Section 100. Contents of incumbent electric utility filing, Part I

Part I of the filing required pursuant to 20VAC5-320-90 shall include the following (if such information is not available as of the date of the filing, the application shall contain a detailed explanation as to why such information is not available, the efforts under way to develop such information, and an estimate of the time within which it will be available):

1. Copies of each agreement entered into between the RTE and member transmission owner. Copies of each draft agreement proposed to be entered into by and among the RTE and any member transmission owner.

2. A description of the proposed business structure of the RTE (e.g., public service corporation, limited liability company). Copies of the RTE's articles of incorporation, articles of organizations, or similar documentation shall be provided in conjunction with this description.

3. A detailed description of the RTE's governance, including but not limited to, explanations of the selection process for the RTE's board of directors and officers, codes of conduct, transmission owner rights and voting conditions.

4. A detailed description of the specific planning, operational, maintenance, and other responsibilities that will be within the province of the RTE, and those that will remain within the province of the transmission owners. Such description should specify authorities and powers granted to the RTE. The list of responsibilities to be addressed shall include the following:

a. Construction of facilities;

b. Dispatch and redispatch of generation;

c. Maintenance of facilities;

d. Decision to order line loading relief;

e. Filing of initial tariffs at FERC;

f. Filing of changes to tariffs at FERC;

g. Acquisition of ownership or control of transmission facilities from transmission-owning members of the RTE;

h. Acquisition of ownership or control of transmission facilities from entities who are prospective members of the RTE;

i. Admission of new members;

j. Establishment of budget;

k. Hiring of staff leadership;

l. Planning activities for interconnecting new generating facilities;

m. Planning activities for transmission facilities controlled by the RTE;

n. Planning activities for transmission facilities not controlled by the RTE or distribution facilities to be interconnected with the RTE;

o. Open access transmission tariff (OATT) administration;

p. Transmission transaction scheduling;

q. Provision of energy imbalance services;

r. Procurement and provision of ancillary services;

s. Market monitoring activities;

t. Control area or security coordination responsibilities;

u. Calculation and posting of available transmission capacity;

v. Dissemination of reliability-related information and coordination with reliability councils or organizations; and

w. Coordination with generators and policies for interconnecting new generators.

5. A detailed description of (i) each type of transmission-related decision the transmission owner will continue to make after the transfer of the management and control of its transmission assets, or the responsibility to operate such assets to an RTE and (ii) the role, if any, that the RTE will play in the decision-making process.

6. A detailed description of the plans for hiring and training the employees of the RTE.

7. A description of the transmission rate or rates that will be collected by the RTE, including:

a. The type of rates to be charged (e.g., zonal rates, grid-wide rates);

b. Provisions for transitioning to a particular type of rate or for modifying existing rates;

c. A statement indicating whether there will be any rate pancaking for transactions within the RTE and, if so, the following information shall be furnished:

(1) A detailed description of how rate pancaking occurs, with realistic hypothetical examples;

(2) A detailed analysis of the economic effect of rate pancaking on representative types of transactions affecting customers in Virginia;

(3) A statement of how long rate pancaking will last;

(4) The rationale for permitting rate pancaking; and

(5) A discussion of any FERC precedent relevant to determining the lawfulness or appropriateness of such rate pancaking, including a description of all similarities and differences between the facts addressed in the FERC precedent and the facts in the RTE agreement at issue;

d. A statement indicating whether there is any charge, other than rate pancaking that is intended to recover, or has the effect of recovering, from the transmission customer, revenues that one or more transmission owners would no longer receive as a result of the elimination of pancaked rates, and, if so, the following information shall be furnished:

(1) A detailed description of how such charge operates, with realistic hypothetical examples;

(2) A detailed analysis of the economic effect of such charge on representative types of transactions affecting customers in Virginia;

(3) A statement of how long such charge will last;

(4) An explanation of the rationale for permitting the charge; and

(5) A discussion of any FERC precedent relevant to determining the lawfulness or appropriateness of such charge, including a description of all similarities and differences between the facts addressed in the FERC precedent and the facts in the RTE agreement at issue;

e. A schedule comparing and contrasting the RTE's expected transmission charges and resulting RTE revenues with embedded retail transmission charges for each of the utility's Virginia jurisdictional rate classes;

f. An explanation of any special or innovative transmission rates or charges;

g. An explanation of the expected transmission pricing provisions applicable to transmission transactions with other regional transmission organizations; and

h. An explanation of the transmission pricing applicable to wheel-in, wheel-out, drive-through, and drive-within transactions.

8. A description of any complaint and dispute resolution procedure.

9. A detailed description of the facilities that will be subject to the RTE's control and/or that will be transferred to the RTE. Such description shall specify (i) whether the basis for determining the facilities to be transferred is FERC's seven factor test set forth in FERC Order 8881 or some other method, (ii) how such test or method was applied, (iii) whether and how frequently such test will be reviewed and revisited, and (iv) who, as between the RTE and the owners, will require such review and any subsequent transfer made necessary by such review.

10. A detailed discussion of generation markets or hubs within the RTE and within one wheel of the RTE. Such discussion shall:

a. Compare and contrast historical and expected average prices in these markets with embedded generation charges for each of the utility's Virginia jurisdictional rate classes;

b. Describe how the proposed RTE will promote improved access to each of these markets; and

c. Describe the current and projected transmission capability between these markets and the utility.

11. If an application to form an RTE already has been submitted to FERC, the filing shall include:

a. A copy of the application to the FERC (including applications made under § 203 and §§ 205 or 206 of the Federal Power Act,2 and all amendments thereto); and

b. Any pleadings and orders issued in such FERC case;

12. If the FERC has approved or conditionally approved the RTE, describe any conditions or requirements imposed on the RTE and the RTE's plans for satisfying such conditions.

13. A detailed description of the RTE's experience in grid management. If the RTE is a new entity, describe the qualifications and/or personnel requirements for the principal RTE employees who will be engaged in the management and operation of transmission facilities controlled by the RTE.

14. A detailed explanation of why the particular RTE was selected reasonably available to the applicant. Such statements should include assessments of the financial and technical abilities of the proposed RTE as contrasted with such alternative RTEs. Such technical assessment shall identify the current and projected transmission capability between the RTE and the utility for each RTE alternative.

15. A detailed description of the role and composition of the RTE's stakeholder advisory board or boards.

1Promoting Wholesale Competition Through Open Access Non-discriminatory Transmission Services by Public Utilities and Recovery of Stranded Costs by Public Utilities and Transmitting Utilities, Order No. 888, 61 FR 21,540 (May 10, 1996), FERC Stats. & Regs. %5731,036 (1996) (Order No. 888), order on reh'g, Order No. 888-A, 62 FR 12,274 (March 14, 1997), FERC Stats. & Regs. %5731,048 (1997) (Order) No. 888-A), order on reh'g, Order No. 888-B, 81 FERC %5761,248 (1997), order on reh'g, Order No. 888-C, 82 FERC %5761,046 (1998), aff'd., Transmission Access Policy Study Group, et al. v. FERC, 2000 WL 762706 D.C. Cir. (June 30, 2000).

216 USC §§ 824b, 824d and 824e.

Historical Notes

Derived from Volume 16, Issue 24, eff. July 19, 2000.

Statutory Authority

§§ 12.1-13 and 56-579 of the Code of Virginia.