Common use of Sharing Contract Path Capacity – All Phases Clause in Contracts

Sharing Contract Path Capacity – All Phases. The Parties have agreed to the following phased approach to the elimination of such contract path limits: (a) If the Parties have contract paths to the same entity, the combined contract path capacity will be made available for use by both Parties. This will not create new contract paths for either Party that did not previously exist. SPP will not be able to deal directly with companies with which it does not physically or contractually interconnect and the MIDWEST ISO will not be able to deal directly with companies with which it does not physically or contractually interconnect. (b) When the MIDWEST ISO and SPP commence operation of energy markets, the sharing of contract path capacity where the MIDWEST ISO and SPP have existing contract path capacity to the same entity will continue to exist. The MIDWEST ISO and SPP may need to resolve any coordination issues such that the combined contract capacity is not exceeded by the operation of the two markets. This phase will still not create new contract paths for the Parties. (c) When a Joint and Common Market exists between the MIDWEST ISO and SPP as is expected, the sharing of contract path capacity between the MIDWEST ISO and SPP will occur on a complete basis. All physical connections to the combined MIDWEST ISO and SPP RTOs will be available for use by the market. Whether the physical path connections are within the MIDWEST ISO or SPP will not affect a customer’s participation in the market. Only actual physical limitations will impact how the customer is able to use these connections to the market.

Sharing Contract Path Capacity – All Phases. The Parties have agreed to the following phased approach to the elimination of such contract path limits: (a) If the Parties have contract paths to the same entity, the combined contract path capacity will be made available for use by both Parties. This will not create new contract paths for either Party that did not previously exist. SPP will not be able to deal directly with companies with which it does not physically or contractually interconnect and the MIDWEST ISO will not be able to deal directly with companies with which it does not physically or contractually interconnect. (b) When the MIDWEST ISO and SPP commence operation of energy markets, the sharing of contract path capacity where the MIDWEST ISO and SPP have existing contract path capacity to the same entity will continue to exist. The MIDWEST ISO and SPP may need to resolve any coordination issues such that the combined contract capacity is not exceeded by the operation of the two markets. This phase will still not create new contract paths for the Parties. (c) When a Joint and Common Market exists between the MIDWEST ISO and SPP as is expected, the sharing of contract path capacity between the MIDWEST ISO and SPP will occur on a complete basis. All physical connections to the combined MIDWEST ISO and SPP RTOs will be available for use by the market. Whether the physical path connections are within the MIDWEST ISO or SPP will not affect a customer’s participation in the market. Only actual physical limitations will impact how the customer is able to use these connections to the market. Stakeholder comment: This may be in conflict with NERC Operating Policy 3 B section 5 which states: Maximum scheduled interchange. The maximum Net Interchange Schedule between two Control Areas shall not exceed the lesser of the following: Total capacity of facilities. The total capacity of both the owned and arranged-for transmission facilities in service between the two Control Areas, or…. MWG, ORWG, RTWG response: Staff will review with legal council to ensure that Tariff principles are not violated and may have to review with NERC to determine if a waiver would be needed.