the interconnectionagreement
associatedwith a higher queuedinterconnectionrequestwas terminated prior to
the project's In-ServiceDate, (3) the CommercialOperationDate for a higher
queuedinterconnectionrequestis delayed suchthat facilities required to
accommodatelower queuedprojectsmay be altered,(4) the queueposition is
reinstatedfor a higher-queuedinterconnectionrequestwhose queueposition
was subject to dispute resolution, (5) changesoccur in Transmission Provider or
TransmissionOwner equipment design standardsor reliability criteria giving
rise to the need for resfudy, (6) the facilities required to accommodatea higher
queuedinterconnectionrequestwere modified constituting a Material
Modification pursuantto Section4.4 of the GIP, or (7) a GIA with an effective
date prior to this GIA is terminated. The higher queuedinterconnection
requeststhat could impact the Network Upgrades,SystemProtection Facilities
and Distribution Upgradesrequired to accommodatethe GeneratingFacility,
and possible Modifications that may result from the above listed events
affecting the higher queuedinterconnectionrequests,to the extent such
modif,rcationsare reasonablyknown and can be determined, and estimatesof
the costs associatedwith such required Network Upgrades,SystemProtection
Facilities and Distribution Upgrades,are provided in Appendix A.
11.3.2
ll.4
Agreement to Restudy. The InterconnectionCustomer agreesto enter into an
InterconnectionStudy Agreement,if at anytime before the Network Upgrades,
SystemProtection Facilities and/or Distribution Upgradesassociatedwith
higher queuedinterconnectionrequestswith GIA in effect prior to this GIA are
completed,the Transmission Provider determinesrestudy is required because
one of the contingenciesin Article 11.3.1 occurred,and provides notice to
InterconnectionCustomer. Any restudy shall be performed, as applicable,in
accordancewith Sections6.4, 7.6 and8.5 of the GIP. The Partiesagreeto
amend Appendix A to this GIA in accordancewith Article 30.10 to reflect the
results of any restudy required under this Article 1I.3.2'
TransmissionCredits.
11,4.1
Repayment of Amounts Advanced for Network Upgrades. Interconnection
Customer shall be entitled to a cashrepaymentby the Transmission Owner(s)
and the Affected SystemOwner(s) that own the Network Upgrades,of the
amount paid respectivelyto TransmissionOwner and Affected System
Operator,if any, for the Network Upgrades,as provided under Attachment FF
of this Tariff and including any tax gross-upor other tax-relatedpayments
associatedwith the repayableportion of the Network Upgrades, and not repaid
to InterconnectionCustomerpursuantto Article 5.17.8 or otherwise, to be paid
to InterconnectionCustomeron a dollar-for-dollar basis for the non-usage
sensitiveportion of transmissioncharges,aspaymentsare made under the Tariff
and Affected System'sTariff for transmissionserviceswith respectto the
Orieinal SheetNo. 52
GeneratingFacility. Any repayrnentshall include interestcalculatedin
accordancewith the methodologyset forth in FERC's regulationsat 18 C.F.R.
$ 35.19 (a)(2)(iii) from the dateof any paymentfor Network upgradesthrough
the date on which the Interconnection Customerreceivesa repayment of such
payment pursuantto this subparagraph. Interest shall not accrueduring periods
in which the InterconnectionCustomerhas suspendedconstructionpursuant to
Article 11 or the Network Upgradeshave been determinednot to be needed
pursuantto this Article ll.4.l. InterconnectionCustomermay assignsuch
repayrnentrights to any person.
If the GeneratingFacility is designateda Network Resourceunder the Tariff, or
if there are otherwise no incrementalpayments for TransmissionService
resulting from the use of the GeneratingFacility by TransmissionCustomer,
and in the absenceof anothermutually agreeablepayment scheduleany
repaymentsprovided under Attachment FF shall be establishedequal to the
applicablerate for Firm Point-To-Point Transmission Servicefor the pricing
zone where the Network Load is located multiplied by the portion of the
demonstratedoutput of the GeneratingFacility designatedas a Network
Resourceby the Network Customer(s)or in the absenceof such designation,
equal to the monthly firm single system-wide rate defined under Schedule7
multiplied by the portion of the demonstratedoutput of the GeneratingFacility
under contract to Network Customer(s)and consistentwith studiespursuant to
Section3.2,2.2of the GIP.
Notwithstanding the foregoing, as applicable and consistentwith the provisions
of Attachment FF of this Tariff, Interconnection Customer,Transmission
Provider, TransmissionOwner, and Affected System Operatormay adopt any
alternativepayment schedulethat is mutually agreeableso long as Transmission
Owner and Affected System Operator take one of the following actions no later
than five (5) yearsfrom the CommercialOperationDate: (l) return to
InterconnectionCustomer any amounts advancedfor Network Upgradesnot
previously repaid, or (2) declarein writing that TransmissionOwner or Affected
SystemOperatorwill continue to provide paymentsto Interconnection
Customeron a dollar-for-dollar basis for the non-usagesensitiveportion of
transmissioncharges,or develop an alternative schedulethat is mutually
agreeableand provides for the return of all amountsadvancedfor Network
Upgradesnot previously repaid; however, full reimbursementshall not extend
beyond twenty (20) years from the Commercial Operation Date.
If the GeneratingFacility is installed in phases,the amount eligible for refund as
eachphaseachievesCommercial Operation will be reducedby the proportional
amount of generationcapacity not yet installed. However, all facilities in
Appendix A other than the GeneratingFacility shall be built without
considerationfor the phasing of the GeneratingFacility as though the entire
GeneratingFacility will be placed in Commercial Operation for the fulI output
Original SheetNo. 53
or increasedoutput of the GeneratingFacility constructedby the
Interconnection Customerunder this GIA.
If the GeneratingFacility fails to achieveCommercial Operation,but it or
another generatingfacility is later constructedand makesuse of the Network
Upgtades,Transmission Owner and Affected SystemOperator shall at that time
reimburse InterconnectionCustomer for the remaining applicable amountsthat
may be refundablepursuantto Attachment FF of this Tariff that were advanced
for the Network Upgradeson their respectivesystemsas describedaboveBefore any such reimbursementcan occur, the InterconnectionCustomer,or the
entity that ultimately constructsthe GeneratingFacility, if different, is
responsiblefor identifying the entity to which the reimbursementmust be made.
1L.4.2 Special Provisions for the Transmission Provider as an Affected System to
be covered under SeparateAgreements. When the TransmissionOwner's
Transmission or Distribution System(including for this Article 11.4.2
independentdistribution systemsconnectedto the Transmission System)is an
Affected System for an interconnectionin anotherelectric system,the
Transmission Provider will coordinatethe performanceof Interconnection
Studieswith the other system. The TransmissionProvider will determineif any
Network Upgradesor Distribution Upgrades,which may be required on the
Transmission Systemas a result of the interconnection,would not have been
neededbut for the interconnection. Unless the Transmission Owner provides,
under the interconnection agreementbetweenthe Interconnection Customer and
the other system, for the repaymentof amountsadvancedto the Transmission
Provider or an impacted transmission-owningmember(s) of the Transmission
Provider for Network Upgrades,the InterconnectionCustomer, the
Transmission Provider, and the impacted transmission-owningmember(s) shall
enter into an agreementthat provides for such repaymentby transmission
owner(s) as directed by the TransmissionProvider. The agreementshall specify
the terms governing paymentsto be made by the Interconnection Customerto
the Affected SystemOperator as well as the payment of refunds by the Affected
System Operator.
11.4.3
11.5
Notwithstanding any other provision of this GIA, nothing herein shall be
construedas relinquishing or foreclosing any rights, including but not limited to
firm transmissionrights, capacity rights, transmission congestionrigltts, or
transmission credits, that the Interconnection Customer,shall be entitled to, now
or in the future under any other agreementor tariff as a result of or otherwise
associatedwith, the transmissioncapacity,if any, createdby the Network
Upgrades,including the right to obtain cashreimbursementor transmission
credits for transmissionservice that is not associatedwith the Generating
Facility.
Provision of Security. Unless otherwise provided in Appendix B, at least thirty (30)
CalendarDays prior to the commencementof the design,procurement,installation, or
construction of a discreteportion of an initial elementof the Transmission Owner's
Original SheetNo. 54
InterconnectionFacilities,TransmissionOwner's SystemProtectionFacilities,Network
Upgrades,Distribution Upgradesor Stand-Alone Network Upgrades,or at the request of
Transmission Owner if regulatory approvalsare required for the construction of such
facilities, InterconnectionCustomershall provide TransmissionOwner, at
InterconnectionCustomer'sselection, a guarantee,a surety bond, letter of credit or other
form of security that is reasonablyacceptableto Transmission Owner and is consistent
with the Uniform CommercialCode of the jurisdiction identified in Article 14.2.1. Such
security for payment shall be in an amount sufficient to cover the applicable costs and
cost commitmentsrequired of the Party responsiblefor building the facilities pursuant to
the construction scheduledevelopedin Article l2.l for designing,engineering,seeking
regulatory approval from any Govemmental Authority, constructing, procuring and
installing the applicableportion of TransmissionOwner's InterconnectionFacilities,
TransmissionOwner' s SystemProtection Facilities, Network Upgrades,Distribution
Upgradesor Stand-AloneNetwork Upgradesand shall be reducedon a dollar-for-dollar
basisfor paymentsmadeto TransmissionOwner for thesepurposes.In addition:
11.5.1
The guaranteemust be madeby * entity that meetsthe creditworthiness
requirementsof Transmission Owner, and contain terms and conditions that
guaranteepayment of any amount that may be due from Interconnection
Customer,up to an agreed-tomaximum amount.
11,.5.2 The letter of credit must be issuedby a financial institution reasonably
acceptableto Transmission Owner and must specify a reasonableexpiration
date.
11.5.3
11.6
The suretybond must be issuedby an insurerreasonablyacceptableto
TransmissionOwner and must speciff a reasonableexpiration date.
Interconnection Customer Compensation. If TransmissionProviderrequestsor directs
InterconnectionCustomerto provide a service pursuant to Article 13.4 of this GIA,
Transmission Provider shall compensateInterconnectionCustomerin accordancewith
any tariff or rate schedulefiled by the TransmissionProvider and approvedby the FERC.
ARTICLE 12. INVOICE
12.1
General. Each Party shall submit to the other Party, on a monthly basis, invoices of
amountsdue, if any, for the preceding month. Each invoice shall statethe month to
which the invoice applies and fully describethe servicesand equipmentprovided. The
Partiesmay dischargemutual debts and payment obligations due and owing to each other
on the samedate through neffing, in which caseall amounts aParty owes to the other
Party under this GIA, including interestpayments or credits, shall be netted so that only
the net amount remaining due shall be paid by the owing Party.
12.2
Final Invoice. Within six months after completion of the constructionof the
Transmission Owner's InterconnectionFacilities, Transmission Owner's System
Protection Facilities, Distribution Upgradesand the Network Upgrades,Transmission
Original SheetNo. 55
Owner shall provide an invoice of the final cost of the constructionof the Transmission
Owner's InterconnectionFacilities,TransmissionOwner's SystemProtectionFacilities,
Distribution Upgradesand the Network Upgrades and shall set forth such costsin
sufficient detail to enablelnterconnectionCustomer to comparethe actual costswith the
estimatesand to ascertaindeviations,if any, from the cost estimates. Transmission
Owner shall refund, with interest(calculatedin accordancewith 18 C.F.R. Section
35.19a(a)(2)(iii), to InterconnectionCustomer any amount by which the actual payrnent
by Interconnection Customerfor estimatedcosts exceedsthe actual costs of construction
within thirty (30) CalendarDays of the issuanceof such final constructioninvoice.
12.3 Payment. Invoices shall be renderedto the paying Party at the addressspecified in
Appendix F. The Party receiving the invoice shall pay the invoice within thirty (30)
CalendarDays of receipt. All paymentsshall be made in immediately available funds
payable to the other Party, or by wire transfer to a bank named and accountdesignatedby
the invoicing Party. Payment of invoices by a Party will not constitute a waiver of any
rights or claims that Party may have under this GIA.
12.4 Disputes. In the eventof a billing disputeamongthe Parties,TransmissionProvider
shail continue to provide InterconnectionService under this GIA as l<ingas
Interconnection Customer: (i) continuesto make all paymentsnot in dispute; and (ii)
pays to Transmission Provider or Transmission Owner or into an independentescrow
account the portion of the invoice in dispute, pending resolution of such dispute- If
IntercormectionCustomerfails to meet thesetwo requirementsfor continuation of
service,then TransmissionProvider may or, at Transmission Owner's requestupon
Interconnection Customer's failure to pay, TransmissionOwner, shall provide notice to
Interconnection Customerof a Default pursuant to Article 17. Within thirty (30)
CalendarDays after the resolution of the dispute, the Party that owes money to another
Party shall pay the amount due with interest calculatedin accord with the methodology
setforth in 18 C.F.R.$ 35.19a(a)(2xiii).
ARTICLE 13. EMERGENCIES
13.1 Obligations. Each Party shall comply with the EmergencyCondition proceduresof the
Transmission Provider, NERC, the Applicable Reliability Council, and Applicable Laws
and Regulations.
13.2 Notice. Transmission Provider or Transmission Owner shall notify the other Parties
promptly when it becomesaware of an Emergency Condition that affects the
Transmission Owner's InterconnectionFacilities or the Transmissionor Distribution
System,as applicable,that may reasonablybe expectedto affect Interconnection
Customer'soperation of the GeneratingFacility or the InterconnectionCustomer's
Interconnection Facilities.
Interconnection Customershall notiff TransmissionProvider and Transmission Owner,
which includes by definition if applicable,the operatorof a Distribution System,
Original SheetNo. 56
promptly when it becomesaware of an EmergencyCondition that affects the Generating
Facility or the InterconnectionCustomer's InterconnectionFacilities that may reasonably
be expectedto affect the Transmissionor Distribution System,as applicable, or the
Transmission Owner' s InterconnectionFacilities.
To the extent information is known, the notification shall describethe Emergency
Condition, the extent of the damageor deficiency, the expectedeffect on the operation of
InterconnectionCustomer'sor TransmissionProvider's or TransmissionOwner's
facilities and operations,its anticipatedduration and the corrective action taken and/or to
be taken. The initial notice shall be followed as soon as practicablewith written notice.
13.3
Immediate Action. Unless,in a Party'sreasonablejudgment, immediateaction is
required, the Party exercising suchjudgment shall notiff and obtain the consentof the
other Parties,such consentto not be unreasonablywithheld, prior to performing any
manual switching operationsat the GeneratingFacility or the InterconnectionCustomer's
InterconnectionFacilities in responseto an Emergency Condition either declaredby the
TransmissionProvider or otherwiseregarding the Transmissionor Distribution System,
as applicable.
13.4
Transmission Provider and Transmission Owner Authority.
13.4.1
General. TransmissionProvider or Transmission Owner may take whatever
actions or inactions with regard to the Transmission System or the Transmission
Owner's InterconnectionFacilities it deemsnecessaryduring an Emergency
Condition in order to (i) preservepublic health and safety, (ii) preservethe
reliability of the Transmission Systemor the Transmission Owner's
InterconnectionFacilities, (iii) limit or prevent damage,and (iv) expedite
restorationof service.
TransmissionProvider or TransmissionOwner shall use ReasonableEfforts to
minimize the effect of such actionsor inactions on the GeneratingFacility or the
InterconnectionCustomer's InterconnectionFacilities. TransmissionProvider
or TransmissionOwner may, on the basis of technical considerations,require
the GeneratingFacility to mitigate an Emergency Condition by taking actions
necessaryand limited in scopeto remedy the EmergencyCondition, including,
but not limited to, directing InterconnectionCustomer to shut-down, start-up,
increaseor decreasethe real or reactive power output of the GeneratingFacility;
implementing a reduction or disconnectionpursuant to Article 13.4.2; directing
the InterconnectionCustomerto assistwith blackstart (if available) or
restoration efforts; or altering the outage schedulesof the GeneratingFacility
and the InterconnectionCustomer's InterconnectionFacilities. Interconnection
Customer shall comply with all of Transmission Provider's or Transmission
Owner's operating instructions concerningGeneratingFacility real power and
reactive power output within the manufacturer's design limitations of the
GeneratingFacility's equipmentthat is in service and physically available for
operation at the time, in compliancewith Applicable Laws and Regulations.
Original SheetNo. 57
13.4.2
Reduction and Disconnection. TransmissionProvideror TransmissionOwner
may reduce Interconnection Service or disconnectthe GeneratingFacility ot the
InterconnectionCustomer's InterconnectionFacilities, when such reduction or
disconnectionis necessaryunder Good Utility Practicedue to Emergency
Conditions. Theserights are separateand distinct from any right of curtailment
of the TransmissionProvider pursuant to the Tariff. When the Transmission
Provider can schedulethe reduction or disconnectionin advance,Transmission
Provider shall notiff Interconnection Customerof the reasons,timing and
expectedduration of the reduction or disconnection.TransmissionProvider
shall coordinatewith the Interconnection Customerand Transmission Owner
using Good Utility Practice to schedulethe reduction or disconnectionduring
periods of least impact to the InterconnectionCustomer,Transmission Owner
and the TransmissionProvider. Any reduction or disconnectionshall continue
only for so long as reasonablynecessaryunder Good Utility Practice. The
Partiesshall cooperatewith each other to restorethe GeneratingFacility, the
InterconnectionFacilities, and the Transmission Systemto their normal
operatingstateas soon as practicableconsistentwith Good Utility Practice.
13.5
Interconnection Customer Authority. Consistentwith Good Utility Practiceand this
GIA and the GIP, the Interconnection Customer may take whatever actions or inactions
with regard to the GeneratingFacility or the InterconnectionCustomer's Interconnection
Facilities during an Emergency Condition in order to (i) preservepublic health and
safety, (ii) preservethe reliability of the GeneratingFacility or the Interconnection
Customer's InterconnectionFacilities, (iii) limit or prevent damage,and (iv) expedite
restoration of service. Interconnection Customer shall use ReasonableEfforts to
minimize the effect of such actions or inactions on the Transmission System and the
Transmission Owner's Interconnection Facilities. TransmissionProvider and
Transmission Owner shall use ReasonableEfforts to assistlnterconnection Customer in
such actions,
13.6
Limited Liability. Except as otherwiseprovided in Article 11.6of this GIA, no Party
shall be liable to the other for any action it takes in respondingto an Emergency
Condition so long as such action is made in good faith and is consistentwith Good Utility
Practice.
13.7 Audit. In accordancewith Article 25.3, any Party may audit the performanceof another
Party when that Party declaredan Emergency Condition.
ARTICLE 14. REGULATORY REQTIIREMENTS AND GOVERNING LAW
l4.l
Regulatory Requirements. Each Party's obligations under this GIA shall be subject to
its receipt of any required approval or certificate from one or more Governmental
Authorities in the form and substancesatisfactoryto the applying P*ty, or the Party
making any required filings with, or providing notice to, such GovernmentalAuthorities,
OriginalSheetNo.58
and the expiration of any time period associatedtherewith. Each Party shall in good faith
seek, and if necessaryassistthe other Party and use its ReasonableEfforts to obtain such
other approvals. Nothing in this GIA shall require Interconnection Customerto take any
action that could result in its inability to obtain, or its loss of; statusor exemption under
the FederalPower Act, the Public Utility Holding CompanyAct of 2005, as amended,or
the Public Utility RegulatoryPoliciesAct of 1978.
14.2
Governing Law.
14,2.'1, The validity, interpretation and performanceof this GIA and eachof its
provisions shall be govemed by the laws of the statewhere the Point of
Interconnection is located, without regard to its conflicts of law principles.
14.2.2
This GIA is subjectto all Applicable Laws and Regulations.
14,2.3
Each Party expresslyreservesthe right to seek changesin, appeal,or otherwise
contest any laws, orders,rules, or regulations of a Govemmental Authority.
ARTICLE 15. NOTICES
15.1
General. Unless otherwise provided in this GIA, any notice, demand or requestrequired
or permitted to be given by any Party to the other Parties and any instrument required or
permitted to be tenderedor delivered by aParty in writing to the other Parties shall be
effective when delivered and may be so given, tenderedor delivered, by recognized
national courier, or by depositing the samewith the United StatesPostal Service with
postageprepaid, for delivery by certified or registeredmail, addressedto the Party, or
personally delivered to the Pafiy, at the addressset out in Appendix F, Addressesfor
Delivery of Notices and Billings.
Either Party may changethe notice information in this GIA by giving five (5) Business
Days written notice prior to the effective date of the change.
15.2
Biltings and Payments. Billings and paymentsshall be sent to the addressesset out in
Appendix F.
15.3
Alternative Forms of Notice. Any notice or requestrequired or permitted to be given by
any Party to the other and not required by this GIA to be given in writing may be so
glven by telephone,facsimile or email to the telephonenumbers and email addressesset
out in Appendix F.
15.4
Operations and Maintenance Notice. Each Party shall notiff the other Partiesin
writing of the identity of the person(s)that it designatesas the point(s) of contact with
respectto the implementation of Articles 9 and 10.
SheetNo. 59
ARTICLE 16. FORCE MAJEURE
16.1 ForceMajeure.
16.1.1
Economichardshipis not considereda Force Majeure event.
16.1.2 A Party shall not be consideredto be in Default with respectto any obligation
hereunder,(including obligations under Article 4 and 5), other than the
obligation to pay money when due, if preventedfrom fulfilling such obligation
by Force Majeure. A Party unable to fulfill any obligation hereunder(other
than an obligation to pay money when due) by reasonof Force Majeure shall
give notice and the full particulars of such Force Majeure to the other Parties in
writing or by telephoneas soon as reasonablypossible after the occurrenceof
the causerelied upon. Telephone, facsimile or email notices given pursuant to
this Article shall be confirmed in writing as soon as reasonablypossible and
shall specifically statefulIparticulars of the Force Majeure, the time and date
when the Force Majeure occurred and when the Force Majeure is reasonably
expectedto cease. The Party affected shall exerciseReasonableEfforts to
remove such disability with reasonabledispatch,but shall not be required to
accedeor agreeto any provision not satisfactoryto it in order to settle and
terminate a strike or other labor disturbance.
ARTICLE 17. DEFAULT
17.1
Default
L7.t.L General. No Default shall exist where such failure to dischargean obligation
(other than the payment of money) is the result of Force Majeure as defined in
this GIA or the result of an act or omission of anotherParty. Upon a Breach,
the non-Breaching Party or Partiesshall give written notice of such Breach to
the Breaching Party with a copy to the other Party if one Party gives notice of
suchBreach. Except asprovided in Article I7.1.2, the BreachingParty shall
have thirty (30) CalendarDays from receipt of the Breachnotice within which
to cure such Breach; provided however, if such Breach is not capableof cure
within thirty (30) CalendarDays, the Breaching Party shall commencesuch
cure within thirty (30) CalendarDays after notice and continuously and
diligently complete such cure within ninety (90) CalendarDays from receipt of
the Breach notice; and, if cured within such time, the Breach specified in such
notice shall ceaseto exist.
17.1.2 Right to Terminate. If a Breach is not cured as provided in this Article, or if a
Breach is not capableof being cured within the period provided for herein, the
non-BreachingParty or Parties shall have the right to terminate this GIA by
written notice to the Breaching Party at any time until cure occurs,with a copy
to the other Party if one Party gives notice of such right to terminate, and be
Original SheetNo. 60
relieved of any further obligation hereunderand, whether or not that Party(ies)
terminatesthis GIA, to recover from the Breaching Party all amounts due
hereunder,plus all other damagesand remediesto which it is (they are) entitled
at law or in equity. The provisions of this Article will survive termination of
this GIA.
ARTICLE 1S. LIMITATION
OF LIABILITY, INDEMNITY, CONSEQUENTIAL
DAMAGES AND INSURANCE
18.1
Limitation of Liability. A Party shall not be liable to anotherParty or to any third party
or other person for any damagesarising out of actionsunder this GIA, including, but not
limited to, any act or omission that results in an intemrption, deficiency or imperfection
of Interconnection Service, except as provided in this Tariff. The provisions set forth in
the Tariff shall be additionally applicable to any Party acting in good faith to implement
or comply with its obligations under this GIA, regardlessof whether the obligation is
precededby a specific directive.
18.2
Indemnity. To the extent permitted by law, an Indemnifying Party shall at all
indemnifv. defend and hold the other Partiesharmlessfrom Loss.
18.2.1
Indemnified Party. If an Indemnified Party is entitled to indemnification
under this Article l8 as a result of a claim by a non-party, and the Indemniffing
Party fails, after notice and reasonableopportunity to proceedunder
Article 18.2,to assumethe defenseof such claim, such IndemnifiedParty may
at the expenseof the Indemnifying Party contest,settle or consentto the entry of
any judgment with respectto, or pay in full, such claim.
18.2.2 Indemnifying Party. If an Indemnifying Party is obligated to indemnify and
hold any Indemnified Party harmlessunder this Article 18, the amount owing to
the Indemnified Party shall be the amount of such Indemnified Party's actual
Loss, net of any insuranceor other recovery.
18.2.3 Indemnity Procedures. Promptly after receipt by an Indemnified Party of any
claim or notice of the commencementof any action or administrative or legal
proceedingor investigation as to which the indemnity provided for in
Article 18.2 may apply, the Indemnified Party shall notify the Indenmifytng
Party of such fact. Any failure of or delay in such notification shall not affect a
Party'sindemnification obligation unless such failure or delay is materially
prejudicial to the Indemniffing Party.
The Indemniffing Party shall have the right to assumethe defensethereof with
counseldesignatedby such Indemnifying Party and reasonablysatisfactory to
the Indemnified Party. If the defendantsin any such action include one or more
Indemnified Parties and the Indemnifying Party and if the Indemnified Parfy
reasonablyconcludesthat there may be legal defensesavailable to it and/or
other Indemnified Partieswhich are different from or additional to those
Orieinal SheetNo. 6l
available to the Indemnifuing Party, the Indemnified Party shall have the right
to select separatecounsel to assertsuch legal defensesand to otherwise
participate in the defenseof such action on its own behalf. In such instances,
the Indemnifying Party shall only be required to pay the fees and expensesof
one additional attorney to representan Indemnified Party or Indemnified Parties
having such differing or additional legal defenses.
The Indemnified Party shall be entitled, at its expense,to participate in any such
action, suit or proceeding,the defenseof which has been assumedby the
Indemnifying Party. Notwithstanding the foregoing, the Indemnifyng Party
(i) shall not be entitled to assumeand control the defenseof any such action,
suit or proceedingsif and to the extent that, in the opinion of the lndemnified
Party and its counsel,such action, suit or proceedinginvolves the potential
imposition of criminal liability on the Indemnified Party, or there exists a
conflict or adversity of interestbetweenthe Indemnified Party and the
Indemnifying Party, in such event the Indemnifying Party shall pay the
reasonableexpensesof the Indemnified Party, and (ii) shall not settle or consent
to the entry of any judgment in any action, suit or proceedingwithout the
consentof the Indemnified Party, which shall not be reasonablywithheld,
conditionedor delayed.
18.3
Consequential Damages. Other than the Liquidated Damagesheretofore
described,in no event shall either Party be liable under any provision of this
GIA for any losses,damages,costsor expensesfor any special, indirect,
incidental, consequential,or punitive damages,including but not limited to loss
of profit or revenue,loss of the use of equipment,cost of capital, cost of
temporary equipmentor services,whether basedin whole or in part in contract,
in tort, including negligence,strict liability, or any other theory of liability;
provided; however, that damagesfor which a Party may be liable to the other
Party under another agreementwill not be consideredto be special, indirect,
incidental, or consequentialdamageshereunder.
18.4
Insurance. Each Party shall, at their own expense,maintain in force
throughout the period of this GIA, and until releasedby the other Parties,the
following minimum insurancecoverage's,with insurers authorized to do
businessor an approved surplus lines carrier in the statewhere the Point of
Interconnectionis located:
18.4.1 Employers' Liability and Workers' CompensationInsuranceproviding statutory
benefits in accordancewith the laws and regulations of the state in which the
Point of Interconnectionis located.
18.4.2 Commercial GeneralLiability lnsuranceincluding premisesand operations,
personal injury, broad form property damage,broad form blanket contractual
liability coverage(including coveragefor the contractualindemnification)
products and completed operationscoverage,coveragefor explosion, collapse
Original SheetNo. 62
and undergroundhazards,independentcontractorscoverage,coveragefor
pollution to the extent normally available and punitive damagesto the extent
normally available and a cross liability endorsement,with minimum limits of
Million Dollars
One Million Dollars ($1,000,000)per occurrence/One
personal
for
injury, bodily injury,
($1,000,000)aggregatecombinedsingle limit
including deathand property damage.
18.4.3
ComprehensiveAutomobile Liability Insurance,for coverageof owned and
non-owned and hired vehicles, trailers or semi-trailerslicensed for travel on
public roads,with a minimum combinedsinglelimit of One Million Dollars
($1,000,000)eachoccurrencefor bodily injury, including death,andproperty
damage.
18.4.4
ExcessPublic Liability Insuranceover and abovethe Employer's Liability,
Commercial General Liability and ComprehensiveAutomobile Liability
Insurancecoverage,with a minimum combined single limit of Twenty Million
Dollars ($20,000,000)per occurrence/TwentyMillion Dollars ($20,000,000)
aggregate.
18.4.5
The Commercial General Liability Insurance,ComprehensiveAutomobile
Insuranceand ExcessPublic Liability Insurancepolicies shall name the other
Parties,their parents,associatedand Affiliate companiesand their respective
directors, officers, agents,servantsand employees("Other Parly Group") as
additional insured. All policies shall contain provisions whereby the insurers
waive all rights of subrogationin accordancewith the provisions of this GIA
againstthe Other Party Groups and provide thirty (30) CalendarDays' advance
written notice to the Other Party Groups prior to anniversarydate of
cancellationor any material changein coverageor condition.
18.4.6
The Commercial General Liability Insurance,ComprehensiveAutomobile
Liability Insuranceand ExcessPublic Liability Insurancepolicies shall contain
provisions that specifu that the policies are primary and shall apply to such
extent without considerationfor other policies separatelycarried and shall state
that each insured is provided coverageas though a separatepolicy had been
issued to each,except the insurer's liability shall not be increasedbeyond the
amount for which the insurer would have been liable had only one insured been
covered. Each Party shall be responsiblefor its respectivedeductiblesor
retentions.
18.4.7
The Commercial General Liability Insurance,ComprehensiveAutomobile
Liability Insuranceand ExcessPublic Liability Insurancepolicies, if written on
a Claims First Made Basis, shall be maintained in fuIl force and effect for two
(2) yearsafter termination of this GIA, which coveragemay be in the form of
tail coverageor extendedreporting period coverageifagreed by the Parties.
Original SheetNo. 63
18.4.8
The requirementscontainedherein as to the t1'pesand limits of all insuranceto
be maintainedby the Parties are not intendedto and shall not in any mannsr,
limit or qualify the liabilities and obligationsassumedby the Partiesunderthis
GIA.
18.4.9
Within ten (10) days following executionof this GIA, and as soon as practicable
after the end of each fiscal year or at the renewal of the insurancepolicy and in
any event within ninety (90) days thereafter,each Party shall provide
certification of all insurancerequired in this GIA, executedby each insurer or
by an authorizedrepresentativeofeach insurer.
18.4.10 Notwithstanding the foregoing, eachParty may self-insure to meet the minimum
insurancerequirementsof Articles 18.4.1through 18.4.8,to the extentit
maintains a self-insuranceprogram; provided that, such Party's senior secured
debt is rated at investment grade,or better, by Standard& Poor's and that its
self-insuranceprogram meetsminimum insurancerequirementsunder
Articles 18.4.1through18.4.8. For any period of time that a Party's senior
secureddebt is unratedby Standard& Poor's or is rated at less than investment
gradeby Standard& Poor's, such Party shall comply with the insurance
requirementsapplicableto it under Articles 18.4.1through 18.4.9. In the event
that a Party is permitted to seltinsure pursuantto this article, it shall notifii the
other Party that it meets the requirementsto self-insure and that its
self-insuranceprogram meets the minimum insurancerequirementsin a manner
consistentwith that specifiedin Article 18.4.918.4.11 The Parties agreeto report to eachother in writing as soon as practical all
accidentsor occurrencesresulting in injuries to any person,including death, and
any property damagearising out of this GIA.
ARTICLE 19. ASSIGNMENT
19.l
Assignment. This GIA may be assignedby any Party only with the written consentof
the other Parties;provided that a Parfy may assignthis GIA without the consentof the
other Partiesto any Affiliate of the assigning Party with an equal or greater credit rating
and with the legal authority and operational ability to satisff the obligations of the
assigningParty under this GIA; and provided further that the Interconnection Customer
shall have the right to assignthis GIA, without the consentof either the Transmission
Provider or Transmission Owner, for collateral security purposesto aid in providing
financing for the GeneratingFacility, provided that the lnterconnection Customerwill
promptly notify the Transmission Provider of any such assignment. Any financing
arrangernententeredinto by the InterconnectionCustomerpursuantto this Article will
provide that prior to or upon the exerciseof the securedparty's , trustee's or mortgagee's
assignmentrights pursuant to said arrangement,the securedcreditor, the trusteeor
morrgageewill notify the TransmissionProvider of the date and particulars of any such
exerciseof assignmentright(s), including providing the Transmission Provider and
Transmission Owner with proof that it meetsthe requirementsof Article I 1.5 and 18.4.
Original SheetNo. 64
Any attemptedassignmentthat violates this Article is void and ineffective. Any
assignmentunder this GIA shall not relieve a Party of its obligations,nor shall a Party's
obligations be enlarged,in whole or in part, by reasonthereof. Where required, consent
to assignmentwill not be unreasonablywithheld, conditioned or delayed.
ARTICLE 20. SEVERABILITY
20.1
Severability. If any provision in this GIA is finally determinedto be invalid, void or
unenforceableby any court or other Govemmental Authority having jurisdiction, such
determination shall not invalidate, void or make unenforceableany other provision,
agreementor covenant of this GIA; provided that if the InterconnectionCustomer (or any
non-party, but only if such non-party is not acting at the direction of either the
TransmissionProvider or TransmissionOwner) seeksand obtains such a final
determinationwith respectto any provision of the AlternateOption (Article 5.1.2),or the
NegotiatedOption (Article 5.1.4),then none of theseprovisionsshall thereafterhave any
force or effect and the Parties' rights and obligations shall be governedsolely by the
StandardOption (Article 5.1.1).
ARTICLE 21. COMPARABILITY
Zl.L
Comparability. The Partieswill comply with all applicablecomparabilityand code of
conduct laws, rules and regulations including such laws, rules and regulations of
Govemmental Authorities establishingstandardsof conduct, as amendedfrom time to
time.
ARTICLE 22. CONFIDENTIALITY
22.1
Confidentiality. Confidential Information shall include, without limitation, all
information relating to a Party's technology, researchand development,businessaffairs,
and pricing, and any information supplied by aParty to another Party prior to the
execution of this GIA.
Information is Confidential Information only if it is clearly designatedor marked in
writing as confidential on the face of the document,or, if the information is conveyed
orally or by inspection, if the Party providing the information orally informs the Party
receiving the information that the information is confidential. The Partiesshall maintain
as confidential any information that is provided and identified by aParty as Critical
Energy Infrastructure Information (CEII), as that term is defined in 18 C.F.R.
Section388.113(c). Such confidentialitywill be maintainedin accordancewith this
Article22.
If requestedby the receiving Party, the disclosing Party shall provide in writing, the basis
for assertingthat the information referred to in this Article warrants confidential
Original SheetNo. 65
treatment,and the requestingParty may disclose such writing to the appropriate
GovernmentalAuthority. Each Party shall be responsiblefor the costs associatedwith
affording confidential treatmentto its information.
Z2.l.l
22.1.2
Term. During the term of this GIA, and for a period of three (3) yearsafter the
expiration or tirmination of this GIA, except as otherwiseprovided in this
erticle 22, eachParty shall hold in confidence and shall not disclose to any
person Confi dential Information.
Scope. Confidential Information shall not include information that the
,"""iuing Party can demonstrate: (l) is generally available to the public other
than as a result of a disclosureby the receiving Party; (2) was in the lawful
possessionof the receiving Partyon a non-confidentialbasisbefore receiving it
from the disclosing Party; (3) was supplied to the receiving Party without
restriction by a non-party, who, to the knowledge of the receiving Party after
due inquiry, was under no obligation to the disclosing Party to keep such
. information confidential; (4) was independentlydevelopedby the receiving
Party without referenceto Confidential Information of the disclosing Party;
(5) is, or becomes,publicly known, through no wrongful act or omissionof the
receiving Party or Breach of this GIA; or (6) is required, in accordancewith
Article 22.1.7 of this GIA, order of Disclosure,to be disclosedby any
Govemmental Authority or is otherwise required to be disclosedby law or
subpoena,or is necessaryin any legal proceeding establishingrights and
obligations under this GIA. Information designatedas Confidential Information
will no longer be deemedconfidential if the Party that designatedthe
information as confidential notifies the receiving Party that it no longer is
confidential.
22.1.3 Releaseof Confidential Information. No Party shall releaseor disclose
Confidential Information to any other person, except to its Affiliates (limited by
the Standardsof Conduct requirements),subcontractors,employees,agents,
consultants,or to non-partieswho may be or are consideringproviding
financing to or equity participation with InterconnectionCustomer, or to
potential purchasersor assigneesof Interconnection Customer,on a
need-to-knowbasis in connectionwith this GIA, unless such person has first
been advisedof the confidentiality provisions of this Article 22 and has agreed
to comply with suchprovisions. Notwithstanding the foregoing, a Party
providing Confidential Information to any person shall remain primarily
iesponsible for anyrelease of Confidential Information in contravention of this
Article 22.
ZZ.l.4
Rights. Each Party retains all rights, title, and interest in the Confidential
Information that it disclosesto the receiving Party. The disclosureby a Party to
the receiving Party of Confidential Information shall not be deemeda waiver by
the disclosing Party or any other person or entity of the right to protect the
Confi dential Information from public disclosure.
Original SheetNo. 66
22.1.5
No Warranties. By providing ConfidentialInformation,no Party makesany
warranties or representationsas to its accuracyor completeness.In addition, by
supplying Confidential Information, no Party obligates itself to provide any
particular information or Confidential Information to anotherParty nor to enter
into any further agreementsor proceedwith any other relationship or joint
venture.
22.1.6
Standard of Care. Each Party shall use at leastthe samestandardof careto
protect Confidential Information it receivesas it usesto protect its own
Confi dential Information from unauthorizeddisclosure,publi cation or
dissemination. Each Party may use Confidential Information solely to fulfill its
obligations to anotherParty under this GIA or its regulatory requirements.
22.1.7
Order of Disclosure. If a court or a GovemmentAuthority or entity with the
right, power, and apparentauthority to do so requestsor requires any Party, by
subpoena,oral deposition, interrogatories,requestsfor production of
documents,administrative order, or otherwise, to disclose Confidential
Information, that Party shall provide the disclosing Party with prompt notice of
such request(s)or requirement(s)so that the disclosing Party may seekan
appropriateprotective order or waive compliance with the terms of this GIA.
Notwithstanding the absenceof a protective order or waiver, the Party may
disclose such Confidential Information which, in the opinion of its counsel,the
Party is legally compelled to disclose. Each Party will use ReasonableEfforts
to obtain reliable assurancethat confidential treatment will be accordedany
Confidential Information so furnished.
22.1.8
Termination of Agreement. Upon termination of this GIA for any reason,
eachParty shall, within ten (10) CalendarDays of receipt of a written request
from anotherParty, use ReasonableEfforts to destroy, erase,or delete(with
such destruction,erasure,and deletion certified in writing to the requesting
Party) or return to the requestingPurty, without retaining copies thereof, any
and all written or electronic Confidential Information received from the
requestingParty, except that eachParty may keep one copy for archival
purposes,provided that the obligation to treat it as Confidential Information in
accordancewith this Article 22 shall survive such termination.
22.1.9
Remedies. The Parties agreethat monetary damageswould be inadequateto
compensatea Party for anotherParty's Breach of its obligations under this
Article 22. Each Party accordingly agreesthat the disclosing Party shall be
entitled to equitablerelief, by way of injunction or otherwise,if the receiving
Parfy Breachesor threatensto Breach its obligations under this Article 22,
which equitablerelief shall be grantedwithout bond or proof of damages,and
the Breaching Party shall not plead in defensethat there would be an adequate
remedy at law. Such remedy shall not be deemedan exclusive remedy for the
Breach of this Article 22.but shall be in addition to all other remediesavailable
Orisinal SheetNo. 67
at law or in equity. The Partiesfurther acknowledgeand agreethat the
covenantscontainedherein are necessaryfor the protection of legitimate
businessinterestsand are reasonablein scope. No Party, however, shall be
liable for indirect, incidental, or consequentialor punitive damagesof any
nature or kind resulting from or arising in connectionwith this Article 22.
2 2 . 1 .1 0Disclosure to FERC, Its Staff or a State. Notwithstandinganythingin this
Article 22to thecontrary,andpursuantto 18 CFR $ lb'20, if FERC or its staff,
during the courseof an investigation or otherwise,requestsinformation from a
Party that is otherwiserequired to be maintained in confidencepursuantto this
GIA, the Party shall provide the requestedinformation to FERC or its staff,
within the time provided for in the requestfor information. In providing the
information to FERC or its staff, the Party must, consistentwith 18 CFR
non-public
$ 388.112,requestthat the informationbe treatedas confidentialand
public
from
by FERC and its staff and that the information be withheld
disclosure. Partiesare prohibited from notiffing the other Partiesto this GIA
prior to the releaseof the Confidential Information to FERC or its staff. The
Farty shall notify the other Partiesto this GIA when it is notified by FERC or its
staff that a requestto releaseConfidential Information has been receivedby
FERC, at whiCh time any of the Partiesmay respondbefore such information
would be madepublic, pursuantto 18 CFR $ 388.112. Requestsfrom a state
regulatory body conducting a confidential investigation shall be treatedin a
similar manner if consistentwith the applicable staterules and regulations.
2 2 . t.l L Subjectto the exceptionin Article 22.!.10, any information that a disclosing
Party claims is competitively sensitive,commercial or financial information
under this GIA ("Confidential Information") shall not be disclosedby the
receiving Party to any pe(son not employed or retainedby the receiving Party,
except to the extent disclosureis (i) required by law; (ii) reasonablydeemedby
the receivin gParty to be required to be disclosedin connection with a dispute
between or among the Parties,or the defenseof litigation or dispute;
(iii) otherwise permitted by consentof the disclosing Party, such consentnot to
be unreasonablywithheld; or (iv) necessaryto fuIfilI its obligations under this
GIA or as the Regional Transmission Organization or a Local Balancing
Authority operatorincluding disclosing the Confidential lnformation to a
regional or national reliability organization. The Party assertingconfidentiality
shall notifu the receivingParty in writing of the information that Party claims is
confidential. Prior to any disclosuresof that Party's Confidential Information
under this subparagraph,or if any non-party or GovernmentalAuthority makes
any requestor demandfor any of the information describedin this
subparagraph,the Party who received the Confidential Information from the
disclosing Party agreesto promptly notify the disclosing Party in writing and
agreesto assertconfidentiality and cooperatewith the disclosing Party in
seekingto protect the Confidential Information from public disclosureby
confidentiatity agreement,protective order or other reasonablemeasures.
Orieinal SheetNo. 68
ARTICLE 23. ENVIRONMENTAL
Z3.l
of
Each party shall notify the other Parties,first orally and then in writing, of the release
of
type
any
or
activities,
any HazaidousSubstances,any asbestosor lead abatement
remediation activities related to the GeneratingFacility or the InterconnectionFacilities,
each of which may reasonablybe expectedto affect anotherParty. The notifying Party
good
shall: (i) provide the notice as soon as practicable,provided suchParty makes a
faith effort to provide the notice no later than twenty-four hours after such Party becomes
aware of the o^""n r"n""; and (ii) promptly fumish to the other Partiescopies of any
publicly available reports filed with any Govemmental Authorities addressingsuch
events.
ARTICLE 24. INFORMATION
24.1
RELEASES
REQUIREMENTS
Information Acquisition. TransmissionProvider,TransmissionOwner and the
Interconnection Customershall submit specific information regardingthe electrical
characteristicsof their respectivefacilities to each other as describedbelow and in
accordancewith Applicable Reli ability Standards'
The
initial information submissionby Transmission Provider to InterconnectionCustomer,
with copy provided to TransmissionOwner, shall occur no later than one hundred eighty
(180) Cai"naur Days prior to Trial Operation and shall include Transmissionor
Distribution Systeminformation, as applicable and available,necessaryto allow the
Interconnection Customerto selectequipment and meet any systemprotection and
stability requirements,unless otherwiie mutually agreedto by the Parties- On a monthly
basis, iransmission Owner shall provide InterconnectionCustomera statusreport on the
conskuction and installation of Transmission Owner's InterconnectionFacilities,
Transmission Owner's SystemProtection Facilities, Distribution Upgradesand Network
Upgrades,including, but not limited to, the following information: (1) progressto date;
(3) a description of the action items
1z)-adescription of th" activities since the last report
fot tn" nexf period; and (4) the delivery statusof equipmentordered'
24.2 Information submission by Transmission Provider and Transmission owner
24.3 Updated Information Submission by Interconneetion Customer. The updated
information submissionby the Interconnection Customerto TransmissionProvider, with
copy to Transmission Owner, including manufacturerinformation, shall occur no later
than one hundred eighty (180) CalendarDays prior to the Trial Operation'
Interconnection Customershall submit to TransmissionProvider and Transmission
Owner a completed copy of the GeneratingFacility data requirementscontainedin
Appendix 1 to the GIP. It shall also include any additional information provided to
Tiansmission Provider for the InterconnectionFeasibility Study and Interconnection
Facilities Study. Information in this submissionshall be the most current Generating
Facility design or expectedperformance data. Information submitted for stability models
shall be compatible with TransmissionProvider standardmodels. If there is no
compatible model, the InterconnectionCustomerwill work with a consultantmutually
Original SheetNo. 69
agreedto by Transmission Provider and InterconnectionCustomer to develop and supply
a standardmodel and associatedinformation.
If the InterconnectionCustomer'sdata is materially different from what was originally
provided to Transmission Provider pursuantto the Interconnection Study Agreement
6etweenTransmissionProvider and InterconnectionCustomer, then Transmission
provider will conduct appropriatestudiesto determinethe impact on the Transmission
Systembasedon the actual data submittedpursuantto this Article 24.3. The
InterconnectionCustomer shall not begin Trial Operationuntil such studiesare
completed.
24.4 Information Supplementation. Prior to the Commercial Operation Date, the
parties shall suppl"-"nf lh"i. information submissionsdescribedabove in this Atticle24
with any and all-"as-built" GeneratingFacility information or "as-tested"performance
information that differs from the initial submissionsor, altematively, written
confirmation that no such differencesexist. The InterconnectionCustomer shall conduct
tests on the GeneratingFacility as required by Good utility Practice, such as an open
circuit "step voltage" iest on the GeneratingFacility to verify proper operation of the
GeneratingFacility's automatic voltage regulator.
Unlessotherwiseagreed,the testconditionsshall include: (1) GeneratingFacility at
synchronousspeea;1Z; automaticvoltage regulator on and in voltage control mode; and
yf changein GeneratingFacility terminal voltage initiated by a
1i; a nve percent 6
in the voltage regulatorsreferencevoltage. Interconnection Customer shall
"hu.rg"
pro,rfr" validated test recordings showing the responsesin GeneratingFacility terminal
and field voltages. In the event that direct recordingsof thesevoltages is impractical,
recordings of other voltages or currentsthat mirror the responseof the Generating
Facility's terminal or field voltage are acceptableif information necessaryto translate
these alternatequantities to actual GeneratingFacility terminal or field voltages is
provided. Geneiating Facility testing shall be conductedand results provided to the
lransmission Provider and TransmissionOwner for eachindividual generatingunit in a
station.
Subsequentto the Operation Date, the InterconnectionCustomer shall provide
TransmissionProvider and TransmissionOwner any information changesdue to
equipmentreplacement,repair, or adjustment. Transmission Owner shall provide the
InterconnectionCustomer,with copy to TransmissionProvider, any information changes
due to equipmentreplacement,repair or adjustmentin the directly connectedsubstation
or any adjaient TransmissionOwner substationthat may affect the Interconnection
Customer's InterconnectionFacilities equipmentratings, protection or operating
requirements. The Parties shall provide such information no later than thirty (30)
CalendarDays after the date of the equipmentreplacement,repair or adjustment.
Original SheetNo. 70
ARTICLE 25. INFORMATION
25.1
ACCESS AND AUDIT RIGHTS
Information Access. Each Party (the "disclosingParty'') shall make availableto the
otherpartiesinformation that is in the possessionof the disclosingParty and is necessary
in order for the other Parties to: (i) verify the costsincurred by the disclosing Party for
which anotherParty is responsibleunder this GIA; and (ii) carry out its obligations and
responsibilitiesunder this GIA. The Partiesshall not use such information for purposes
other than those set forth in this Article 25.1 andto enforce their rights under this GIA'
notify
ZS.Z Reporting of Non-Force Majeure Events. A Party (the "notifying Party") shall
with
to
comply
the other parties when the notifying Party becomesaware of its inability
the provisions of this GIA for a reasonother than a Force Majeure event- The Parties
agreero cooperatewith each other and provide necessaryinformation regarding such
inabitity to comply, including the date, duration, reasonfor the inability to comply, and
corrective actionsiaken or planned to be taken with respectto such inability to comply'
Notwithstanding the foregolng, notification, cooperationor information provided under
this Article shali not entitie any Party receiving such notification to allege a causefor
anticipatory breach of this GIA.
ZS.3 Audit Rights. Subjectto the requirementsof confidentiality under Article 22 of this
GIA, each Party shall have the right, during normal businesshours, and upon prior
reasonablenotice to the other Parties,to audit at its own expensethe other Parties'
accountsand recordspertaining to the Parties' performance or the Parties' satisfactionof
obligations unclerthis GIA. Such audit rights shall include audits of the other Parties'
costs,calculation of invoiced amounts,the TransmissionProvider's efforts to allocate
responsibility for the provision of reactive support to the Transmission or Distribution
System,as applicabte,ttre Transmission Provider's efforts to allocate responsibility for
intemrption bi reduction of generation,and each Party's actions in an F,mergency
Condition. Any audit authorizedby this Article shall be performed at the offices where
such accountsand records are maintained and shall be limited to those portions of such
accountsand recordsthat relate to each Party's performance and satisfactionof
obligations under this GIA. Each Party shall keep such accountsand records for a period
equivalent to the audit rigtrts periods describedin Atticle25.4.
25.4
Audit Rights Periods.
ZS.4.l, Audit Rights Period for Construction-Related Accounts and Records.
Accounts and records related to the design, engineering,procurement,and
constructionof Transmission Owner's Interconnection Facilities, Transmission
Owner's SystemProtection Facilities, Distribution Upgrades and Network
Upgradesrlutt U" subject to audit for a period of twenty-four months following
Tiansmission Owner's issuanceof a final invoice in accordancewith
Atticle 12.2.
Original SheetNo. 71
and
ZS.4.Z Audit Rights Period for All Other Accounts and Records. Accounts
records related to a Party's performanceor satisfactionof all obligations under
this GIA other than thosediscribed in Article 25.4.1shallbe subjectto audit as
follows: (i) for an audit relatingto cost obligations,the applicableaudit rights
period shall be twenty-four months after the auditing Party's receipt of an
invoice giving rise to such cost obligations; and (ii) for an audit relating to all
other obligati,ons,the applicable audit rights period shall be twenty-four months
after the event for which the audit is sought'
2S.S Audit Results. If an audit by a Party determinesthat an overpaymentor an
underpaymenthas occurred, a notice of such overpaymentor underpaymentshall be
givenio-the party or from whom the overpaymentor underpaymentis owed together with
those records from the audit which support such determination.
ARTICLE 26. SUBCONTRACTORS
26.l
26.2
26.3
General. Nothing in this GIA shall prevent aParty from utilizing the servicesof any
provided,
subcontractoras it deemsappropriateto perform its obligations under this GIA;
applicable
all
however, that eachParty shall require its subcontractorsto comply with
terms and conditions of this GIA in providing such servicesand eachParty shall remain
primarily liable to the other Party for the performance of such subcontractor.
Responsibility of Principal. The creation of any subcontractrelationship shall not
relieve the hiring Party oiuny of its obligations under this GIA. The hiring Party shall be
fully responsibleto the other Party for the acts or omissions of any subcontractorthe
hiring purty hires as if no subcontracthad been made; provided, however, that in no event
shall the Transmission Provider or Transmission Owner be liable for the actions or
inactions of the Interconnection Customeror its subcontractorswith respectto
obligations of the InterconnectionCustomerunder Article 5 of this GIA. Any applicable
obligation imposed by this GIA upon the hiring Party shall be equallybindingupon, and
shall be construedas having application to, any subcontractorof such Party.
in
No Limitation by Insurance. The obligations under this Article 26 wlll not be limited
aly way by any limitation of subcontractor'sinsurance'
ARTICLE 27. DISPUTES
Z7.l
Submission. In the event any Party has a dispute, or assertsa claim, that arisesout of or
in connectionwith this GIA or its perfonnance, such Party (the "disputing Party'') shall
provide the other Parties with writien notice of the dispute or claim ("Notice of
bispute,,). Such dispute or claim shall be referred to a designatedsenior representativeof
each party for resolution on an informal basis as promptly as practicable after receipt of
the Notice of Dispute by the non-disputing Parties. In the event the designated"
representativesare unable to resolve,theclaim or dispute through unassistedor assisted
negotiationswithin thirty (30) CalendarDays of the non-disputing Parties' receipt of the
Original SheetNo. 72
in accordance
Notice of Dispute, such claim or dispute shall be submitted for resolution
with the dispute resolution proceduresof the Tariff'
ARTICLE28.REPRESENTATIONS,WARRANTIESANDCOVENANTS
Zg.1
General. Each Party makes the following representations,warranties and covenants:
2g.l.l
Zg.l.2
2g.1.3
good
Good Standing. SuchParty is duly organized,validlyexisting and in
standingunder the laws of the state in which it is organized,formed, or
incorpoiated, as applicable; that it is qualified to do businessin the stateor
statesin which the GeneratingFacility, InterconnectionFacilities and Network
Upgradesowned by such Party, as applicable, are located; and that it has the
corlorate power and authority to own its properties,to carry on its businessas
U.ittg conductedand to enter into this GIA and carry out the transactions
1-ro1y
contemplited hereby and perform and carry out all covenantsand obligations on
itsparttobeperformedunderandpursuanttothisGlA.
Authority. Such Party has the right, power and authority to enter into this GIA,
to become a Party hereto and to perform its obligations hereunder. This GIA is
a legal, valid andbinding obligation of such Party, enforceableagainstsuch
party in accordancewith its terms, except as the enforceability thereof may be
limiied by applicablebankruptcy, insolvency, reorganizationor other similar
laws affecting creditors' rights generally and by generalequitableprinciples
(regardlessoiwhether enforceability is sought in a proceedingin equity or at
law).
No Conflict. The execution,delivery and performanceof this GIA doesnot
violate or conflict with the organizationalor formation documents,or bylaws or
operating agreement,of such Party, or any judgment, license,permit, order,
material agreementor instrument applicable to or binding upon such Party or
anv ofits assets.
2g.1.4
Consent and Approval. Such Party has sought or obtained,or, in accordance
with this GIA will seekor obtain, each consent,approval, authoization, order,
or acceptanceby any GovernmentalAuthority in connectionwith the execution,
delivery and peiformance of this GIA, and it will provide to any Govemmental
Authority.roii"" of any actionsunder this GIA that are required by Applicable
Laws and Regulations.
Original SheetNo. 73
ARTTCLE 29. {RESERVED}
ARTICLE 30. MISCELLANEOUS
30.1
upon
Binding Effect. This GIA and the rights and obligations hereof, shall be binding
hereto.
and shall inure to the benefit of the successorsand assignsof the Parties
attachment,
3A.Z Conflicts. In the event of a conflict between the body of this GIA and any
appendicesor exhibits hereto,the terms and provisions of the body of this GIA shall
prevail and be deemedthe final intent of the Parties'
30.3
be
Rules of Interpretation. This GIA, unlessa clearcontraryintention appears,shall
construedand interpreted as follows: (1) the singular number includes the plural number
and vice versa; (2) referenceto any person includes suchperson's successorsand assigns
this GIA,
but, in the caseof a Party, only if such successorsand assignsare permitted by
and referenceto a person in a particular capacityexcludessuch person in any other
capacity or individually; (3) ,"f"r".r"" to any agreement(including this GIA), document,
or
instrument or tariff means such agreement, document, instrument, or tariff as amended
and,
if
thereof
modified and in effect from time io time in accordancewith the terms
applicable,the terms hereof; (4) referenceto any Applicable Laws and Regulations
such Applicable Laws and Regulations as amended,modified, codified, or
*"*,
reenacted,in wlole or in part, and in effect from time to time, including, if applicable,
rules and regulationspromulgated thereunder;(5) unless expresslystatedotherwise,
referenceto any Article, Section or Appendix meanssuchArticle of this GIA or such
Appendix to th-isGIA, or such Sectiot to th" GIP or suchAppendix to the GIP, as the
',
*uy be; (6) "hereundet'', "hereof "hetein", "hereto" and words of similar import
"u."
shall be deemedreferencesto this GIA as a whole and not to any particular Article or
other provision hereof or thereof; (7) "including" (and with correlative meaning
..include") meansincluding without limiting the generality of any description preceding
such term; and (8) relativelo the determinationof any period of time, "from" means
..from and including", "to" means "to but excluding" and "through" means "through and
including".
30.4
Entire Agreement. This GIA, including all Appendicesand Schedulesattachedhereto,
constifutesthe entire agreementbetween the Partieswith referenceto the subject matter
hereof, and superseaesatt prior and contemporaneousunderstandingsor agreements'oral
or written, between the Partieswith respectto the subjectmatter of this GIA. There are
part
no other agreements,representations,warranties,or covenants,which constitute any
obligations
its
with
of the considerationfor, or any condition to, any Party's compliance
under this GIA.
30.5
No Third party Beneficiaries. This GIA is not intendedto and does not createriglrts,
remedies,or benefits of any characterwhatsoeverin favor of any persons,corporations,
associations.or entities other than the Parties,and the obligations herein assumedare
Original SheetNo' 74
solely for the use and benefit of the Parties,their successorsin interest and, where
permitted, their assigns.
30.6 Waiver. The failure of a Party to this GIA to insist, on any occasion,upon strict
performanceof any provision of this GIA will not be considereda waiver of any
obligation, right, or duty of, or imposed upon' such Party'
Any waiver at anytime by any Party of its rights with respectto this GIA shall not be
deemeda continuing waiver or a waiver with respectto any other failure to comply with
any other obligation, right, duty of this GIA. Termination or Default of this IA for any
."uron by the interconnectionCustomershall not constitute a waiver of the
Interconnection Customer'slegal rights to obtain Interconnection Servicefrom the
TransmissionProvider. Any waiver of this GIA shall, if requested,be provided in
writing.
30.7 Headings. The descriptiveheadingsof the various Articles of this GIA have been
inserted for convenienceof referenceonly and are of no significance in the interpretation
or construction of this GIA.
30.8 Multiple Counterparts. This GIA may be executedin two or more counterparts,each of
which is deemedan original but all constitute one and the sameinstrument'
30.9 Amendment. The Partiesmay by mutual agreementamend this GIA by a written
instrument duly executedby all of the Parties.
30.10 Modification by the Parties. The Partiesmayby mutual agreementamendthe
Appendices to this GIA by a written instrument duly executedby all of the Parties. Such
amlndment shall become effective and a part of this GIA upon satisfactionof all
Applicable Laws and Regulations.
3 0 . 1 1 Reservation of Rights. TransmissionProvider shall have the right to make a unilateral
filing with FERC to modiff this GIA with respectto any rates, terms and conditions,
charles, classificationsof service,rule or regulation under Section 205 ot any other
appllcableprovision of the FederalPower Act and FERC's rules and regulations
thireunder, and Transmission Owner and Interconnection Customer shall have the right
to make a unilateral filing with FERC to modify this GIA pursuant to Section 206 ot any
other applicableprovision of the FederalPower Act and FERC's rules and regulations
thereunder;prorrid"d that eachParty shall have the right to protest any sugh filing and to
participate trtty itt anyproceeding before FERC in which such modifications maybe
considered. Nothing i" thir GIA shall limit the rights of the Parties or of FERC under
Sections 205 o1206 of the FederalPower Act and FERC's rules and regulations
thereunder,except to the extent that the Partiesotherwise mutually agteeas provided
herein.
30.12 No partnership. This GIA shall not be interpreted or construedto createan association,
joint venture, agencyrelationship, or partnership among or between the Partiesor to
Original SheetNo. 75
impose any partnership obligation or partnershipliability upon any Party. No Party shall
have any rlg|t, po*"t or authority to enter into any agreementor undertaking for, or act
on behalf ot, orlo act as or be an agentor representativeof, or to otherwise bind, the
other Parties.
Original SheetNo. 76
IN WITNESS WHEREOF, the Parties have executed this Agreement in
originals; eachof which shall constitute and be an original Agreement among the Parties.
Midwest IndependentTransmissionSystem Operator, Inc
g d't=*24-o'?
ITC Midwest LLC
By ITCfloldings,Corp., its sole member
By:
FPL Energy DuaneAmold, LLC
afu
By:
N
' -/" l^
Title: Ui c,c
U, l(efc|,",*
/n r,'Jt.f
Original SheetNo. 77
APPENDICES TO GIA
Appendix A
InterconnectionFacilities and System Protection Facilities, GeneratorUpgrades
and Distribution Upgrades
Appendix B
ReactivePower Capabilities
Appendix C InterconnectionDetails
Appendix D
Security ArrangementsDetails
Appendix E
SubstationComponentsDue Subject to NRC MaintenanceRule
Appendix F
Addressesfor Delivery of Noticesand Billings
Appendix G Commercial Operation Date
Appendix H
Switchyard Operation and Access
Appendix I
NRC MaintenanceRule and NRC Requirementsand Commitments;
Decommissioning.
Appendix J
GeneratingFacility Capacity
Original SheetNo. 78
Appendix A - Plant addition for MISO Project G726
To LGIA
Interconnection Facilities, System Protection Facilities, Distribution Upgrades,
Generator Upgrades and Network Upgrades
1.
Description of Generating Facility
The InterconnectionCustomerowns a majority interestin an existingT15 MVA facility,
nominally rated at 633 MW gross and 598 MW net. The original commercial operating
date of the Generating Facility was February of 7914. The Generating Facility is
composedof one (1) boiling water reactornuclearpower plant. Project G726 consistsof
an upgrade project which will increasethe capacity of the plant's main feedwater pumps
through physical modifications to the plant and the ability to operate the reactor
recirculation pumps at a higher flow rate. Project G726 does not increasethe ?15 MVA
facility rating but increasesthe summerrating of the facility to a nominal rating of 651.5
MW gross and 619 MW net and increasesthe winter rating of the facility to a nominal
rating of 672.5 MW gross and 640 MW net. Seasonalnet capacity ratings of the
GeneratingFacility are calculatedconsistentwith the table in Appendix J.
J
Interconnection Facilities:
Interconnection Customer is interfaced with the Transmission Owner's installed
switchyard with the appropriateprotection equipment coordinatedper Appendix C to this
LGIA. The existing switchyard shall be made available for the output of the Generating
Facility. Refer to AttachmentC.E.1 - TransmissionSwitching Diagram,DAEC.
The InterconnectionCustomeris responsiblefor the existing revenue and Local
Balancing Authority metering. The revenuemetering point shall be on the 22 kV-side of
InterconnectionCustomer's step-uptransformerwith additional details of design to be
provided upon requestby a Party. The InterconnectionCustomer shall meet the
requirementsof the Local Balancing Authority and the Balancing Authority as required
including entering into separateagreementsas needed.
There are five (5) existing Points of Interconnection between the Interconnection
Customer and the Transmission Owner facilities. All of the interconnections are at
equipmentpresently installed in the transmissionswitchyard. The interconnection points
are listed below:
RadwasteSource
o
The "bus" side of disconnect switch 594t. The physical interface point is
where the jumper from the 161 kV bus terminateson switch 594t.
Original SheetNo. 79
The Interconnection Customer and Transmission Owner shall coordinate
operation of Disconnect switches 5941 and 563i such that the capacitor
bank is available to support transmissionsystemoperation,when needed.
GeneratorBreakers
o
The "bus" side of disconnect switch 0237. The physical interface point is
where the jumper from the 161 kv bus terminateson switch 0231.
o
The "bus" side of disconnectswitch 429I. The physical interfacepoint is
wherethe jumper from the 161 kV bus terminateson switch 4291.
StartupTransformer
o
The "bus" side of disconnectswitch 5551. The physical interfacepoint is
wherethe jumper from the 161 kV bus terminateson switch 5551.
o
The "bus" side of disconnectswitch 5555. The physical interfacepoint is
wherethe jumper from the 161 kv bus terminateson switch 5555.
StandbyTransformer
o
'
3.
The "bus" side of disconnectswitch 8491. The physical interfacepoint is
wherethe jumper from the 22kV bus terminateson switch 8497.
34.5kV TransmissionLine
o
The "line" side of disconnect switch 5959. The physical interface point is
where the jumper from the 34.5 kV line terminateson switch 5959.
o
The "line" side of fuse 0675. The physical interface point is where the
jumper from the 34.5 kV line terminateson fuse 0675.
o
The "line" side of fuse 0674. The physical interface point is where the
jumper from the 34.5 kV line terminateson fuse 0674.
o
The "|ine" side of fuse 4912 The physical interface point is where the
jumper from the 34.5 kV line terminateson fuse 4912.
System Protection Facilities
In accordancewith the guidelines of the Applicable Reliability Council, there are no
System Protection Facility modifications required for the proposed G726 DAEC Plant's
increasedcapacity.
4.
The InterconnectionCustomermust notiff the TransmissionProvider and the
TransmissionOwner one day prior to Commercial OperationDate. Such notice will be
provided by the Interconnection Customercompleting Appendix G and sendingthe
completedcopy to the Transmission Provider and the Transmission Owner.
Original SheetNo. 80
Appendix B
To LGIA
Reactive Power Capabilities
The reactive power output capability of the Facility, at the Point of Interconnection,shall
consist of the reactive power output of the generating unit, as determined by the Generator
Reactive Capability Cu,rve (below), minus the plant auxiliary reactive power load and the
reactive po*"t lossesin the step-up transformer, and plus the reactive power supplied by the 42
MVAR switched capacitor bank connectedat 161kV through circuit breaker 5630, as shown on
the figure "Attachment C.E.l TransmissionSwitching Diagram, DAEC." Note that a lagging
po*"i factor at the Point of Interconnection would mean that the facility is injecting reactive
po*"t into the transmission gnd; and a leading power factor would mean that the facility is
absorbingreactive power from the grid.
lpry
4;
ir'
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fi*ifqlCB,rtr U FJITEE flt:r r$rlu6, H gsTr$I'
fi l$r4$ SG ld Hf T&EtF r"iCFjd SSt-tntEFl [&Tlk t]
GrJ{fp.:H€ t$ LliktrfF, F g Y:r*i*d'Tti Fs ffi,ie Erus }.rEstrl;eli!fi
i
..
OriginalSheetNo. 81
Appendix C
To LGIA
Interconnection Details
This Appendix C is a part of this LGIA among Interconnection Customer, Transmission
Owner and the TransmissionProvider.
1.
The unique requirements of each generation interconnection will dictate the
establishment of mutually agreeable Interconnection and/or Operating Guidelines that
further define the requirements of this LGIA. The Interconnection and/or Operating
Guidelines applicable to this LGIA consist of the following information. Additional
detail may be provided through attachment to this Appendix C or through electronic
meansvia the web, as applicable.
(a)
SystemProtectionFacilities;
The TransmissionOwner will constructa protective relaying schemeto protect the
TransmissionSystem from faults occurring on the InterconnectionCustomer's
InterconnectionFacilities or the GeneratingFacility, and from faults occurring on the
TransmissionOwner's InterconnectionFacilities and TransmissionSystem.
InterconnectionCustomerwill be responsiblefor providing protection for the Generating
Facility and all associatedequipmentfrom faults occurring on its facilities, and from
faults occurring on the Transmission Owner's Transmission System'
TransmissionOwner has identified the following specific requirementsto ensureprompt
removal of any contribution of the GeneratingFacility to any short circuit occurring on
the Transmission System and not otherwise isolated by the TransmissionOwner
equipment:
o
Frequency Protection (IEEE 8L). Over-frequencyprotectionfor the Generating
Facility shall be set at the discretionof InterconnectionCustomer. Under-frequency
protectionshall be in accordancewith the, applicableMidwest Reliability
as applicableand as
Organization[MRO or its successor]Standards/Guides
amendedfrom time to time.
o
Interconnection Customer Breaker Failure Protection (IEEE 50BF).
lnterconnection Customer agreesto have breaker failure protection as an integral
part of the redundant relaying protection in support of its breaker on the high side of
the generatorstep-uptransformer. This relayprotection shall be coordinated with
Transmission Owner in order to trip adjacent substationbreakers,in the event the
generatorbreaker fails to successfullyopen for any reason.
o
Synchronism Check Relay (IEEE 25). InterconnectionCustomershall synch
check the GeneratingFacility to the Transmission Systan acrossthe lnterconnection
Customer-ownedbreaker installed on the high side of the generatorstep-up
Original SheetNo. 82
transformers.The TransmissionOwner will provide bus voltagesto be usedfor
synchronism.Each generatingunit of the GeneratingFacility, if more than one unit,
shall include automaticor manual synchronizationof the unit to Transmission
Owner's TransmissionSYstem.
o
Bus Differential Protection (IEEE 87). Interconnection Customer shall provide
Line Current Differential relay with fiber to be connectedinto an identical
TransmissionOwner CurrentDifferential relay which will overlap the bus or step-up
transformer'sprotection. This is to accomplisha bus differential protectionscheme
to provide coordinatedbus differential protectionof TransmissionOwner's bus.
o
Protection Redundancy. [n accordancewith Good Utility Practice,
InterconnectionCustomershall designprotectionschemessuchthat no single
componentfailure will preventthe isolation of faults and failed equipment.
InterconnectionCustomeracknowledgesthat meetingthis requirementgenerally
meansproviding redundantor backupprotectiveschemes,with separatesensing
sources,separatetrip paths,dual trip coils on breakers,separatecontrol power
supplies,etc,provided that InterconnectionCustomerwill provide only one battery
system.
o
(b)
System Protection Facilities (RelaysAs They Relate To Operations).
InterconnectionCustomer shall report all generatorprotective relay eventsto the
Transmission owner system control center,immediately following
InterconnectionCustomer'sdiscovery of the event. Interconnection Customer
shall provide statusindication of automaticvoltage regulator equipment and any
other items that are identified during the detailed design.
The System Protection Facilities for both the Generating Facilities and
Transmission Owner facilities shall meet the current requirements of the
applicable Regional Reliability Organization ("RRO") for system protection
design, disturbancereporting, maintenance,and testing'
Communication requirements;
Consistent with the Transmission Owner and Local Balancing Authority
specificationsin effect as of September20,2005 (Effective Date), and as may be
modified from time to time by agreement of the Parties. Interconnection
Customer shall provide analog and digital signals including hardened voice
communications, as requested by the Transmission Owner andlor the
Transmission Provider for RTU/frame relaylor public switched telephone
systems. Interconnection Customer agrees to transmit these signals to
Transmission Owner's control building or to such other location as specified by
the Transmission Owner. Transmission Owner shall provide Interconnection
Customer with the necessarysubstationinformation at the Transmission Owner's
signals demarcationpoint. InterconnectionCustomerwill pay all costs associated
with receiving such information from Transmission Owner. The specific location
of the dernarcation point will be established during the detailed design of the
InterconnectionFacilities.
SheetNo. 83
(c)
Metering requirements;
- DAEC Substation
The station metering is as detailed on Attachment C.C.l
Metering Scheme. The Transmission Owner installed metering includes
transformer loss compensatedmetering as the metering is located on low side of
the transfofiners feeding the station. The Point of Interconnection is on the high
side of the transformers.
(d)
Grounding requirements;
consistent with the Transmission owner specifications in effect as of the
Effective Date as they may be modified from time to time by agreementof the
parties. Interconnection Customer shall design, install, and maintain grounding
facilities to ground the Interconnection Customer's Interconnection Facilities, in
accordance Applicable Reliability Standards and Good Utility Practice.
Interconnection Customer shall be responsible for detailed modeling and
evaluation of the interconnected gfounding system at the location of the
Transmission Owner's Interconnection Facilities and Interconnection Customer's
InterconnectionFacilities. If Transmission Owner so chooses, Transmission
Owner shall have the right to approve the grounding system design to insure that
the grounding system properly protects the Transmission Owner's Interconnection
Facilities.
(e)
TransmissionLine and substation connection configurations;
SeeAttachmentC.E.l - TransmissionSwitching Diagram DAEC'
(0
Unit Stability requirements;
All generatorlexciterlgovernormanufacturers' data sheetsshall be made available
to the Transmission Owner or its designated agent for modeling in
transienVvoltagestability, short circuit, and relay setting calculation programs.
This includes generatorreactive capability curves and exciter saturationcurves.
Interconnection Customer agrees to operate its Generating Facility within the
operating requirements of the Transmission System, and the rules of the NERC,
Reliability Coordinator and TransmissionProvider.
(e)
Equipment ratings;
Consistent with the Transmission Owner specifications in effect as of the
Effective Date as they may be modified from time to time by agreement of the
parties. Transmission Owner will determine the individual equipment ratings for
specific Transmission Owner's Interconnection Facilities and Network Upgrades.
Interconnection Customer shall size the Interconnection Customer's
Interconnection Facilities using Applicable Reliability Standards, Good Utility
practice and the information provided in the Interconnection Evaluation Study in
order that the Interconnection Customer's Interconnection Facilities appropriately
coordinatewith the Transmission Owner's InterconnectionFacilities.
(h)
Short Circuit requirements;
Original SheetNo. 84
Consistent with the Transmission Owner specifications in effect as of the
Effective Date as they may be modified from time to time by agreementof the
Parties. Transmission Owner will determine the required short circuit ratings for
all Transmission Owner's Interconnection Facilities and Network Upgrades.
Interconnection Customer agreesto provide appropriately sized or short circuitrated Interconnection Customer's Interconnection Facilities comparable to those
required by Transmissionowner using Applicable Reliability standards,Good
Utility Practice.
(')
Synchronizing requirements;
Setting changes of any synchronizing devices shall be approved by the
Transmission Owner or its designated agent, with a hard copy of the changes
forwarded to the TransmissionOwner.
6)
Generationand Operation Control
Consistent with the Transmission Owner specifications in effect as of the
Effective Date as they may be modified from time to time by agreement of the
Parties. In addition to the requirements set forth elsewherein this Appendix C,
the Generating Facility shall be designed and installed with voltage and var
controls. These controls shall comply with any Applicable Reliability Standards,
industry standardsor Good Utility Practice. The lnterconnection Customer shall
contact Transmission Owner for the information required to properly design the
phase of the Generating Facility. Interconnection Customer further shall design
and construct each generating unit of its Generating Facility, if more than one
unit, to include the capability to install power system stabilizersif later required.
Interconnection Customer agrees to comply with the requirements of the
reliability coordinator, Transmission Dispatch Center or ("TDC"), Transmission
Provider andlor TransmissionOwner in the operation of the GeneratingFacility.
(k)
Data provisions;
Consistentwith the Transmission Owner and Local Balancing Authority
specifications in effect as of the Effective Date as they may be modified from
time to time by agreementof the Parties'
Telemetry is required for the monitoring and statusof InterconnectionCustomer's
and Transmission Owner's equipment. InterconnectionCustomer shall install and
pay the installation cost and monthly communication costsof all required
iellmetry for the GeneratingFacility. In general,TransmissionOwner requires
continuous telemetry of the following:
.
Appropriate relaying statusof all installed relay equipment.
Statusof all circuit breaker(s)capableof disconnectingthe Generating
Facility from the Transmission Owner's Transmission System'
InstantaneousMW and MVAR of the GeneratingFacility.
Original SheetNo. 85
Instantaneousrevenuequality MW and MVAR; and cumulative revenue
quality Mwhr and MVARhT at all (or possibly correctedto) Points of
Interconnectionwith TransmissionOwner and from the Generating
Facility.
Statusof auxiliary station service circuit breaker(s)'
GSU bus voltage(s).
Instantaneous
Transfer trip communication and generationsite transfer trip
communication status.
Changesin energy production of the GeneratingFacility'
Other telemetry as required and mutally agreedupon by the
InterconnectionCustomer and Transmission Owner'
(l)
Energization inspection and testing requirements;
The Transmission Owner and Generating Facility Interconnection Facilities were
initially inspectedand tested to support an operationsdate of February, 1974.
There i, ,r-r"q,rirement for additional inspection or testing upon completion of
the lnterconnection Customersproposed G726 increasedplant capacity'
If applicable, the unique requirements, if any, of the Transmission Owner to
which the facility will be physically interconnected;
Any changesto the Generating Facility net VAR capabilities, including changes
to either net static or net dynamic capability' shall be approved by the
Transmission Owner or its designated agerrt, such approval shall not be
unreasonablywithheld.
(m)
Power FactorDesign Criteria;
Interconnection Customer's Generating Facility is designed to maintain power
factor of 0.95 leading to 0.95 lagging at the Point of Interconnection.
Interconnection Customer agreesto operateits GeneratingFacility, as directed, to
produce or absorbreactive power at the Point of Interconnectionwithin the design
limitations of the GeneratingFacility.
(n)
Switching and Tagging;
The InterconnectionCustomer shall comply with the Transmission Owner's or its
designatedagent's most recent version of the switching and tagging procedures.
(o)
Data reporting requirements;
The Interconnection Customer shall provide operating data and equipment
modeling to Transmission Owner or its designated agent and/or the appropriate
Regional Reliability Orgarnzationto support the following:
Original SheetNo. 86
-
NERC ComPlianceProgram(s)
-
RegionalReliabilityorganizatroncomplianceProgram(s)
-
Federal, State,and Local Regulatory programs
The Intercorurection Customer will annually forecast the firm MW and MVAR
the
usage on each plant reserve station auxiliary system for periods when
generatoris on-line, and starting/stopping,and provide the information annually
to the Transmission Owner or its designatedagent.
InterconnectionCustomer shall supply all information regarding events and status
of equipmentwithin the GeneratingFacility upon requestfor any event that
noticeably affects the operation of the TransmissionSystem. Interconnection
Customei shall provide outage schedules,daily&ourly load profiles, and other
data upon requestof Transmission Owner'
(p)
Training;
(q)
Interconnection Customer and Transmission Owner or its designated agent shall
provide the necessarytraining to insure the reliability of the electric transmission
grid, in both normal and emergencyconditions.
capacity determination and verification (including ancillary services and
certification);
(')
The Interconnection customer shall comply with the capacity Determination
rules of the Regional Reliability Region that the Transmission Owner is a member
of.
Emergencyoperations,including systemrestorationand black start arrangements;
The Interconnection Customer shall provide the Transmission Owner or its
designatedagentwith plant data and plant proceduresnecessaryto coordinate and
implement the Transmission Owner or its designatedagentblack-start plans. The
InterconnectionCustomer will participate in black-start drills as requested-
(s)
Identifi ed must-run conditions;
There are no identified must-run conditions.
(t)
Provision of ancillary services;
(u)
Interconnection Customer shall provide Ancillary Services to Transmission
Owner or its designatedagent as required by the Tariffand/or the Power Purchase
Agreement, as applicable.
Specific transmission requirements of nuclear units to abide by all NRC
Requirementsand Commitments;
Interconnection Customer, Transmission Provider, Transmission Owner or their
designatedagents,as applicable, shall comply with applicable NRC Requirements
and Commitments, conceming offsite supply of energy to nuclear units and
station black out recovery action.
Original SheetNo. 87
(v)
(w)
Stability requirements,including generation short circuit ratio considerations;
meet the
The stability and short circuit ratio considerations are those needed to
applicable Regional Reli ability or ganizatronrequirements.
Limitations of operationsin support of emergencyresponse;
Interconnection Customer shall comply with directives of the Transmission
to insure
owner or its designated agent in its role as Reliability coordinator
reliability of the electrictransmissiongrid.
(x)
Maintenance and Testing;
Facility
The Transmission owner Interconnection Facilities and Generation
of
Interconnection Facilities shall be tested and maintained with a combination
condition basedand frequencybasedprograms following Good Utility Practices'
NERC
The facilities shall be iested and maintained in accordance with the
Reliability Standardsand Regional Reliabili ty ot ganizationProgram.
Orignd SheetNo.88
AttashmentC.8.1.- TransmissionSwitchingDtagramDAEC
CEII Material
Orignal SheetNo.89
AttachmentC.C.l- DAEC SubststlonMetering Scheme
CEII Material
Original SheetNo. 90
Appendix D
TO LGIA
SecurifY Arrangements Details
Infrastructure security of Transmission System or Distribution System equipment and
operations,as applicable, and control hardware and software is essentialto ensureday-to-day
Tiansmission System and Distribution System reliability and operational security. The Parties
shall comply with the recommendations provided by Governmental Authorities regarding
Critical Energy Infrastructure Information ("CEII") as that term is defined in 18 C'F'R' $
383.l l3(c) and best practicerecommendationsfrom the electric reliability authority. The Parties
will be expected to meet basic standards for system infrastructure and operational security,
including physical, operational,and cyber-securitypractices'
Original SheetNo. 9l
Appendix E
To LGIA
NMC*.-@
d toNuc!ear Exce*rpffi
Committe
DAEC Maintenance
Rule Program
DAEC
Performance Criteria Basis Document
Offsite Power
87.00
sus 1.00,3.00,86.00,
Revision 4
Preparedby:
MaintenanceRule Coordinator
Reviewedby:
SystemEngineer
Reviewedby:
Risk AssessmentRePresentative
Reviewed by:
Expert Panel RePresentative
Implementation Date: | 122/09
Original SheetNo. 92
Item Overview:
Components and functions of several Startup Systems have been combined for monitoring
purposes into the Offsite Power Trended System. The purpose of Offsite Power is to Provide
accessto offsite power for plant equipmeni. The Startup Systems are su! 01.00 Switchyard,
SUS 03.00 StartupTransformer,SUS 86.00 StandbyTransformer,SUS 87.00 Main Transformer
from other
/Auxiliary Transformer and Isophase Buses. There are also a few components
systemsdue to their effect on Offsite Power controls and cooling. (SeeItem Boundaries)
for safetyThis system is within the scope of the Maintenance Rule becauseit supplies power
portions of
related equipment under norrnal conditions (no Loss-of-offsite-Power) and failure of
in
a reactor
or
15.6.4)
(Ref.
UFSAR
this systemian result in a scramor safety-relatedactuation,
Mode F
vesselcoolantinventory decrease.It is aisonoted in the NSOA for Mode A (refuel) and
(run). It performs both an operating and a standby function, and is used during reactor operation
and-startup/shutdown evolutions and when the reactor is shutdown. Ref: SD-304 and UFSAR8 . 1 , 8 . 2a, n d8 . 3 .
Item Boundaries:
shall
For the pu{pose of l0 C.F.R. $ 50.65 monitoring, the Offsite Power Trended System
consistof all SSC'slisted under SUS 01.00,03.00,86.00and 87.00in the CHAMPS database,
the
from the low voltage side of the Startup, Standby, Main, and Auxiliary Transforrners' and
to the
output of the MairiGenerator, to the Offsite power side of the switchyard breakers out
or
effect
if
they
scope
edge of the owner-controlled area(all activitiei within this areaare within
with
cai potentially effect DAEC MaintenanceRule Program functions or performancecriteria),
(LQ),
5940
5960,
Breakers
the exception of the lines and other equipmentbounded and including
Transformer TZ, and LLRPSF Transfonners lXRl and iXR2. (This independent LLRPSF
power source is monitored with the Instrument Air System.) A11of the control instrumentation
point
for the aforementionedin-scope equipment, and GSW cooling piping and valves from the
the
at which they serve only components in the Offsite Power Trended System, along with
scope'
in
also
electrical breakers and cables which directly supply and control them, are
principally, in-scope equipment constitutes the large transformers (including Tl) and
345116l/34.5KVA| UreakeisA, B, C, D, F, G, H, I, J, K, M, S, T, R and AB' (SeeAttachment
l.)
Non-Nuclear Instrumentation :
No other instrumentation outside of those already discussed (such as non-nuclear
instrumentation) directly impact the function of offsite Power.
Original SheetNo. 93
Prob abilistic Safefy Assessment Information :
following FusselIn l994,using Revision 1 of the PSA model, Nuclear Analysis estimatedthe
Offsite Power
Vessely Importance Ratio's (FV) and Risk Achievement Worth (RAW) for the
L e v e l1 R A W
1
1
,
2
F
V
i
s
t r e n d e d s y s t e m :s u s 0 1 . 0 0 , A C P o w e r L e v eIl F V i s 3 5 . I o , L e v e l
Level 2 FV is
is 44,and Level 2 RAW is 11. SUS 03.00, StartupTransformer,Level 1 FV is 0,
1 FV is 0,
0, Level 1 RAW is 2.5 and Level 2 RAW is 1.0. sus 96, standby Transformer,Level
Level2 FV is 0, Level 1 RAW is 1.0 and Level 2 RAW is 1'0'
50'65
These figures in total met the criteria for a Risk Significant system in the 10 C'F'R' $
as an
progru-. A review of the AC power cutsetsfound that loss of Offsite power is viewed
initiator event with no distinct cause.
Using Revision3 of the PSA model in 1996,the following valueswere obtained:
LEVEL i
SUS1/87
SUS3
SUS86
FV
42.1%
6J%
0
RAW
56.0
3.4
1.0
LEVELZ
RAW
5.5
7.0
1-0
FV
14.7%
6.9%
0
using Revision4 of the PSA model (1999),the following valueswere obtained:
LEVEL 1
SUS1i87
SUS3
SUS86
RAW
76.7
3.8
1.0
FV
ss.8%
2.s%
0
LEVELZ
RAW
1.9
8.9
1.0
FV
30.4%
t.l%
0
as an
The switchyard was not modeled in detail in PSA Revisions 1 and 3. (LOOP is treated
for
per
demand
and
3E-3
initiator.) In Revision 4, a failure probability of 1.448-5 transformers
per
days
breakers was used. Transformer unavailability for maintenancewas estimatedat seven
year.
Expert Panel Notes:
Startup
ln 1994,the Expert Panel noted that the individual effects of these SUS, particularly the
Loss of
Transformer, may not be as great as the sum of the whole Offsite Power system, as
considered
be
should
Offsite power is an initiator in the model. Loss of non-essentialbusses
when developing performancecriteria.
Startup
The Expert panel questioned the basis for initially setting the unavailability of a
Panel
Transformer feed at lYo while a Standby Transformer feed was at ZYo. The Expert
Station
with
requestedthat it be ensured that the performance levels selectedwere compatible
also
Blackout assumptionsand the PSA model for Loss of Offsite Power. The Expert Panel
Original SheetNo. 94
onsile Emergency Diesel
questioned why an offsite feed required higher availability than the
LLRWSF transformers under
Generators. The Expert Panel recommendedthe deletion of the
as the only critical load on
this system and as an alternativeto monitor theseunder SUS 18.00,
panel
also noted that upcoming
this transformer is the Instrument Air compressors. The Expert
challenge to
performance
a
ten year inspections on the system would likely result in
year trend'
u.rurruilubilitythat would not be observedin the previous three
feeds were adjustedto all
In responseto the above, the unavailability targets for the transformer
occurrenceofLoss
be20/o.Areviewof thelpEsubmittalof lggiindicatesthatafrequencyof
the model basedon Station
of Offsite power initiators of 0.117 perreactoryear was selectedfor
criteria looking at essential
Blackout (NUMARC g7-00) rnethodologies. For the performance
an inservice failure rate
busses,an allowed unavailability of the-Standby of 2o/ocombined with
only a fraction ('01) of the
for the remaining power feed of 0.5 per year would result in
('117)'
frequenciesof losi of Offtit" power to the essentialbussesassumed
to the Instrument
The performance criteria related to the LLRWSF transformer was consolidated
Air System.
Rule, the Expert Panel
In799l,following commentsin a QA assessmentof the Maintenance
into the switchyard to the
recommendedadjusting the system boundaries from the first breaker
was noted there were some
last breaker prior to an Offsite line leaving the switchyard. It
sources' It was noted the
switchyard breakers which could fail with no impact on power
4 estimatesfor
proposednew criteria for switchyard breakerswas tougher than the PSA Revision
failure rate.
criteria to reflect the fact
In late z002,the panel split the offsite power breaker criteria into two
M) can prevent offsite
(except
breaker
that a ring bus is used such that loss of no single breaker
offsite power to the
power from being supplied. The Function *u, reset at the ability to supply
ring bus breakers
Startup, Standby and Auxiliary transforners. Monitoring of the individual
latter half of 2003
(excepting M) was now to be done at the Condition Monitoring Level. In the
the criteria still was not
the panel looked again at the offsite power breaker criteria, as it was felt
ring bus structure of
properly weighing-the value of the u*ior"r, switchyard breakers, given the
does not result in loss of
the switchyard and the fact that loss of a single bieaker in most cases
into "islands" on some
any of the offsite power source supplies. The breakup of the switchyard
supplying offsite
grid disturbancesshould also be taken into account. The panel also noted that
and need
activity
not a common or expectedemergency
io*", to the auxiliary transformer was
not be monitored. Revised criteria were approved'
Required 10 C.F.R. $ 50.65 Coverage:
program:
The following functions of this systemfall under the 10 C'F'R' $ 50'65
l.
provide a (normal) Offsite power source for the safety-relatedbusses, 1A3 and 1A4'
Offsite power can be suppliedby either the Starfup or Standbytransformers.
Original SheetNo. 95
Z.
busses
Supply power, either via the generatoror from Offsite sources,to non-essential
lAl and 1A.2.
hooked into the
Both of these functions are continuous. The Standby Transformer is normally
power to the plant'
offsite power grid and is energizedand operational,but is not supplying any
and Standby
Technical Specifications 3.g. require that two offsite sources(including the Startup
the 4KV emergency
transformerr; U" available and capableof automatically supplying powel to
startup or Standby
buses before the reactor is made critical. operation with either the
two independent
transformer inoperable is allowed under some circumstances. GDC 17 requires
the Standby
where
cases
offsite power sources(UFSAR 3.1-14)to the essentialbusses. In some
monitoring
Transformer is supplying the ..r".rtiul busses, as during startup Transformer
A transfer
unloaded'
but
equipment maintenance,tle StartupTransformer may be left energized
only a limited
of the essentialbussesfrom the Standbyto the startup Transformer would require
and while in the
amount of time (estimated at five minutes or less by two experienced SROs)
automatic transfer
unloaded condition, the Startup Transformer would still be able to accept the
(the Auxiliary
of Non-EssentialBuses 1Al and lA2 upon loss of their normal power supply
automatic
or
slow
Transformer) due to a generatortrip. rne oegc PRA does not model for fast
transfersin either
transfersbetween the Startup and StandbyTransformers or set a time limit for
essentialpower
direction. It assumesonly ihat if only one of the two transformersis available,
considered
will be transferred to it in a timely manner. The Startup Transformer is therefore
available in such caseswhen unloadedbut energized'
busseson which
It is also noted that transforrners1xR7 and 1XR8 supply offsite power to the
and 18R92)'
the instrument air compressorsare located. (1XR9A and 1XR9B to lBR9l
these transformers
Instrument Air is considereda "medium" risk PSA System. Performanceof
will be trended with the Instrument Air System.
Performance Criteria:
Systemwill be
For the pu{posesof 10 C.F.R. $ 50.65 monitoring, the Offsite Power Trended
as defined by the
monitorid up to the switchyard inter-tie with the Offsite distribution system,
boundaries
system
item boundaries. Loss of power availability due to problems beyond the
further analysis
should not initially be disclunted with respect to the Performance Criteria, but
may indicate such problems were not IES Nuclear GenerationDivision MPFFs.
Given the above,the following critical functions will be monitored:
1.
2.
Availability of electric power from at least two Offsite sourcesat the low voltage
J
terminals of the Startui Transformer at all times' (Generally, breaker K and
unloaded
operability and Startup transformer operability.) An energized but
Startup Transformeris still consideredavailable'
Availability of electric power from an Offsite power source at the low voltage
terminals of the StandbyTransformer at all times'
Original SheetNo. 96
3.
4.
of the Auxiliary
Availability of electric power at the low voltage terminals
be generator or offsite
Transformer when the generator is online. (source can
Power)
busses(1A3 and
MPFF'swhich effect the offsite power supply for the essential
1A4)
a.
b.
c.
d.
5.
busseslAl and
MPFF's,in total, which effect the power supply for non-essential
lA2.
a.
b.
6.
MPFF's causingloss of the StartupTransformer
MPFF's causingloss of the StandbyTransformer
the
MPFF's causing 10ss of the fast transfer feature between
Startup and StandbyTransformers'
the
MPFF's causing loss of the slow transfer feature between
Startup and StandbyTransformers'
from the
MPFF's causing 10ssof the make-before-breaktransfer
Auxiliary Transformer to the StartupTransformer'
from the
MPFF's causing loss of the break-before-maketransfer
Auxiliary Transformer to the StartupTransformer'
components
MpFFs, where failure of the switchyard breakersor other switchyard
with offsite
Transformer
in scope would result in inability to supply the Startup
power.
T.MPFFswithintheDAECswitchyardoritsonsitecontrols,which,afterany
loss of an offsite
prompt operations or automatic responseto the event, result in
power source.
8.
as a reliable
MPFFs of breakers M, J, K, D and F leaving breaker unavailable
to open or close'
power source either by thl bieaker opening or closing, or failing
via inability to
or
So,
when conditions dictate it should automatically do
applicable, or from
successfullyoperatethe breaker from the Control Room when
part of the breaker
the switchyard control house if Control Room operation is not
design.
of breakermaintenanceand
Items l,2,3,and 6 canbe adequatelymonitoredvia periodic checks
4 a) and b), and 7 and 8 can be
transformer maintenanceand well as frequent op"ruiiott. Items
LOOP-LOCA test' Items 4 c)'
tracked via the corrective action system. item + A; is testedin the
checks. Plant Level indicators
5 a), 5 b) are not routinely tested other than individual instrument
will also be affectedby the performance of offsite Power.
surveillance and a percentage
Estimated (versusknown) past unavailable hours, basedon a failed
Performancecriteria'
of the testing interval Q.e."Tl2"), will not be counted for the unavailability
Original SheetNo. 97
Current Monitoring
Criteria:
As noted, Offsite
Technical SpecificationSection3.8 govems the Offsite Power requirements.
capability
power problems can effect Plant Level indicators such as scram rate and unplanned
loss factor.
Performance Criteria Development:
pu{poses,all
Offsite power is considereda significant system in the PSA. For comparison
A value for
systems were initially benchmutt"a againsi the Emergency Diesel Generators'
selected
unavailability of Z.5o/ofor the EDG's is-an acceptedindustry value. The unavailability
on
have
can
for Offsite power are in line with this value, given the effect Offsite Power
during initial
parameters plant wide. pSA significance and success criteria were reviewed
developmentof the Offsite Power performancecriteria'
Failures will be
System and Component availability and Maintenance Preventable Function
in accordance
monitored in accordancewith the corrective action program, and in Somecases
with the DAEC surveillancetest programs and Technical Specifications.
For Switchyard Breakers:
kV West
There are2 offsite power feedsto the 161 kV East Bus and 2 to ttre 161
power feeds
Bus. Thesebuses are normally interconnected. There are also 2 345kV offsite
breakersD and
which passthrough the T1 autotransformerand link to the East and West Bus via
via Breakers J and
K. The Startup Transformer is connectedto the East and West 161 kV buses
both are closed)'
(Normally,
K. Either J or K must be closed to supply the StartupTransformer.
of either
Breaker failure is currently tracedby ihe 15 breaker criteria above, and unavailability
Transformer
Standby
The
breaker is hacked via the 3tuttrp Transformer unavailability criteria.
the Tl
is connectedto the 345 kV offsite lines via the M breaker and its connectionto
eastand west
kV
161
the
and
transformer (independentof the Tl connectionbetween 345kV
connectedto
buses). The Aux Transformer, which can feed the non-essentialbusses,is directly
bussesallow
the Generator(no breaker in between). 4160 kV breakers at the non-essential
In rare cases'
power to be received either from the Aux Transformer or the Startup Transformer.
to the
during shutdown periods, offsite power may be "back-fed through the Aux Transformer
plant
to
the
power
non-essentialbuses.All of the switchyard breakersinvolved in feeding offsite
run time'
are kept closed wheneverpossible. Iiis reasonableto assumean almost-continuous
is
If Breaker M is open, the StandbyTransformer is de-energized. Failure of M
via
tracked
is
time
currently tracked by the 0 loss oiu"""r, to offsite power, and unavailability
to supply the
thezo/oStandbyunavailability criteria. Either Breaker J or K must be available
above, and
Startup Transformer. Thesebreaker failures are tracked by the 15 breaker criteria
unavailability
,rrruuuilubility of either breaker (East and wes bus feeds)is tracked via the Startup
independent
two,
into
up
criteria. If there is a grid disturbance,the switchyardmay break
F and D. (The
East^Vest Bus 161 KV and 345 KV islandsby the automatic opening of breakers
Original SheetNo' 98
K, and the 345 KV island feeds the
161KV island feeds the StartupTransformer via J and
be seenthat Breaker M is the most
StandbyTransformer via M). From the above, it can
StandbyTransformer' M is followed in
important breaker, as its single failure will disable the
161 KV offsite
K providing stuttop Transfolmer accessto four
importanceby breakersJ an-<l
feeds' if
offsite
KV
the 161 KV and 345
sourcesin total, and then F and D, which"s"purui"
sourcesto standby Transformer via the M
necessary. Due to their direct feed of the two offsite
higher riskthan breakersA' B' C, G' H'
breaker. BreakersR and S and T would have somewhat
offsite iorrr."r, but a single failure of any of
I and AB, which provide accessto the four 161 KV
the Startupor standby-transformer' A
thesebreakerscannot result in loss of offsite power to
offsite power switchyard breakersis
discussionof the setpointschosenfor criteria monitoring
NG-03-0838'
containedin the December2,2003 Expert PanelMinutes,
of a component within the offsite
Note: De-energization of a transformer due to malfunction
is considered a transformer "loss"'
Trended system boundaries (as previously defin-ed)
Failures to count toward any
Lossesmust be due to Maintenance PreventableFunctional
of the MPFF criteria listed for Offsite power'
10 C.F.R. S 50.65 Performance Criteria
year rolling average,calculated as per year
Note: A1l standardsbelow are measuredon a three
values.
value. The criteria are listed as the highest acceptable
of
<2%outavailability at low voltage terminals of the StartupTransformer
(via the J and K breakers)'
two Offsite sources
via Breaker J +
Hours Offsite Power Available from the StartupTransformer
via Breaker K
Hours Offsite Power Available from the Startup Transformer
(2) Total hours
two offsite power sources for seven days
Note: This is equivalent to loss of accessto each of
unavailability only' a complete
per year (average). It also represents,given unplanned
for 3'5 hours per year'
loss of accesstJ offsite po*"i (J and Klreakers simultaneously)
available'
An energizedbut unloaded transformer is still considered
for an Offsite power
<2(ounavailability at low voltage terminals of the StandbyTransformer
source.
Auto Transformer)
Hours Access to EnergizedTransform erTl (3451161
Total hours
power for sevendays per year (average)'
Note: This is equivalentto loss of accessto offsite
Original SheetNo. 99
as:
< 0.34MPFFS of 1A3/1A4 Power,where the value is computed
Transformer + # Loss of Fast
# Loss of StartuP Transformer t # Loss of StandbY
Slow Transfer Function(StartuPto
Transfer Function (StartuP to Standby) + # Loss of
StandbY)
Low Voltage terminals during
<2younavailabilitytopowerfromAuxiliaryTransformerto
plant oPerationonline
Hours Auxiliary Transformer Available with Generator
Hours GeneratorOn-line
<0.67MPFFsof1A1/lA2Power,wherethisiscomputedas:
transferof 1A1/1A2 to Startup
# Loss of Auxiliary Transformer * #Loss of Make-before-break
An Auxiliary Transformerloss
r # Loss of break-before-maketransferof 1A1/1A2 to Startup'
or thelransformer is being backfed'
w*l count againstthe criteria whether the unit is on-rine
where this is
0 MpFFs of switchyard offsite Power to the startup Transformer,
defined as:
components in scope which, in total,
Failure of the switchYard breakers or other switchyard
with power from an offsite source'
would result in inabilitY to supply the StartupTransformer
a MPFF occurring within the
< 0.67 unplanned events, per year, three year average, due to
any prompt operations or automatic
DAEC switchyard or its onsite controls, when, aftei
(rhatis, the number of combined 161 KV
responseto the event, an offsite powe*o.rr"" is lost.
(in total), and 345 KV offsite power
offsite poweruorrr"", feeding the East and West Busses
(Loss of the Tr itself is equivalent
sourcesfeeding the T1 autotransformer,is reducedby one.)
to loss of two offsite sources.)
by DAEC Operations or the Load
Note: "Prompt Operations response" means action taken
reea to DAEC to provide a restored
Dispatcher shortly after the loss of an offsite power
breakersor control logic'
pathway for the offsite power source to DAEC by manipulating
past the initial 3vent' Closure and
Such a responss extenis no further than one hour
puth*uy restoration is not counted as
subsequentunplanned opening of breakers during
number of offsite powe-rfeeds is
an additional event during trris perioa (unless ihl
samebreaker that initiated the event
reduced even further at the end oi the period). The
the pathway for offsite power'
can ultimat"f' f" credited at the end of period as providing
previous 48 hours unless it was
provided ttris breater did not initiate a similar event in the
automatic response to the event is a
also repaired in the interim to prevent reclrrence. An
line problems'
breaker *piarv opening and cl,osingin responseto transient
OrieinalsheetNo.100
in total to the East and
(In other words, there are normally four 161 KV offsite feeds
switchyard breakersA' B'
west Busses,and two 345 KV feeds via T1 autotransformer.
theseSourcesto reach one of
C, AB, G, H, I, R, S and T provide multiple pathwaysfor
the preventive maintenance
the busses(and this is taken into accouni when developing
to run to failure)' A feed to
schedules,which may allow for some parts of the brealiers
fails open, but another breaker
either east or west bus is acceptable. if a single breaker
or a breaker is closed to restore
maintains a pathway from the orttlt" source to ttre plant'
event is not counted againstthe
the pathway as a prompt responseto the event, then the
fact that regaining the pathway
above criteria. The Note for the criteria addressesthe
occur without additional
within the reasonabletime frame of one hour may not always
which began the event' or
breaker trips, either when attempting to reclose the breaker
The note also ensuresthe criteria will
when closing a new breaker into tn! circuit.
as the pathway even though
captureprobiems with a breaker which continues to be used
it is frequently tripping and having to be reclosed')
D and F' where the
< 1 MPFF, per year) three year average,for the total of breakers M, J, K,
as a reliable source of power
failure leaves, or would have |eft, the breaker unavailable
failing to open or close' when
transmission, either by the breaker opening or closing, or
to successfully operate the
conditions dictate it should automaticaiy do-so, or via the inability
control house (when in
breaker from the Control Room when applicable, or from the switchyard
manual) if Control Room operation is not part of the breaker design'
a "Repetitive MPFIj
Note: For this goup of breakers, an event would be considered
a breaker experiencesa MP.FF
warranting a review for a 50.65(a)(1) RED declaration if
failure of any similar
which is due to the samecauseas'anothermaintenance-preventable
for this criteria) within the
breaker in the DAEC switchyard (not just the five monitored
implement corrective actions
Iast two V"urr, prouided thai there was sufficient time to
2 Repetitive MPFF guidance
following the hist failure. See the Module 4, Attachment
for more details and examPles'
OE Monitoring
Lessons Learned:
and the NPRDS databasewere
The INPO keyword index of Industry operating Experience
System performance during
checked for information relevant to Oifsite Fo*o Trended
as part of additional
preparation of Revision 0 of this document and were also considered
adequately detect
will
system
this
revisions. The monitoring and Performance criteria for
failures that have occurred'
Effect of Revisions:
Original SheetNo' 101
equipment' updated Expert Panel
Rev. 1: Expandedboundariesto incorporate more switchyard
to reflect need for two sources'
and pSA notes. Cturin"a equation for Startup Transformer
of current and revised data indicates
Added a criteria for switchyard breaker failures. A review
2002
statusis needed' Rev 2: completed cycle 18
'bfu.tged
no changein t0 c.F.R. g 50.65(aXr/(a)iz)
switchyard breaker monitoring to MPFF and
System Engineer review per Modul" S.
at
failure to reclose, and when transformers unavailable'
CMF per Expert Panel, *d
hours
"lu.ifr"d
references,and added estimated
requestof system engineer. updated Tech Spec and other
is still available and aux
(Tl2) slatemenr. 6larified ihat unloaded Start'p Transformer
3 clarified scope to be everything
transformer availability is for generator online times. Rev
monitoring to capture as MPFFs the
within owner-controlled area, changed switchyard breaker
or loss of one of five key breakers'
loss of individual offsite power sourcesinto the switchyard
Rev 3: changed
power rt9*
Removed ability to supply Aux Transformer with offsite
"ttlta'
and islands' and focus on key breakers'
switchyard breaker monitoring to better capture ring bus
Rev 4: Clarifred loss of Tl :2 offsite sources'
References:
Rule Prioritization of
Erin Report No. CI24g3ll-1798, Rev 2, (DAEC Maintenance
Systems,Strucfuresand ComPonents)
DAEC TechnicalSpecifications3'8/4'8
SystemDescriPtion304
U F S A R S e c3 . 1( G D C l 7 ) , 8 . 1 ,8 ' 2 , 8 ' 3
NSOA
P&ID M-143
BECH E-I
and Performancecriteria
Erin Report No. C1249 606-2843-1205g6,on-line Maintenance
Assessment,12196
NG-02-1081,MR Expert PanelMeeting,November,2002
NG-03-0686,MR Expert PanelMeeting, August, 2003-- NG-03-0838,MR Expert PanelMeeting, December,2003
cAP 027725
orH028932
OriginalsheetNo. 102
Revision9
SD-3040
AttachmentE-1: DAEC Switchyard,from SystemDescription
SeelatestSD-304for thelatestdrawing'
CEII Material
Original SheetNo' 103
APPendix F
TO GIA
Billings
Addressesfor Delivery of Notices and
Notices:
Transmission Provider:
Operator' Inc'
Midwest IndependentTransmissionSystem
Planning
Attn: Senio, Munug"', TransmissionAccess
P.O.Box 4202
Carmel, IN 46082-4202
:
fo r overnight deliveri es
720 CitY Center Drive
Carmel,IN 46032
Transmission Owner:
Executive Director
ITC Midwest LLC
6750 ChavenelleDrive
Dubuque, lowa 52002
Phone: 563.585'3540
563.585'3654
Fax:
With a copy to:
General Counsel Utility Operations
ITC Midwest LLC
27175EnergYWaY
Novi, l|;4.l48377
Fax: 248'946.3352
lnterconnection Customer:
FPL EnergYDuane Arnold LLC
700 UniverseBlvd'
Juno Beach' FL 33408
Attention: John W' Ketchum
Phone: 561-691-7151
Fax 561-304-5161
With a coPYto:
Original SheetNo. 104
NextEra EnergYResources,LLC
700 UniverseBlvd'
JunoBeach,FL 33408
Attention: Mitchell S' Ross
Phone 561-691-1126
Facsimile561-304-5161
Billings and PaYments:
Executive Director
ITC Midwest LLC
6750 ChavenelleDrive
Dubuque, lowa 52002
Phone: 563'585'3650
Fax: 563'585'3654
With a coPYto:
General CounselUtility Operations
ITC Midwest LLC
27175EnergYWaY
Novi, l|y''L48377
Fax:248'946.3352
InterconnectionCustomer:
NextEra EnergYResources,LLC
700 UniverseBlvd'
Juno Beach'FL 33408
Attention: Richard Levin
or email):
Alternative Forms of Delivery of Notices (telephone,facsimile
TransmissionProvider:
Inc'
Midwest IndependentTransmission SystemOperator'
Planning
Attn: Senio. Murrug"t, TransmissionAccess
P.O.Box 4202
Carmel, IN 46082-4202
for overnight deliveries"
720 CitY Center Drive
Carmel,IN 46032
TransmissionOwner:
Original SheetNo.105
Executive Director
ITC Midwest LLC
6750 ChavenelleDrive
Dubuque,Iowa 52002
Phone: 563.585'3650
Fax: 563.585-3654
Email address- DCollins@ITCtransco'com
Interconnection Customer:
NextEra EnergYResources,LLC
Charles Schultz - Managing Attomey
Charles-Schultz@nexteraenergy' com
(s6r) 304-s220
MiscellaneousInformation
TransmissionOwner
DUNS# 80-832-2239
InterconnectionCustomer
DUNS#0s-900-6937
Original SheetNo' 106
Appendix G
TO GIA
Commercial OPeration Date
Transmission Provider' Transmission
This Appendix G is a part of this GIA between
Owner and Interconnection Customer'
[Datel
Inc'
Midwest IndependentTransmission SystemOperator'
Attn: Senior Manager, TransmissionAccessPlanning
P.O.Box 4202
Carmel, IN 46082-4202
for overnightdeliveries:
720 CitY Center Drive
Carmel,IN 46032
Re:
Large GeneratingFacilitY
Dear
This letter
rrial operation of -'
on [Date] [Interconnection customer] has completed
%oof MW
operationof
confirms that [Interconnection Customer] "o-*"rr""diommercial
of the Mw rating
plus one day]' -%
rating at the GeneratingFacility' effective as of fDate
/oof the MW
(Provrrlecustomer's name) and-with PPA of 1 year or longer with
(Provide Network customer's name)'
of --rating which is a designatednetwork r"**""
Original SheetNo. 107
APPendix H
TO GIA
SwitchYard OPeration and Access
1.
Switchyard Access
l.lThelnterconnectionCustomershallhaveexclusiveauthority'consistentwiththe
and commitments' to exercise
NRC Operating License and NRC Requirements
other property in the vicinity of
completecontrol over acces, toitttt*itchyard,
Exclusion Area' including the
the switchyard, and the Generating facitity
authoritytoconductinteractionswithlawenforcementagencies'
owner shall maintain
The Interconnection customer and Transmission
1.2
or to allow
gates locked and closed except when-attended
switchyard prri*"*
be controlled in accordance with
ingress or egress. switchyard access shall
InterconnectibnCustomer's written procedures'
for the performance of duties or
Authorized personnel entering the switchyard
1.3
Facility procedures'
activities will do so in accordancewith Generating
7
SwitchYard OPeration
2.1
(in accordancewith Good
Generating Facility persorurel will make inspections
control building, and transmission
Utility Practice) oi tttt switchyard, switchyard
is responsibleto carrY out
linefacilitiesforwhichthelnterconnectionCustomer
the following activities:
a)
b)
c)
make observationsof equiPment'
parameters'
obtain and log readingsof appropriateequipment
the Transmission owner'
conduct other routine activities at the request of
and
2.2
d)providetheTransmissionownerwithappropriatereportsastothe
findings of these activities'
accordancewith Good Utility
The Transmission Owner will make inspections-(in
building, and transmission line
Practice) of the switchyard, ,*it"hyurd control
is responsible to carry out the
facilities for which the Transmission owner
following activities:
a)
b)
make observationsof equiPment'
and
obtain log readings of equipmentparameters'
c)providethelnterconnectionCustomerswithappropriatereportsastothe
findings of these activities'
2.3SubjecttotheTransmissionProvider,sTariff,thelnterconnectionCustomerand
switchyard as follows:
Transmissionowner will operateequipmentin the
Original SheetNo' 108
a)
b)
c)
d)
e)
Owner will coordinatethe
the InterconnectionCustomer and Transmission
transmissionequipment
operation of all 34.5KV, 161KV, and 345KV
(e'g.,breakers,disconn""t',t'*'fo'*er'relaying'etc')intheswitchyard'
operator of the Station
The lntercoruaectioncustomer will be the exclusive
(1I3)' Standby (1X4)' Low Level
Main (1X1), Auxiliary (riZ), Startup
tiansformers (T4), associated output
Radwaste (T3), and
"orrrt*"tion
side distribution equipment
breakers,and disconnectswitches and the load
being suppliedby thesetransformers'
(or provide for operation
The Transmission owner will normally operate
and associatedequipment'
of) all 161KV and 345KV switchyard breakers
n 9'4'3 (a) and (b) above'
including disconnects,other than as noted
Facility personnelwrJl operate
,."*ot"for locally. Authorized Generating
the
equipment in trre switchyard locally at
ury ,r"i breakers or, ott
",
TransmissionOwner's request'
customer will inform
The Transmission owner and the Interconnection
all switchyard breakers and
each other in advance of ift" operation of
disconnectsto remove equipment from service'
maintenance support of the
Interconnection Customer w]ll- Provide other
switchyardattherequestoftheTransmissionowner.Anyincremental
the Transmission owner's
cost to the Interconnectioncustomer shall be at
expense.
f ) T h e T r a n s m i s s i o n o w n e r s h a l l o p e r a t e \ h 2 a 2 M V a r c a p a c i t o r b5631'
ankowned
switch
disconnect
at
installed
and
Customer
by Interconnection
3.
Coordination of Switchyard Loading
the Transmission owner
3 . 1 consistent with NRc Requirements and commitments,activities that may directly
all
will coordinate with the Interconnection customer
a minimum, the Generating
At
Facility.
affect power supply io the Generating
te informed by the Transmission
Facility Control Room Shift Manager will
cfew during the planning stage of
Owner's system dispatchers or maintenance
planned in advance' and detailed in
these activities. ectivities which cannot be
coordinated with the Generating
the conduct of planned activities, shall be
activities include but are not limited
Facility control Room Shift Manager. These
to:
line terminating in the
removal from service of any transmission
a)
switchYard;
supply to the plant (i'e''
breaker switching which can affect power
b)
switching of lines identified in (a) above); and
c)maintenanceactivitiesthatcanaffectpowersupplytotheplant.
4.
Review and Approval of Changes or Tests
Custorner's review and
4.1 The Transmission Owner will obtain lnterconnection
test or changesin the conduct of
approval of procedure changes,design changes,
Original SheetNo- 109
yith.the \1:
otheractivitieswhichmightaffectcompliance
-Ott:1ft-t-:i"",""T:
andassociated
il"lving theswitchyard
tothe
power
orrsite supplv
adect
",-^-;.__-^1^ ^L^-_6o
rch
"oura
such
ptioi to implementing
ffi1-ffi'"iffi;ffi: ffi;;;il#
lltres 4rrLr vYsryu'*^"
il:jffiffiil"#;;il;;;ilt"h
ffansmlssl0ll
Facility
Generating
;:l"i:ili:
##"1 #;;;s,;i;;;;;,
-"^^lrr
-^--^-^i--
fn
fhe
o..nh
thanses^o1-::T*:1:t*t"n:1,"procedures
operatins
to
telts,orchanges
.:.- -
n^^:1:+.'
Facility'
thaicould alffectgria staUitityat the Generating
andrequirements
4.2
proposed-changesand tests in
Interconnection customer will review these
and NRC Requirements and
accordance with the NRC Operating Licenseif required'
commitments and *ill obruitt prior NRC approval
Procedures; New Requirements
respond to the critical need to
Transmission owner recognizes that it must
5.1
an emergencyand provide assistance
provide po*", to the GeneratingFacility in
(Loss of off-site Power
'Th" emergencies
to the plant in responding to offsite power
T'*"riission Owner shall ensure that
Supply Service, Station Blacko^ut)L
to make their maintenance
procedures are promulgated, and iraining conducted,
supportneeds'
and dispatch p.,,on""t"u*are of such emergency
(typically
or indust?
In the event of new regulatory requirements
-g:"*p:-"lces
S.Z
groups), the Transmission owner
coordinated by INpo or other utility standards
to work with the Interconnection
will make commercially ReasonableEfforts
that if the
th" new requirements;.provided, however,
customer t;-;;";"rri
Generating
the
practice pertains to
regulatory requirement or rndrrst.y iooa
lnterconnection Facilities'
Facility anditr the Interconnection customer
for all of the costs of implementing
Interconnection custo*"r rhutiu" r"rfo.triule
provided further, however, that
the new requirement or practicel and
the
for the
Interconnection Customer shall;;;;p."sibll
3osl,,of 1*4:l*tingOwner's
it pertains to the Transmission
new requirement or practice to the extent
System, or Distribution System if the
System Protection Facilities, Transmission
than those requirements or practices
requirement or practice is more extensive
to a fossil-fueled power station using
customarily applied by f'ransmirriott O*tter
Good UtilitY Practice'
5.
6.
Training
6.1
(on a schedulejointly agreedto by
Interconnection customer will provide training
il:l;;Hffi
|
, ^l
f^-
-^.-'ar
o1
fha
#;;;personner.toelnrain!r,1:tl":t^T:f:::":::,il,l::
:iiilliiffiffi ";;;;;"Jl;*""nnectionbustomertorransmissionowner's
associated
requirements
tli" regulatory
E:ffiffir ;;iff;;;;
ff*'ffi*d;;i"g
6.2
i*".e"*r"*,
r
rr-1--,^--l
^^^"'-i+-r
onrl
e(la:eqs
access
Facility power zupply,switchyardsecurityand
controls, and associatedprocedures'
and maintenance
The Transmission owner shall make appropriatg.dispatcher above.
the trainingdiscussed in Section 6.1
i"rrorrrra available to receive
Original SheetNo. 110
APPendix I
TO GIA
and
NRC Maintenance Rule and NRC Requirements
CommitmentsI Decommissioning
1.
NRCMaintenanceRuleandNRCRequirementsandCommitments
Authority'
1 . 1 Interconnection Customeros Obligations and
obligation to-comply with
1.1.1 In furtheranceof InterconnectionCustomer's
theNRCMaintenanceRuleandNRCRequirementsandCommitments,
customer has the
Transmission oWner agrees that Interconnection
authority,co,,t,olandobl-igationto:(a)reviel.andmodiff,asappropriate,
structures, systems' and
Transmission owner's identification of all
componentscoveredundertheNRCMaintenanceRule,regardlessof
ownership,andrequireTransmissionownertomodiff,asappropriut:,-.th"
so as to meet NRC
scope of such structures, systems' and components
requirements;(b)incooperationwithTransmissionowneran
din
and approve availability and
accordancewith NRC guidance,to establish
goals for all such
reliability p"rforr.rurr"J criteria and improvement
structures,systems,andcomponents,regardlessofownership,topermit
th" NRC Maintenance Rule;
Interconnection customer to comply *ith
and(c)incooperationwithTransmissionOwnerandinaccordancewith
maintenance, inspections'
NRC guidance, to approve all improvements,monitoring,operationalprocedur""o'anyotheractivityaffectingsuch
structures,systems,andcomponents,r"gutdl"t*ofownership,topermit
NRC MaintenanceRule and
Interconnection customer to comply with the
NRC Requirementsand Commitments'
with Interconnection customer to
1.1.2 Transmission owner shall cooperate
with the NRC
facilitate Interconnection customer's compliance
and Commitments, as they
Maintenance Rule, and NRC Requirements
applytothestructures,systems'andcomponentsoftheTransmission
the Transmission system'
owner,s Interconnection Facilities or
owner for the
Interconnection customer shalt reimburse Transmission
to facilitate Interconnection
incremental costs to Transmission owner
Customer,scompliancewiththeNRCMaintenanceRule,andtheNRC
RequirementsandCommitments,beyondthosecoststhatotherwiseare
customaryandreasonableinrelationtoTransmissionowner,s
a fossil-fueled generation
implementation of Good Utility Practice for
facilitY.
owner incurs as a result
1.1.3 Any incremental cOStSOr expensesTransmission
ofalnterconnectionCustomerrequesttoTransmissionOwnerfor
by Interconnection
additional or different action, arising ho- ro-pliance
to, of any change in
customer *itt urry amendment oi modification
interpretationof,theNRCMaintenanceRuleandNRCRequirementsand
Original SheetNo' 111
shall be borne by Interconnection
commitments after the Effective Date,
Customer.
ScheduleofComponents.AppendixEtothisAgreementse
tsforththe
Date, are necessaryto fulfill those
substationcomponJntsthat, u. of tit" Effective
Rule, together with the schedule' to
functions covered UVift" ilRC Vtuintenance
maintenance,inspection and testing of
be provided as of the Effective Date, for
will be maintained' inspected
such components. All other substation-"olnpott"nts
Owner's standard procedures for
and tested in accordance with Transmission
In the event the Parties agreethat
substationmaintenance,inspection and testing.
g sUJuldhave been included in Appendix
a componentnot identified in Appendix
components to
E, the parties *"y, tt their mutual agreement,-add_substation
with. the NRC Maintenance Rule,
In order to .offi
Appendix E.
componentsto Appendix E as
Interconnection Customer may add new substation
change schedules for maintenance'
appendices to appt"Jil E,- and also may
subjecito Interconnection customer's
inspection and testing of such "o*porr"nts,
with Article 10'6' 1'3 '
payment of additional costsor expensesin-accordance
become aware of any failure of any
1 . 3 Notice. To the extent Transmission owner
E, Transmission owner shall
substation component identified n npfe"dix.
Customer'
protid" immediate notice thereof to Interconnection
1.2
1.4
1.5
Analysis.AsrequiredbytheNRCMaintenanceRule,InterconnectionCustomer
Owner's reasonable cooperation'
may, at its discrJion una *itt Transmission
when maintenance is performed on
conduct risk assessments as requrred
e q u i p m e n t w i t h i n t h e s c o p e o f t h e N R C M a i n t e n a n c e R u lAppendix
e a n d c o nE'
d uand
ctan
identified in
analysis of a failure of any substation "o*po""t't
Transmission
r"uairrg to the fuilrrr" oi *y such component.
any personn"r
"oo,
Customer and promptly' upon
Owner will cooperate .niith ttot"rconnection
Interconnection customer with all
Interconnection customer's request, provide
control and, consistent with Good
information under Transmissior, Onirr"t's
customer to: (a) perform such risk
Utility Practice, necessaryfor Interconnection
the failure was a functional failure
assessmenru, ,"qrri."a; 1L; a"te.minswhether
(c) determinewhether the failure' if
of equipment or ihe ,."r.rit'of p"rsonnel "oor;
preventable; anf (d) conduct.root cause
a functional failure, was maintenance
Customerdeems appropriate' At the
analysesof those failures as Interconn""tio'
Interconnectioncustomer's expense'
request of Interconnection customer, and at
performanc" :f u root cause analysis for
Transmission owner shall assist i" itt"
the investigation
failure iae*inea in Appendix E, and
any substatior,
such component'
"orrrfonent
which may have led to the failure of any
of any p.r.on r"t
"rior
as InterconnectionCustomer deemsnecessary'
T e s t i n g . A s n e c e s s a r y , i n a c c o r d a n c e w i t h G o o d U t i l i t ywill
P r a carange
tice,ora
t
for
Transmission
,"qrr"ri,
Customer's
.Owner
Interconnection
identified,in Appendix E' subject to
independenttesting of any failed component
of additional costs or expenses in
Interconnection Customer's puy*"it
accordancewith Articl e 10'6'l'2 and 10'6'1'3'
Original SheetNo' 112
1.6
1.7
2.
shall analyze data
Performance Improvement Plan. Interconnection Customer
of a substationcomponent
supplied by Transmission Owner conceming a failure
error which may have led
identified in Appendix E, and investigate any personnel
Transmission Owner if a
to the failure of any such compon#, ana sndt notify
with the NRC
performance improvement plan is required in accordance
Transmission Owner will
Maintenance Rule. Interconnection Customer and
plan, the cost of which
cooperateto develop and implement any such performance
shall be bome by InterconnectionCustomer'
Owner shall provide
Records. For the term of this Agreement,Transmission
records concerning all
Interconnection Customer with "J-pl"t" and accurate
preventative and corrective maintenanceactivities performed.by'Transmission
identified in Appendix
owner on all Transmission owner substationcomponents
E.
Decommissioning.
2.1
2.2
the Generating
Interconnection Customer, at its own expensg'will decommission
and the Asset
Facility in accordancewith NRC Requiiements and Commitments
Sale Agreement.
preserv" *q. maintain the
In furtherance of the Parties' mutual objective to
Facilities and the
reliability of the Transmission owner's Interconnection
Transmission Owner agtee
Transmission System, Interconnection Customer and
in a manner so as
to coordinate the planning and scheduling of Decommissioning
effect on, the Transmission
to maintain the ,"tiuUitlty of, and to minimize the
System'
owner's InterconnectionFacilities and the Transmission
OriginalSheetNo. 113
Appendix J
To GIA
Generating FacilitY CaPacitY
(i)
For any given month, the GeneratingFacility Capacity shall be equal to the product of
630.5MWer and (ii) the applicableadjustmentfactor set forth in the tablebelow.
Month
January
February
March
April
Mav
June
July
August
September
October
November
December
Adiustment Factqr
1.015
t.0r2
1.010
1.000
0.995
0.988
0.982
0.983
0.993
1.002
1.007
1.013
The Generating Facility Capacity of 630.5 MWe is illustrative provided, however, that
any such modification shall not increasethe total DAEC 630.5 MW Generating Facility
Capacity to more than 640 MW for purposes of the LGIA without the expressagreement
of the Transmission Provider, and provided further that any capacity above the
Interconnection Customer's share of that 64A MW level shall be entitled to Energy
Resourcestatusrather Network Resourcestatusunder the Tariff.