Common use of Active and Inactive Zones Clause in Contracts

Active and Inactive Zones. 7.2.7.3.1 An Active Zone is one for which a workably-competitive Generation market exists on both sides of the relevant Inter-Zonal Interface for a substantial portion of the year so that Congestion Management can be effectively used to 7.2.7.3.2 The Congestion Management described in this Section 7.2, and the Usage Charges stemming from the application of these procedures, shall not apply to Inter-Zonal Interfaces with Inactive Zones. 7.2.7.3.3 For Inactive Zones, any costs associated with Congestion Management on the inactive Inter-Zonal Interface (for example, the above market costs associated with Generation "call" contracts) will be allocated to the Service Area of the Participating TOs who own the inactive Inter-Zonal Interface, as set forth in the TO Tariff and any Intra-Zonal Congestion Management costs within the Inactive Zone and the adjacent Zone will be combined and will be allocated as if the two Zones were a single Zone. 7.2.7.3.4 The initial inactive Inter-Zonal Interfaces are the interface between the San Francisco Zone and the remainder of the ISO Controlled Grid, and the interface between the Humboldt Zone and the remainder of the ISO Controlled Grid. The initial Inactive Zones are the San Francisco Zone and the Humboldt Zone. 7.2.7.3.5 The determination of whether a new Zone or an existing Inactive Zone should become an Active Zone and the determination of whether a workably-competitive Generation market exists for a substantial portion of the year, shall be made by the ISO Governing Board, using the same approval criteria as are used for

Active and Inactive Zones. 7.2.7.3.1 An Active Zone is one for which a workably-competitive Generation market exists on both sides of the relevant Inter-Zonal Interface for a substantial portion of the year so that Congestion Management can be effectively used to 7.2.7.3.2 The Congestion Management described in this Section 7.2, and the Usage Charges stemming from the application of these procedures, shall not apply to Inter-Inter- Zonal Interfaces with Inactive Zones. 7.2.7.3.3 For Inactive Zones, any costs associated with Congestion Management on the inactive Inter-Zonal Interface (for example, the above market costs associated with Generation "call" contracts) will be allocated to the Service Area of the Participating TOs who own the inactive Inter-Zonal Interface, as set forth in the TO Tariff and any Intra-Intra- Zonal Congestion Management costs within the Inactive Zone and the adjacent Zone will be combined and will be allocated as if the two Zones were a single Zone. 7.2.7.3.4 The initial inactive Inter-Zonal Interfaces are the interface between the San Francisco Zone and the remainder of the ISO Controlled Grid, and the interface between the Humboldt Zone and the remainder of the ISO Controlled Grid. The initial Inactive Zones are the San Francisco Zone and the Humboldt Zone. 7.2.7.3.5 The determination of whether a new Zone or an existing Inactive Zone should become an Active Zone and the determination of whether a workably-competitive Generation market exists for a substantial portion of the year, shall be made by the ISO Governing Board, using the same approval criteria as are used for