Common use of M2M Entitlement Topology Model and Impact Calculation Clause in Contracts

M2M Entitlement Topology Model and Impact Calculation. The M2M Entitlement calculation shall use both RTOs’ static topological models to determine the Non-Monitoring RTO’s mutually agreed upon share of a M2M Flowgate’s total capacity based on historic dispatch patterns. Both RTOs’ models must include the following items: a static transmission and generation model; generator, load, and PAR shift factors; generator output, load, and interchange schedules from 2009 through 2011 or any subsequent three year period mutually agreed to by the Parties; a PAR impact assumption that the PAR control is perfect for all PARs within the transmission models except the PARs at the Michigan-Ontario border; new or upgraded Transmission Facilities; and Transmission Facility retirements. Each Party shall calculate the GLDFs using a transmission model that contains a mutually agreed upon set of: (1) transmission lines that are modeled as in-service; (2) generators; and (3) loads. Using these GLDFs, generator output data from the three year period agreed to by the Parties, and load data from the three year period agreed to by the Parties, the Parties shall calculate each Party’s MW impact on each M2M Flowgate for each hour in the three year period agreed to by the Parties. Using these impacts, the Parties shall create a reference year consisting of four periods (“M2M Entitlement Periods”) for each M2M Flowgate. The M2M Entitlement Periods are as follows: M2M Entitlement Period 1: December, January, and February; M2M Entitlement Period 2: March, April, and May; M2M Entitlement Period 3: June, July, and August; and M2M Entitlement Period 4: September, October, and November. For each of the M2M Entitlement Periods listed above the Non-Monitoring RTO will calculate its M2M Entitlement on each M2M Flowgate for each hour of each day of a week that will serve as the representative week for that M2M Entitlement Period. The M2M Entitlement for each day/hour, for each M2M Flowgate will be calculated by averaging the Non-Monitoring RTO’s Market Flow on an M2M Flowgate for each particular day/hour of the week. The Non-Monitoring RTO shall use the Market Flow data for all of the like day/hours, that occurred in that day of the week and hour in the M2M Entitlement Period, in each year contained within the three year period agreed to by the Parties to calculate the Non-Monitoring RTO’s average Market Flow on each M2M Flowgate. When determining M2M settlements each Party will use the M2M Entitlement that corresponds to the hour of the week and to the M2M Entitlement Period for which the real-time Market Flow is being calculated. The Parties will use the M2M Entitlements that are calculated based on data from the 2009 through 2011 three year period for at least their first year of implementing the M2M coordination process.

M2M Entitlement Topology Model and Impact Calculation. The M2M Entitlement calculation shall use both RTOs’ static topological models to determine the Non-Monitoring RTO’s mutually agreed upon share of a M2M Redispatch Flowgate’s total capacity based on historic dispatch patterns. Both RTOs’ models must include the following items: a static transmission and generation model; generator, load, and PAR shift factors; generator output, load, and interchange schedules from 2009 through 2011 or any subsequent the most recently completed three year period mutually agreed to by the Partiescalendar years; a PAR impact assumption that the PAR control is perfect for all PARs within the transmission models except the PARs at the Michigan-Ontario border; new or upgraded Transmission Facilities; and Transmission Facility retirements. Each Party shall calculate the GLDFs using a transmission model that contains a mutually agreed upon set of: (1) transmission lines that are modeled as in-service; (2) generators; and (3) loads. Using these GLDFs, generator output data from the three year period agreed to by the Parties, and load data from the three year period agreed to by the Parties, the Parties shall calculate each Party’s MW impact on each M2M Redispatch Flowgate for each hour in the three year period agreed to by the Parties. Using these impacts, the Parties shall create a reference year consisting of four twelve periods (“M2M Entitlement Periods”) for each M2M Redispatch Flowgate. The M2M Entitlement Periods are as follows: M2M Entitlement Period 1: December, January, and February; M2M Entitlement Period 2: March, April, and MayFebruary; M2M Entitlement Period 3: June, July, and AugustMarch; and M2M Entitlement Period 4: April; M2M Entitlement Period 5: May; M2M Entitlement Period 6: June; M2M Entitlement Period 7: July; M2M Entitlement Period 8: August; M2M Entitlement Period 9: September, ; M2M Entitlement Period 10: October, and ; M2M Entitlement Period 11: November. ; M2M Entitlement Period 12: December; For each of the M2M Entitlement Periods listed above the Non-Monitoring RTO will calculate its M2M Entitlement on each M2M Redispatch Flowgate for each hour four groups of each day of a week that will serve as hours, the representative week for that grouping is described below. M2M Entitlement PeriodGroup 1: Hour beginning 0 through hour beginning 5; M2M Entitlement Group 2: Hour beginning 9 through hour beginning 14; M2M Entitlement Group 3: Hour beginning 15 through hour beginning 20 and; M2M Entitlement Group 4: Hour beginning 6 through hour beginning 8 and hour beginning 21 through hour beginning 23. The M2M Entitlement for each dayperiod/hourgroup, for each M2M Redispatch Flowgate will be calculated by averaging the Non-Monitoring RTO’s Market Flow on an M2M Redispatch Flowgate for each particular dayperiod/hour of the weekgroup. The Non-Monitoring RTO shall use the Market Flow data for all of the like dayperiod/hours, that occurred in that day of the week and hour in the M2M Entitlement Periodgroups, in each year contained within the three year period agreed to by the Parties to calculate the Non-Monitoring RTO’s average Market Flow on each M2M Redispatch Flowgate. When determining M2M settlements each Party The data within the three year period will use be weighted as follows: most recent year 20%, middle year 30%, and oldest year 50%. In addition, the M2M Entitlement values should never extend beyond a facility’s rating. If the calculation derives an entitlement that corresponds is above the facility’s rating the parties will cap the entitlement value to remain within the hour facility’s rating. If either of the week and below upgrade scenarios occur the Parties may mutually agree to adjust the M2M Entitlement Period calculation method to account for which the realimpacts of the upgrade(s): If the Non-time Market Flow is being calculated. The Parties will use Monitoring RTO upgrades the M2M Entitlements that are calculated based Monitoring RTO’s system resulting in a rating increase; or If the Non-Monitoring RTO’s market flow on data from the 2009 through 2011 three year period for at least their first year of implementing Monitoring RTO’s system decreases due to a Non-Monitoring RTO upgrade on the M2M coordination processNon-Monitoring RTO’s system.