SUMMARY OF THE PROPOSED

SOUTHERN MINNESOTA MUNICIPAL POWER AGENCY

OPEN ACCESS TRANSMISSION TARIFF

PURSUANT TO FERC ORDER NO. 888













Presented by Bernard A. Cevera

April 9, 1997











PURPOSE: FERC has mandated that all public utilities that own, control, or operate facilities used for transmitting electric energy in interstate commerce must have on file an open access non-discriminatory transmission tariff that contains minimum terms and conditions of non-discriminatory service. While not generally subject to FERC, SMMPA is filing an Open Access Transmission Tariff to satisfy FERC's reciprocity requirements enabling SMMPA to participate in the buying and selling of power under the open access tariff. This paper was prepared to help explain how to use the tariff provisions when buying and selling power.


HOW THE SOUTHERN MINNESOTA MUNICIPAL POWER AGENCY TARIFF IS ORGANIZED:

I. COMMON SERVICE PROVISIONS - Definitions, Procedures.

II. POINT-TO-POINT TRANSMISSION SERVICE

III. NETWORK INTEGRATION TRANSMISSION SERVICE

SCHEDULE 1 Scheduling, System Control and Dispatch Service
SCHEDULE 2 Reactive Supply and Voltage Control from Generation Sources Service
SCHEDULE 3 Regulation and Frequency Response Service
SCHEDULE 4 Energy Imbalance Service
SCHEDULE 5 Operating Reserve - Spinning Reserve Service
SCHEDULE 6 Operating Reserve - Supplemental Reserve Service
SCHEDULE 7 Long-Term Firm and Short-Term Firm Point-To-Point Transmission Service
SCHEDULE 8 Non-Firm Point-To-Point Transmission Service

ATTACHMENT A Form Of Service Agreement For Firm Point-To-Point Transmission Service
ATTACHMENT B Form Of Service Agreement For Non-Firm Point-To-Point Transmission Service
ATTACHMENT C Methodology To Assess Available Transmission Capability
ATTACHMENT D Methodology for Completing a System Impact Study
ATTACHMENT E Index Of Point-To-Point Transmission Service Customers
ATTACHMENT F Service Agreement For Network Integration Transmission Service
ATTACHMENT G Network Operating Agreement
ATTACHMENT H Annual Trans. Revenue Requirement For Network Integration Trans. Service
ATTACHMENT I Index Of Network Integration Transmission Service Customers




II. POINT-TO-POINT TRANSMISSION SERVICE

Southern Minnesota Municipal Power Agency will provide Firm and Non-Firm Point-To-Point Transmission Service pursuant to the applicable terms and conditions of this Tariff. Point-To-Point Transmission Service is for the receipt of capacity and energy at designated Point(s) of Receipt and the transmission of such capacity and energy to designated Point(s) of Delivery.

Firm Point-To-Point Transmission Service

1. Term:

A. The minimum term shall be one day.

B. The maximum term shall be specified in the Service Agreement.

2. Reservation Priority:

Long-Term: First-come, first-served basis.

Short-Term: Conditional based upon the length of the requested transaction.

3. SMMPA shall offer a standard form Firm Point-To-Point Transmission Service Agreement to an Eligible Customer when it first submits a Completed Application for Firm Point-To-Point Transmission Service. Any redispatch, Network Upgrade or Direct Assignment Facilities costs to be charged to the Transmission Customer on an incremental basis under the Tariff will be specified in the Service Agreement prior to initiating service.

4. Curtailment of Firm Transmission Service: In the event that a Curtailment on SMMPA's Transmission System, or a portion thereof, is required to maintain reliable operation of such system, Curtailments will be made on a non-discriminatory basis. SMMPA will notify all affected Transmission Customers in a timely manner of any scheduled Curtailments.

5. Scheduling

A. No later than 3:00 p.m. of the day prior to commencement of service.

B. Stated in increments of 1,000 kW per hour.

C. Changes up to twenty (20) minutes before the next clock hour.

6. Transmission Service requests should be submitted by entering the information on SMMPA's OASIS. Requests of one year or longer must contain a written application to SMMPA.

7. Deposit

A. One month's charge payable at time of application or,

B. Full charge if less than one month.

8. The Transmission Customer is responsible for all Real Power Losses associated with all transmission service as calculated by SMMPA. The Real Power Loss Factor is 3.6%.

9. The Transmission Customer must meet creditworthiness criteria.

10. Compensation for Transmission Service is specified in the Schedules.



Non-Firm Point-To-Point Transmission Service

1. Term:

Periods ranging from one (1) hour to one (1) month.

2. Reservation Priority:

A. Shall be available from excess transmission capability.

B. A higher priority will be given to reservations with a longer duration of service.

3. SMMPA shall offer a standard form Non-Firm Point-To-Point Transmission Service Agreement to an Eligible Customer when it first submits a Completed Application for Non-Firm Point-To-Point Transmission Service.

4. Curtailment of Firm Transmission Service: SMMPA reserves the right to Curtail, in whole or in part, Non-Firm Point-To-Point Transmission Service provided under the Tariff for reliability reasons, when an emergency or other unforeseen condition threatens to impair or degrade the reliability of its Transmission System, or for economic reasons.

5. Scheduling:

A. No later than 3:00 p.m. of the day prior to commencement of service.

B. Stated in increments of 1,000 kW per hour.

C. Changes up to twenty (20) minutes before the next clock hour.

6. Application should be submitted by entering the information on SMMPA's OASIS.

7. Requests for Service:

Monthly No earlier than 60 days before service is to commence.

Weekly No earlier than 14 days.

Daily No earlier than 2 days.

Hourly No earlier than noon the day before.

8. SMMPA must determine Available Transmission Capability (ATC) no later than the following time periods for the following terms of service:

Monthly No later than 1 day.

Weekly No later than 4 hours.

Daily No later than 60 minutes.

Hourly No later than 30 minutes

9. The Transmission Customer must meet creditworthiness criteria.

10. Compensation for Transmission Service is specified in the Schedules.






III. NETWORK INTEGRATION TRANSMISSION SERVICE


Network Integration Transmission Service allows the Network Customer to integrate, economically dispatch and regulate its current and planned Network Resources to serve its Network Load in a manner comparable to that in which Southern Minnesota Municipal Power Agency utilizes its Transmission System to serve its Native Load Customers.

1. Eligible Customers must provide a completed Application to SMMPA for service.

2. SMMPA and the Eligible Customer must execute a Service Agreement.

3. The Eligible Customer must execute a Network Operating Agreement with SMMPA.

The Network Operating Agreement specifies the terms and conditions under which the Network Customer shall operate its facilities and the technical and operational matters associated with the implementation of Part III of the Tariff. Shall provide for:

A. Remote Terminal Units (RTUs), metering, communications equipment, and relaying equipment.

B. Interchange schedules, heat rates of network resources, and real time data.

C. Exchange load data and scheduling protocols.

4. Applications should be submitted by entering information on SMMPA's OASIS.

5. Deposit of one month's charge payable at time of application.

6. The Network Customer is responsible for replacing all Real Power Losses associated with all Transmission Service as calculated by SMMPA. The Real Power Loss Factor is 3.6%.

7. Monthly Demand calculation:

Load Ratio Share x 1/12 of SMMPA's Annual Transmission Revenue Requirement.

8. A Network Operating Committee will coordinate operations.




IV. SERVICE SCHEDULES



1. Scheduling, System Control and Dispatch Service

A. Requirements: The Transmission Customer must purchase this service from SMMPA or the Control Area operator.

B. Description: Required to schedule the movement of power through, out of, within, or into a Control Area.

C. Rates: The charges are included in the charges set forth in Schedules 7 and 8.



2. Reactive Supply and Voltage Control from Generation Sources Service

A. Requirements: The Transmission Customer must purchase this service from SMMPA or the Control Area operator.

B. Description: To maintain transmission voltage within acceptable limits.

C. Rates: For Network Integration Transmission Service Customers:

$0.0217/kW per month times the Transmission Customer's monthly coincident peak demand.

For Point-to-Point Transmission Service Customers:

Yearly delivery: $0.2119/kW per year.

Monthly delivery: $0.0177/kW per month.

Weekly delivery: $0.0040/kW per week.

Daily delivery: $0.0008/kW per day.

Hourly delivery: $0.050/MWH per hour.


3. Regulation and Frequency Response Service

A. Requirements: SMMPA must offer this service when the transmission service is used to serve load within its Control Area. Customers may purchase this service from SMMPA or make alternative comparable arrangements.

B. Description: This service is necessary to provide for the continuous balancing of resources with load and for maintaining scheduled interconnection frequency.

C. Rates: Network Integration Transmission Service Customer

$13.77 per KW per month.

Point-to-Point Transmission Service Customers

Yearly delivery: $165.24/kW per year.

Monthly delivery: $13.77/kW per month.

Weekly delivery: $3.18/kW per week.

Daily delivery: $0.64/kW per day.

Hourly delivery: $40.00/MWH per hour.




4. Energy Imbalance Service

A. Requirements: SMMPA must offer when the transmission service is used to serve load in its Control Area. The Transmission Customer must purchase this service from SMMPA or make alternative comparable arrangements.

B. Description: This service is provided when a difference occurs between the scheduled and the actual delivery of energy to a load located within a Control Area over a single hour.

C. Rates: For the hourly deliveries from SMMPA of energy outside the deviation band, or for energy imbalance with the deviation band not reduced to zero within thirty (30) days, the Transmission Customer shall compensate SMMPA for service at a rate equal to 110% of SMMPA's System Incremental Cost (SIC).

Under deliveries outside the band-width, a charge equal to 100 Mills/kWh.

Over deliveries outside the band-width, a credit equal to 90% of SMMPA's SIC.



5. Operating Reserve - Spinning Reserve Service

A. Requirements: SMMPA must offer to provide to Transmission Customers serving load in SMMPA's control area. Can be purchased from a third party.

B. Description: Needed to serve load immediately in the event of a system contingency. Provided by generating units that are on line and loaded at less than their maximum output.

C. Rates: Network Integration Transmission Service Customer:

Demand Charge: $13.77/kW per month times the Customer's Load Ratio Share of SMMPA's spinning reserve requirement.

Energy Charge: 110% of SMMPA's SIC.

Point-to-Point Transmission Service Customer:

Demand Charge Yearly delivery: $165.24/kW per year.

Monthly delivery: $13.77/kW per month.

Weekly delivery: $3.18/kW per week.

Daily delivery: $0.64/kW per day.

Hourly delivery: $40.00/MWH per hour.

Energy Charge: 110% of SMMPA's SIC.


6. Operating Reserve - Supplemental Reserve Service

A. Requirements: SMMPA must offer to provide to Transmission Customers serving load in SMMPA's control area. Can be purchased from a third party.

B. Description: Needed to serve load in the event of a system contingency; however, it is not available immediately to serve load but rather within a short period of time. May be provided by generating units that are on-line but unloaded, by quick-start generation, or by interruptible load.

C. Rates: Network Integration Transmission Service Customer:

Demand Charge: $2.18/kW per month times the Customer's Load Ratio Share of SMMPA's supplemental reserve requirement.

Energy Charge: 110% of SMMPA's SIC.

Point-to-Point Transmission Service Customer:

Demand Charge: Yearly delivery: $26.12/kW per year.

Monthly delivery: $2.18/kW per month.

Weekly delivery: $0.50/kW per week.

Daily delivery: $0.10/kW per day.

Hourly delivery: $6.25/MWH per hour.

Energy Charge: 110% of SMMPA's SIC




7. Long-Term Firm and Short-Term Firm Point-To-Point Transmission Service

The Transmission Customer shall compensate SMMPA each month for Reserved Capacity at the sum of the applicable charges set forth below:

Yearly delivery: $31.96/kW of Reserved Capacity per year.

Monthly delivery: $2.66/kW of Reserved Capacity per month.

Weekly delivery: $0.61/kW of Reserved Capacity per week.

Daily delivery: $0.12/kW of Reserved Capacity per day.

Three principal requirements apply to discounts for transmission service as follows:

(1) Any offer of a discount made by SMMPA must be announced by posting on the OASIS.

(2) Any customer-initiated requests must occur solely by posting on the OASIS.

(3) Once a discount is negotiated, details must be immediately posted on the OASIS. For any discount agreed upon for service on a path, from point(s) of receipt to point(s) of delivery, SMMPA must offer the same discounted transmission service rate for the same time period to all Eligible Customers on all unconstrained transmission paths that go to the same point(s) of delivery on the Transmission System.


8. Non-Firm Point-To-Point Transmission Service

The Transmission Customer shall compensate SMMPA for Non-Firm Point-To-Point Transmission Service up to the sum of the applicable charges set forth below:

Monthly delivery: $2.66/kW of Reserved Capacity per month.

Weekly delivery: $0.61/kW of Reserved Capacity per week.

Daily delivery: $0.12/kW of Reserved Capacity per day.

Hourly delivery: Charge agreed upon by the Parties at the time this service is reserved. Shall not exceed $7.50/MWH.

Three principal requirements apply to discounts for transmission service as follows:

(1) Any offer of a discount made by SMMPA must be announced by posting on the OASIS.

(2) Any customer-initiated requests must occur solely by posting on the OASIS.

(3) Once a discount is negotiated, details must be immediately posted on the OASIS. For any discount agreed upon for service on a path, from point(s) of receipt to point(s) of delivery, SMMPA must offer the same discounted transmission service rate for the same time period to all Eligible Customers on all unconstrained transmission paths that go to the same point(s) of delivery on the Transmission System.