ALSTON&BIRD LLP The Atlantic Building 95 F Street, NW Washington, DC 24-144 22-756-33 Fax: 22-756-3333 August 1, 28 The Honorable Kimberly D. Bose Secretary Federal Energy Regulatory Commission 888 First Street, NE Washington, D.C. 2426 Re: California Independent System Operator Corporation Compliance Filing Docket No. EL8-52- Dear Secretary Bose: The California Independent System Operator Corporation ("CAISO") hereby submits an original and five copies of the instant filing in compliance with the Commission's "Order Granting in Part and Dismissing in Part Complaint and Accepting Revisions to Transmission Control Agreement," 124 FERC 61,4, issued on July 2, 28 ("July 2 Order"). Two additional copies of this filing are enclosed to be date-stamped and returned to our messenger. I. Background On April 1, 28, the CAISO submitted in the above-referenced proceeding a filing ("April 1 Filing") setting forth a complaint to modify the Transmission Control Agreement ("TCA"), under which the CAISO assumes Operational Control of the transmission facilities that constitute the ISO Controlled Grid. 1 In the July 2 Order, the Commission accepted all of the revisions to the TCA proposed in the April 1 Filing and directed the CAISO to submit a compliance filing within 3 days of the order including (1) revised TCA tariff sheets indicating an April 23, 28 effective date for the TCA amendments 1 Capitalized terms not otherwise defined herein have the meanings set forth in the Master Definitions Supplement, Appendix D to the TCA or the Master Definitions Supplement, Appendix A to the ISO Tariff, as applicable.
The Honorable Kimberly D. Bose August 1, 28 Page 2 and (2) a revised form of "TAC Rate" spreadsheet. 2 The CAISO submits the instant filing to comply with the directives in the July 2 Order. II. Revised "TAC Rate" Spreadsheet In response to intervenor concerns in this proceeding that the ISO Tariff does not include clear provisions regarding the treatment of the Transmission Revenue Requirement ("TRR") of a Non-Load-Serving Participating TO that is acquiring only existing transmission rights and facilities that are already under the CAISO's Operational Control, the CAISO proposed to develop a revised form of its "TAC Rate" spreadsheet to clarify that treatment. The CAISO's "TAC Rate" spreadsheet provides all the information regarding the Commission-accepted TRRs of the Participating TOs that comprise the CAISO's formula transmission Access Charge ("TAC") rates. The Commission directed the CAISO to make a compliance filing of its revised form of "TAC Rate" spreadsheet specifically to include additional columns that break down by TAC Area the aggregate TRRs for Existing High Voltage Facilities of Participating TOs associated with load and the resulting rates for these facilities to be used in calculating the net benefits and burdens and Transition Charge rates. 3 The CAISO's revised form of this spreadsheet is attached hereto as Attachment B. The revised spreadsheet attached is intended to confirm that the result of the currently-specified calculation is that the TRR of Startrans, as a Non-Load- Serving Participating TO that is acquiring only existing transmission rights that are already under the CAISO's Operational Control, will not be included in Transition Charge calculations. To ensure that this calculation is transparent, the CAISO has added additional columns to the spreadsheet to break out by TAC Area the aggregate TRRs for Existing High Voltage Facilities of Participating TOs associated with Load. In the attached spreadsheet, the TRR of Startrans is excluded from the calculation of the East Central TAC Area TRR (see column 11 B) and the ISO "grid-wide" TRR (see column 14B) associated with Load. The resulting rates and their effect on the net benefits and burdens and the Transition Charge rates are shown in the attached spreadsheet through the added calculation of TAC Area rates based on TRRs associated with Load (see column 13B) and the Existing High Voltage Facility ISO "grid-wide" rate now being based 2 The Commission also granted the CAISO's request for waiver of ISO Tariff Section 4.3.1.1 and Appendix F, Schedule 3, Section 8.1 to allow Startrans 1, L.L.C. ("Startrans") to become a Participating Transmission Owner ("TO") on the effective date requested by the CAISO. July 2 Order at P 41; see also P 1 ("we grant the waiver and proposed tariff change requested by the CAISO to permit the proposed amendments to become effective on April 23, 28"). No revisions to the ISO Tariff are needed to implement that waiver. 3 July 2 Order at P 35.
The Honorable Kimberly D. Bose August 1, 28 Page 3 only on TRRs associated with Load (see column 18). These two components now make up the overall Existing High Voltage Facility TAC rates (see column 21). Concurrent with this compliance filing of the attached revised form of "TAC Rate" spreadsheet in Attachment B, the CAISO is also today submitting a separate informational filing to the Commission of this "TAC Rate" spreadsheet pursuant to the CAISO's routine process for notifying the Commission of the effective date of revised CAISO TAC rates, in this case identifying the effect on TAC rates of the addition of the TRR of Startrans and the reduction in the TRR of the City of Vernon associated with the acquisition by Startrans of the Vernon transmission rights that were the subject of this proceeding. Materials Provided in the Instant Compliance Filing In addition to this transmittal letter, the instant compliance filing includes Attachments A and B. Attachment A contains clean ISO Tariff sheets reflecting the April 23, 28 effective date for the TCA tariff sheets described above. Attachment B contains the CAISO's revised form of "TAC Rate" spreadsheet including the additional columns and showing the additional information directed by the Commission. IV. Conclusion The CAISO respectfully requests that the Commission accept the instant filing as complying with the directives of the July 2 Order. Please contact the undersigned with any questions concerning this filing. Respectfully submitted, Michael D. Dozier Senior Counsel California Independent System Operator Corporation 151 Blue Ravine Road Folsom, CA 9563 Tel: (916) 68-748 Fax: (916) 68-7222 E-mail: mdozier@caiso.com Sean A. Atki s Bradley R. Miliauskas Alston & Bird LLP The Atlantic Building 95 F Street, NW Washington, DC 24 Tel: (22) 756-33 Fax: (22) 654-4875 E-mail: bradley.miliauskas@alston.com Attorneys for the California Independent System Operator Corporation
Attachment A Clean Sheets Startrans 1, L.L.C. Transmission Control Agreement Compliance Filing August 1, 28
CALIFORNIA INDEPENDENT SYSTEM OPERATOR CORPORATION FERC ELECTRIC TARIFF NO. 7 Substitute Third Revised Sheet No. ii SECOND REPLACEMENT TRANSMISSION CONTROL AGREEMENT Superseding Sub. 2 nd Rev Sheet No. ii 23. UNCONTROLLABLE FORCES 57 24.ASSIGNMENTS AND CONVEYANCES 58 25. ISO ENFORCEMENT 58 26. MISCELLANEOUS 58 27. SIGNATURE PAGE CALIFORNIA INDEPENDENT SYSTEM OPERATOR CORPORATION 64 28. SIGNATURE PAGE PACIFIC GAS AND ELECTRIC COMPANY 65 29. SIGNATURE PAGE SAN DIEGO GAS & ELECTRIC COMPANY 66 3. SIGNATURE PAGE SOUTHERN CALIFORNIA EDISON COMPANY 67 31. SIGNATURE PAGE CITY OF VERNON 68 32. SIGNATURE PAGE CITY OF ANAHEIM 69 33. SIGNATURE PAGE CITY OF AZUSA 7 34. SIGNATURE PAGE CITY OF BANNING 71 35. SIGNATURE PAGE CITY OF RIVERSIDE 72 36. SIGNATURE PAGE OF TRANS-ELECT NTD PATH 15, LLC 72A 37.SIGNATURE PAGE OF WESTERN AREA POWER ADMINISTRATION, SIERRA NEVADA REGION 72B 38. SIGNATURE PAGE OF CITY OF PASADENA 72C 39. SIGNATURE PAGE OF TRANS BAY CABLE LLC 72D 4.SIGNATURE PAGE OF STARTRANS 1, L.L.C. 72E APPENDICES A FACILITIES AND ENTITLEMENTS PG&E Appendix A and Supplement Edison Appendix A and Supplement SDG&E Appendix A and Supplement Vernon Appendix A Issued by: Anjali Sheffrin, Ph.D., Chief Economist Issued on: August 1, 28 Effective: April 23, 28
CALIFORNIA INDEPENDENT SYSTEM OPERATOR CORPORATION FERC ELECTRIC TARIFF NO. 7 Substitute Third Revised Sheet No. iii SECOND REPLACEMENT TRANSMISSION CONTROL AGREEMENT Superseding Sub. 2' d Rev Sheet No. iii Anaheim Appendix A Azusa Appendix A Banning Appendix A Riverside Appendix A Trans-Elect NTD Path 15, LLC Appendix A Western Area Power Administration, Sierra Nevada Region Appendix A Pasadena Appendix A Trans Bay Cable LLC Appendix A Startrans 1, L.L.C. Appendix A APPENDICES B - ENCUMBRANCES PG&E Appendix B Edison Appendix B SDG&E Appendix B Vernon Appendix B Anaheim Appendix B Azusa Appendix B Riverside Appendix B Pasadena Appendix B APPENDIX C - ISO MAINTENANCE STANDARDS APPENDIX D - MASTER DEFINITIONS SUPPLEMENT APPENDICES E - NUCLEAR PROTOCOLS Diablo Canyon Appendix E SONGS Appendix E APPENDIX F - NOTICES Issued by: Anjali Sheffrin, Ph.D., Chief Economist Issued on: August 1, 28 Effective: April 23, 28
CALIFORNIA INDEPENDENT SYSTEM OPERATOR CORPORATION FERC ELECTRIC TARIFF NO. 7 SECOND REPLACEMENT TRANSMISSION CONTROL AGREEMENT Substitute Original Sheet No. 23E 4.4.5 Startrans 1 4.4.5.1 In addition to the foregoing, the ISO, Startrans 1, L.L.C. ("Startrans 1"), and the Participating TOs acknowledge and agree that, following the ISO's approval of Startrans 1's application for Participating TO status and upon the effective date of Startrans 1's TO Tariff as approved by FERC, Startrans 1 shall be entitled and obligated to recover the just and reasonable costs of developing, financing, constructing, operating and maintaining transmission assets and associated facilities forming part of the network in which it has transmission rights and Entitlements through Startrans 1's Transmission Revenue Requirement as established from time to time by FERC, including the specific rate principles approved by FERC in Docket No. ER8-413, to the extent that the transmission assets and associated facilities used to provide the transmission rights and Entitlements, as well as the transmission rights and Entitlements themselves, are placed under ISO Operational Control. 4.4.5.2 In reliance on the continued availability of a FERC-approved Transmission Revenue Requirement, as set forth above, Startrans 1 will not withdraw from this Agreement except in connection with the transfer, sale or disposition of any of its transmission rights and Entitlements in compliance with Sections 3.3, 4.4, and any other applicable provision of this Agreement. Issued by: Anjali Sheffrin, Ph.D., Chief Economist Issued on: August 1, 28 Effective: April 23, 28
CALIFORNIA INDEPENDENT SYSTEM OPERATOR CORPORATION FERC ELECTRIC TARIFF NO. 7 SECOND REPLACEMENT TRANSMISSION CONTROL AGREEMENT Substitute Original Sheet No. 23F 4.4.5.3 If Startrans 1 should seek to transfer, sell or dispose of its transmission rights and Entitlements or any part thereof, then in addition to any and all other obligations imposed on such a transfer, sale or disposition by this Agreement, any applicable provisions of the ISO Tariff, and FERC rules and regulations, Startrans 1 shall require as a condition of such transfer, sale or disposition that the transferee of any of its transmission rights and Entitlement(s): (a) assume in writing Startrans 1's rights and obligations under this Agreement, including without limitation all of the obligations imposed by this Section 4.4.5, e.g., the obligation to recover the just and reasonable costs of developing, financing, constructing, operating and maintaining transmission assets and associated facilities forming part of the network in which it has transmission rights and Entitlements, as set forth in Section 4.4.5.1, exclusively through a FERC-approved Transmission Revenue Requirement; (b) become a Participating TO in the ISO; and (c) assume the obligation to bind each and every one of its transferees, successors and assigns to all of the obligations assumed by Startrans 1 under this Agreement. For the avoidance of doubt, the transfer of any of Startrans 1's transmission rights and Entitlements cannot take place unless and until the holder of any such transmission rights and Entitlements has, in conjunction with the transfer, become a Participating TO in the ISO. 4.4.5.4 Nothing in this Section 4.4.5 shall be interpreted as affecting the right of any party to seek to increase or decrease, at the FERC or appeals therefrom, the established or proposed Transmission Revenue Requirement of Startrans 1 or any subsequent holder of any of the transmission rights and Entitlements. Issued by: Anjali Sheffrin, Ph.D., Chief Economist Issued on: August 1, 28 Effective: April 23, 28
CALIFORNIA INDEPENDENT SYSTEM OPERATOR CORPORATION FERC ELECTRIC TARIFF NO. 7 SECOND REPLACEMENT TRANSMISSION CONTROL AGREEMENT Substitute Original Sheet No. 23G 4.4.5.5 Notwithstanding the foregoing subsections of Section 4.4.5, this Section 4.4.5 shall become null and void in the event of and upon the first to occur of: (a) Startrans 1 receives for three (3) consecutive months either an underpayment, pursuant to Section 11.18.3 of the ISO Tariff, or a pro rata reduction in payments under Section 11.16.1 of the ISO Tariff, with each such underpayment or pro rata reduction equal to or greater than twenty percent (2%) of the monthly amount due and owing to Startrans 1 from the ISO, or (b) Startrans 1 receives either an underpayment, pursuant to Section 11.18.3 of the ISO Tariff or a pro rata reduction in payments under Section 11.16.1 of the ISO Tariff which, when calculated on a cumulative annual basis, is equal to or greater than five percent (5%) of the total amount due and owing to Startrans 1 from the ISO for the twelve (12) month period ending prior to the month or months in which such underpayment or pro rata reduction occurs, provided such an underpayment or pro rata reduction does not result from: (i) Access Charge sales fluctuations that impact the monthly Access Charge revenue disbursement to Startrans 1, but which are subject to annual TRBA adjustment true-ups to be made by the Participating TO pursuant to Section 6.1 of Schedule 3 of Appendix F of the ISO Tariff; (ii) Startrans 1's action or failure to act; (iii) an error that has been corrected by the ISO; or (iv) a billing or payment dispute between Startrans 1 and the ISO. 4.4.5.6 Should this Section 4.4.5 become null and void under Section 4.4.5.5, then Startrans 1, the ISO and the other Participating TOs shall remain bound by all of the remaining provisions of this Agreement. Issued by: Anjali Sheffrin, Ph.D., Chief Economist Issued on: August 1, 28 Effective: April 23, 28
CALIFORNIA INDEPENDENT SYSTEM OPERATOR CORPORATION FERC ELECTRIC TARIFF NO. 7 Substitute Fifth Revised Sheet No. 64 SECOND REPLACEMENT TRANSMISSION CONTROL AGREEMENT Superseding Sub. 4 th Rev Sheet No. 64 27. SIGNATURE PAGE CALIFORNIA INDEPENDENT SYSTEM OPERATOR CORPORATION California Independent System Operator Corporation has caused this Transmission Control Agreement to be executed by its duly authorized representative on this day of, 28 and thereby incorporates the following Appendices in this Agreement: Appendices A Appendices B Appendix C Appendix D Appendices E Appendix F CALIFORNIA INDEPENDENT SYSTEM OPERATOR CORPORATION 151 Blue Ravine Road Folsom, California 9563 by: Jim Detmers Vice President, Operations Issued by: Anjali Sheffrin, Ph.D., Chief Economist Issued on: August 1, 28 Effective: April 23, 28
CALIFORNIA INDEPENDENT SYSTEM OPERATOR CORPORATION FERC ELECTRIC TARIFF NO. 7 SECOND REPLACEMENT TRANSMISSION CONTROL AGREEMENT Substitute Original Sheet No. 72E 4. SIGNATURE PAGE STARTRANS 1, L.L.C. STARTRANS 1, L.L.C. ("Startrans 1") has caused this Transmission Control Agreement to be executed by its duly authorized representative on this day of, 28 and thereby incorporates the following Appendices in this Agreement: Appendix A (Startrans 1) Appendix C Appendix D Appendix F STARTRANS 1, L.L.C. By: Madison Grose Vice Chairman and Senior Managing Director Issued by: Anjali Sheffrin, Ph.D., Chief Economist Issued on: August 1, 28 Effective: April 23, 28
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CALIFORNIA INDEPENDENT SYSTEM OPERATOR CORPORATION FERC ELECTRIC TARIFF NO. 7 SECOND REPLACEMENT TRANSMISSION CONTROL AGREEMENT Substitute Original Sheet No. 239 STARTRANS 1, L.L.C. Name of Primary Representative: Title: Address: City, State, Zip Code Email address: Phone: Fax No: Madison Grose Vice Chairman and Senior Managing Director Starwood Energy Group Global, L.L.C. 591 West Putnam Ave. Greenwich, CT 683 grosemstarwood.com (23) 422-7714 (23) 422-7814 Name of Alternative Representative: Title: Address: City, State, Zip Code Email address: Phone: Fax No: Stephen P. Zaminski Executive Vice President and Managing Director Starwood Energy Group Global, L.L.C. 591 West Putnam Ave. Greenwich, CT 683 szaminskistarwood.com (23) 422-7761 (23) 422-7861 Issued by: Anjali Sheffrin, Ph.D., Chief Economist Issued on: August 1, 28 Effective: April 23, 28
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CERTIFICATE OF SERVICE I hereby certify that I have served the foregoing documents upon all of the parties listed on the official service list for the above-referenced proceeding, in accordance with the requirements of Rule 21 of the Commission's Rules of Practice and Procedure (18 C.F.R. 385.21). Dated at Washington, D.C. this 1 st day of August, 28. Bradley R. iauskas