MISO Pseudo-Tie Agreement

MISO
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ATTACHMENT FFF
MISO Pseudo-Tie Agreement
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MISO PSEUDO-TIE AGREEMENT
This PSEUDO-TIE AGREEMENT (“Agreement”), dated _______________________,
is entered into by and between _______________________(“Market Participant”), organized
and existing under the laws of the State/Commonwealth of _______________________, and the
Midcontinent Independent System Operator, Inc. (“MISO”), a non-profit, non-stock corporation
organized and existing under the laws of the State of Delaware. Market Participant and MISO
each may be referred to as a “Party,” or collectively as the “Parties”.
RECITALS
WHEREAS, MISO acts in in its role as Reliability Coordinator (“RC”) and Balancing
Authority (“BA”); and
WHEREAS, the _______________________  generating facility/  load is located
within the _______________________ Balancing Authority Area (“BAA”), which acts as the
native Balancing Authority; and
WHEREAS, the _______________________ BA acts as the external BA; and
WHEREAS, the Market Participant desires to establish a new pseudo-tie between the
MISO BA and the external BA on the terms and conditions set forth in this Agreement; and
WHEREAS, MISO is a Regional Transmission Organization approved by the Federal
Energy Regulatory Commission (“Commission”) in serving as Transmission Provider for the
MISO Transmission System and operating its Energy and Operating Reserve Markets and is a
North American Electric Reliability Corporation (“NERC”)-certified BA; and
WHEREAS, Market Participant agrees to complete the Pseudo-Tie Implementation
Process Requirements and complies with all criteria outlined in the MISO Pseudo-Tie Business
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Practice Manual (BPM 030) prior to activation of this Pseudo-Tie; and
WHEREAS, pursuant to applicable NERC Standards and obligations, the external BA
will facilitate the delivery of generation or the transfer of load into the MISO Energy and
Operating Reserve Markets by the Market Participant to the MISO BA as defined below, or the
external BA will accept the delivery of Energy from the pseudo-tied generation or the transfer of
the energy withdrawal from the pseudo-tied load into the external BA by the Market Participant
from the MISO BA, as defined below; and
WHEREAS, the Market Participant is responsible for generation or load outside of the
boundaries of the MISO BAA and intends to participate in the MISO Energy and Operating
Reserve Markets as a resource or load, or the Market Participant is responsible for generation or
load inside the MISO BAA and intends to pseudo-tie its generation or load out of the MISO
Energy and Operating Reserve Markets; and
WHEREAS, subject to the terms of this Agreement, MISO agrees to accept the delivery
of generation or the transfer of load into the MISO BA by the Market Participant from the
external BA as defined below, or MISO has agreed to facilitate the delivery of generation or the
transfer of load into the external BA by the Market Participant from the MISO BA; and
WHEREAS, Market Participant represents the pseudo-tied generator or load in the BA
where the pseudo-tied generator or load is physically located, meets all of the MISO
qualifications in order to operate in the MISO Energy and Operating Reserve Markets, and
abides by applicable Business Practice Manuals and rules as set forth by MISO; and
WHEREAS, this Agreement applies only to pseudo-ties between the metered
boundaries of the MISO BAA and the external BAA, and does not apply to pseudo-ties wholly
internal to the MISO BAA; and
WHEREAS, the MISO Local Balancing Authority (“MISO LBA”) is the Local
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Balancing Authority (“LBA”) in the MISO Transmission Provider Region in which the pseudotied generator or load is physically located, or is the LBA in the MISO Transmission Provider
Region in which the external generator or external load will be included in the MISO
Commercial Model.
NOW, THEREFORE, in consideration of and subject to the mutual covenants
contained herein, it is agreed:
1.
Creation of Pseudo-Tie. On and after _________, the point at which the pseudo-tie is
made between _________________ (name of the generation or load) at _________________
(location of generation or load) (“Facility”) and the MISO BA is a new pseudo-tie between the
MISO BA and the external BA (“Pseudo-Tie”), whereby any energy delivered from or consumed
by the Facility at the Pseudo-Tie is treated as a Tie Line between the external BA and the MISO
BA. MISO does not take title to any energy delivered from or consumed by the Facility at the
Pseudo-Tie.
2.
Implementation. The Parties undertake to implement the Pseudo-Tie in accordance with
the following provisions:
(a) Market Participant Registration.
The entity representing the pseudo-tied
generator or load in the external BA, or the pseudo-tied generator or load within
the MISO BA, must register as a MISO Market Participant in the MISO Energy
and Operating Reserve Markets. The Market Participant must register each
Pseudo-Tie separately and in accordance with this Agreement, the registration
processes outlined in the Market Registration Business Practice Manual (BPM-001),
and any other applicable MISO registration processes. The Market Participant must
submit Attachment B – Change of Information Document and Commercial Model
Master Template and must adhere to all criteria outlined in Network and
Commercial Model Business Practice Manual (BPM-010).
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(b) Authority and Procedures. The Market Participant must implement this PseudoTie in a manner consistent with all provisions of the MISO Open Access
Transmission, Energy and Operating Reserve Markets Tariff (“Tariff”) and the
Pseudo-Ties Business Practice Manual (BPM 030). As the RC and BA, MISO
retains final authority to establish and enforce protocols for this Pseudo-Tie,
manage all data flow for the Pseudo-Tie, and make all final determinations
whether to implement or terminate this Pseudo-Tie.
All of the procedures
associated with this Agreement must conform to the direction of MISO as the
RC and BA and the direction of the MISO LBA.
(c) Transmission Service Reservation-Requirement.
The Market Participant must
maintain firm transmission service from the source to the sink of this Pseudo Tie
for the duration of this Agreement. MISO must confirm that the appropriate
Transmission Service Reservations are in place and maintained prior to granting
participation of the Pseudo-Tie in the M IS O Energy and Operating Reserve
Markets in the MISO BA or external BA. In the event that any Transmission
Service Reservation associated with this Pseudo-Tie expires, MISO may terminate
this Agreement and impose unreserved use charges on the Market Participant for
the total MW value of the Pseudo-Tie in accordance with the terms of the Tariff.
This Agreement does not provide for the reservation or sale of transmission service
on the MISO transmission system or on any other transmission system. The
Market Participant must secure and pay for all costs associated with transmission
service. MISO must adhere to allowable characteristics of power transfers and the
method for calculation of the Pseudo-Tie transmission service limit defined in the
Transmission Service System Impact Study associated with this Pseudo-Tie.
(d) Transmission Service Reservation - Modeling. Modeling of the Pseudo-Tie in the
Network Model must be consistent with the Transmission Service Reservation
source and sink. If a change is made to the source or sink data contained in the
Commercial Model, MISO retains the right to require the associated Transmission
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Service Reservation to be re-studied, to maintain the Pseudo-Tie with the
Transmission Service Reservation.
(e) Data measurement – Operating Instructions. The Market Participant must design,
construct, operate and maintain systems and communications equipment in order
to: (i) receive MISO deployment instructions for generators pseudo-tying into the
MISO BA; (ii) account for load pseudo-tying into the MISO BA; and (iii) enable
MISO to account for congestion and losses associated with generators and loads
pseudo-tying out of the MISO BA in accordance with the MISO Energy and
Operating Reserves Markets Business Practice Manual (BPM-002) and MISO
Market Settlements Business Practice Manual (BPM-005).
(f) Data measurement – ICCP and Reliability. The Market Participant must design,
construct, operate and maintain systems, at the Market Participant’s expense, in
order to provide the external BA and the MISO BA with the corresponding
pseudo-tie measurement values in accordance with RTO-SPEC-005 - ASM ICCP
Data Exchange Specification and RTO-SPEC-006 – MISO Reliability Data
Specification. The Market Participant’s systems must provide this signal to the
MISO BA pursuant to the MISO BA ICCP communication standards. The Market
Participant must provide this signal to the external BA in a manner mutually
agreed to by and between the external BA and the Market Participant. The Market
Participant must design, construct, operate and maintain real-time systems, at the
expense of the Market Participant, in order to provide the external BA and the
MISO BA with the corresponding real-time pseudo-tie measurement values in
accordance with the Meter Data Management Agent (“MDMA”) requirements as
specified in this Agreement and the Market Registration Business Practice Manual
(BPM-001).
(g) Settlement data specifications. The
Market
Participant
must
establish
the
necessary measurements with the MISO LBA in accordance with the Pseudo-Ties
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Business Practice Manual (BPM 030). The Market Participant must provide the
MISO BA with all necessary reliability data as required by RTO-SPEC-006 MISO
Reliability Data Specification (Reliability data – pseudo-tie line flows,
Transmission Load Reliability data) and all applicable market data as required by
RTO-SPEC-005 ASM ICCP Data Exchange Specification. The Market Participant
must provide the MISO BA with all applicable Tieline Metering Location
information in accordance with the provisions and requirements outlined in MISO
Network and Commercial Model Business Practice Manual (BPM 010) Section
3.3.4 - Agreed Upon Tieline Metering Location.
(h) Commitment and Dispatch.
MISO must provide the Market Participant
commitment and dispatch instructions for generators pseudo-tying into the MISO
BA for participation in the MISO Energy and Operating Reserve Markets.
(i) Real-Time Measurement values - generators. MISO must include the real time
pseudo-tie measurement values in its calculation of Net Actual Interchange
(“NAI”) and Area Control Error (“ACE”). The Market Participant must timely
provide all pseudo-tie megawatt (“MW”) values to the MISO LBA within which
the Pseudo-Tie sources or sinks. The Market Participant must ensure that the
MISO LBA timely provides these values to MISO. For generators pseudo-tying
into the MISO BA, the real time pseudo-tie measurement values provided by the
MISO LBA will be equal to the portion of the real-time telemetered generator
output received by MISO. The Market Participant must provide the real time
pseudo-tie measurement values to the relevant MISO LBA area in accordance with
NERC Standards and in a manner mutually agreed between the Market Participant
and the MISO LBA. For generators pseudo-tying out of the MISO BA, the real
time pseudo-tie measurement values must be equal to the real-time telemetered
generator output received by the external BA from the Market Participant. Market
Participant’s system must provide this signal to the external BA in a manner
mutually agreed between the external BA and the Market Participant.
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(j) Generation to Load Distribution Factor (GLDF) calculation. MISO may elect to
deny a proposed pseudo-tie or to terminate an existing Pseudo-Tie if the GLDF
calculations for the BA receiving the generation or load, used for Market Flow or
Network and Native Load (“NNL”) calculations, do not align within 2% of the
GLDF calculations of the native BA and/or Interchange Distribution Calculator on
the native BA’s Bulk Electric System Transmission System or on the facilities that
impact the native BA’s Bulk Electric System Transmission System.
(k) Real-Time measurement values – loads. MISO will include the real time pseudotie measurement values for the Pseudo-Tie in their respective calculations of NAI
and ACE.
For loads pseudo-tying into or out of the MISO BA, the Market
Participant must provide the pseudo-tie load MW values to the MISO LBA. The
Market Participant must ensure that the MISO LBA timely provides these values to
the MISO BA. For loads pseudo-tying into the MISO BAA, the real time pseudotie value will be equal to the real-time telemetered load consumption received by
the LBA from the Market Participant.
The Market Participant must
simultaneously provide this value to the external BA. For loads pseudo-tying out
of the MISO BAA, the real time pseudo-tie measurement values will be equal to
the real-time telemetered load consumption received by the external BA from
the Market Participant. The Market Participant must simultaneously provide this
value to the MISO LBA.
(l) Notification and penalties. Market Participant must notify the BA receiving the
generation or load of any real-time circumstances that affect the Market
Participant’s obligation or ability to meet their setpoint instructions. A generator or
load pseudo-tying into the MISO BA must be subject to the same penalties under
the Tariff as any other resource or load participating in the MISO Energy and
Operating Reserve Markets. Generators or load pseudo-tying out of the MISO BA
must be subject to the rules and procedures specified by the external BA.
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(m) Integration of real-time pseudo-tie values. In accordance with applicable NERC
Standards, the Market Participant must ensure that the MISO LBA within which
the Pseudo-Tie sources or sinks must integrate the real time pseudo-tie value with
the external BA on an hourly basis and maintain this information for Balancing
Authority checkout, inadvertent calculations, and payback purposes.
For
generators and loads pseudo-tying into the MISO BA, the external BA will check
out these hourly integrated values with the MISO LBA associated with the pseudotie prior to the external BA’s final daily checkout with the MISO BA in accordance
with all applicable NERC Standards. For generators and loads pseudo-tying out of
the MISO BA, the Market Participant must ensure that the MISO LBA checks out
the hourly integrated values with the Market Participant prior to the MISO LBA’s
final daily checkout with the external BA.
(n) Settlement data. For generators and loads pseudo-tying into the MISO BAA, the
Market Participant must submit settlement meter data for use in the settlement
process of the Real-Time Energy and Operating Reserve Market in accordance
with the Market Settlements Business Practice Manual (BPM-005). For generators
and loads pseudo-tying out of the MISO BAA, the Market Participant must submit
real-time actual flow data on the pseudo-tie Financial Schedule for use in the
settlement process of the Real-Time Energy and Operating Reserve Market in
accordance with the Market Settlements Business Practice Manual (BPM-005).
(o) Suspension. Except as otherwise provided in this Agreement, failure by the
Market Participant to provide real-time pseudo-tie measurement values in a
timely manner constitutes a basis for the immediate suspension of this
Agreement by the MISO BA in accordance with the applicable NERC standards. In
the event of such suspension, the Market Participant must remedy its failure prior
to r e s u m i n g participation in the MISO Energy and Operating Reserve Markets.
In the event that on two occasions within a thirty (30) day period the Market
Participant fails to provide real-time pseudo-tie measurement values in a
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timely manner, MISO may terminate this Agreement.
(p) Metered injections. Any metered injections or withdrawals into or out of the
MISO BA by the Market Participant must be consistent with transmission service
procured outside of this Agreement.
(q) Partial Pseudo-Ties. A Market Participant that registers a share of a Generation
Resource to participate in the MISO Energy and Operating Reserve Markets must
not remove from or alter the share of the Generation Resource as represented in the
Network Model until the next regularly scheduled Network Model and Commercial
Model update. Offers submitted by the Market Participant for the Generation
Resource associated with this Pseudo-Tie should reflect the physical capabilities of
the share of the unit registered with MISO, and are subject to the terms of Module
C and Module D of the Tariff for performance, monitoring, and mitigation. Partial
pseudo-ties into the MISO BA must be treated by MISO in the same manner as
any other generator or load located inside the MISO BAA.
The Market
Participant must provide telemetry data consistent with the portion of the unit
registered in MISO according to the Network and Commercial Model Update
Schedule. The Market Participant must ensure that dispatch directions from the
MISO BA and/or all external BAs are appropriately coordinated, combined, and
followed. The Market Participant must ensure that all BAs associated with the
Pseudo-Tie are made aware of all changes to any shares of the Pseudo-Tie. The
Market Participant may not pseudo-tie the same portion of a generator or load into
different BAs. The Market Participant must ensure that the partially pseudo-tied
generator injections into the MISO BA and external BA do not exceed the MW
limits registered and modeled in each BA. In the event that a partially pseudo-tied
generator injects energy into the MISO BA in excess of the MW limit registered
and modeled in the MISO BA, the Market Participant must forfeit any market
revenues derived from the injection that exceed the MW limit registered and
modeled in the MISO BA. In such an event, MISO may terminate this Agreement
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and issue additional sanctions against the Market Participant pursuant to the
Tariff.
3.
Metering. The Market Participant must coordinate all aspects of this Pseudo-Tie with a
MISO LBA in accordance with the terms of this Agreement, the MISO Pseudo-Tie Business
Practice Manual (BPM 030), and the Tariff. The Market Participant must ensure that the MISO
LBA will provide the telemetered data and checkouts associated with the Pseudo-Tie to MISO,
and is responsible for complying with all applicable NERC requirements relating to the
Pseudo-Tie in accordance with the Amended Balancing Authority Agreement.
4.
Retirement.
If the owner of the pseudo-tied generator plans to retire or suspend
operations of the unit, the Market Participant must ensure that the generator owner submits
Attachment Y as required under Module C of the Tariff. A generator that is pseudo-tied into the
MISO BA and that is registered as a Generation Resource in the MISO Energy and Operating
Reserve Markets must be eligible for designation as a System Support Resource (“SSR”)
pursuant to Module C of the Tariff.
In the event that a generator that is pseudo-tied out of
MISO terminates the pseudo-tie and registers as a Generation Resource in the MISO Energy and
Operating Reserve Markets, the generator may become eligible for designation as a SSR unit
pursuant to Module C of the Tariff.
5.
FTR and ARR Rights. This Agreement does not provide the Market Participant with the
right to modify any existing Auction Revenue Rights (“ARRs”) or Financial Transmission
Rights (“FTRs”) or to obtain new ARRs or FTRs for this Pseudo-Tie. In order for the Market
Participant to obtain ARRs or FTRs or to convert their eligible Transmission Service to ARRs,
the Market Participant must satisfy the ARR and/or FTR eligibility criteria and procedures
described in the Tariff and the MISO FTR and ARR Business Practice Manual (BPM-004).
6.
Losses and congestion. The Market Participant shall be charged or compensated for
losses and congestion that occur within the MISO BA as a result of this Pseudo-Tie in
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accordance with the Tariff, unless the Market Participant is exempt from such charges pursuant
to a binding and enforceable grandfathered agreement.
7.
Compensation.
For generators and loads pseudo-tying into the MISO BA and for
generators and loads pseudo-tying out of the MISO BA, the Market Participant must compensate
MISO for costs borne by MISO as a result of implementing and operating this Pseudo-Tie.
MISO retains the right to deny a proposed pseudo-tie if that pseudo-tie would cause MISO to
incur unreasonable administrative costs.
8.
Auditing. The Parties must retain all information and records relating to the performance
of this Agreement in a manner consistent with all FERC record retention requirements. Each
Party reserves the right to audit and examine such information and records at the other Party’s
premises during regular business hours and upon advance notice given no less than 15
calendar days prior to such examination.
9.
Effective Date. This agreement is to be effective on the later of: (i) the date of execution
by the Parties; or (ii) the date this Agreement is accepted by the Commission. Service under this
Agreement commences on the later of: (i) the service date established and mutually agreed by
and between the Parties; or (ii) any other date established by the Commission.
10.
Termination. In addition to all other termination rights provided under this Agreement,
service under this Agreement must terminate upon receipt of six (6) months written notification,
or on a date mutually agreed upon by the Parties, in accordance with the modeling update
guidelines.
11.
Governing Law. This Agreement, to the extent not subject to the jurisdiction of FERC,
must be governed by and construed in accordance with applicable State laws.
12.
Conflicts. In the event of a conflict between this Agreement and the Tariff, the Tariff
terms prevail.
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Interpretation. In this Agreement:
(a) The words “include”, “includes” and “including” are deemed to be followed by
the words “without limitation”;
(b) References to contracts, agreements and other documents and instruments are
construed as references to the same as amended, supplemented or otherwise
modified from time to time;
(c)
References to laws or standards and to terms defined in, and other provisions of,
laws or standards are constructed as references to the same (or a successor to the
same) as amended, supplemented or otherwise modified from time to time;
(d)
References to persons or entities are construed to include its successors and
permitted assigns and, in the case of a governmental or other authority (including
MISO and the North American Electric Reliability Corporation), any persons or
entities succeeding to its functions and capacities; and
(e) Any capitalized term used herein but not defined herein shall have the meaning
assigned to such term in the Tariff.
14.
Severability. If any provision of this Agreement is found to be invalid, illegal or
unenforceable in any jurisdiction, then the Parties agree that the validity, legality, and
enforceability of the remaining provisions of this Agreement in such or any other jurisdiction
and of such provision in any other jurisdiction must not in any way be affected or impaired
thereby. With respect to any provision held invalid, illegal or unenforceable, the Parties agree to
amend this Agreement as necessary to affect the original intent of the Parties.
15.
Additional Considerations.
Nothing in this Agreement is intended to modify any
obligations or rights of the Parties under the MISO Tariff, rate schedule, or contract. This
Agreement does not provide for transmission service or interconnection service, and does not
modify the rates, terms, or conditions of any transmission service reservation held by the
Market Participant. This Agreement is does not designate any additional service under Module
B, Module E-1, or Attachment X of the Tariff.
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Modification. Nothing in this Agreement is intended to modify or limit the right of the
Parties to submit proposed changes to this Agreement under pursuant to the Federal Power Act
Section 205 .
17.
Charges. Nothing in this Agreement authorizes the Market Participant to impose charges
without a separately filed tariff or rate schedule being accepted by the Commission.
18.
Disputes. Disputes arising under this Agreement must be resolved pursuant to the
dispute resolution procedures established in the Tariff.
19.
Breach. A breach is considered a substantive violation of this Agreement. Prior to
pursuing a remedy at the Commission for a breach, a non-breaching Party must provide five
(5) business days’ notice of the breach to the breaching Party. If the breaching Party does not
eliminate the breach within five (5) business days after the notice is received by the breaching
Party, then the non-breaching Party may pursue remedy in accordance with the dispute
resolution clause contained herein.
20.
Entire Agreement. This Agreement, which incorporates the Tariff, constitutes the entire
understanding and agreement of the Parties, and supersedes any and all previous
communications, representations, understandings, and agreements (oral or written) between the
Parties with respect to the subject matter hereof. The headings used in this Agreement are for
purposes of convenience only and must not be construed to affect the meaning or construction
of any of the provisions hereof.
21.
Incorporation. The Tariff and the Pseudo-Ties Business Practice Manual (BPM 030),
including all definitions contained therein, are incorporated into this Agreement in their entirety
and made a part hereof. The Market Participant is responsible for satisfying all requirements as
established in the Tariff, the Pseudo-Ties Business Practice Manual (BPM 030), and all other
applicable Business Practice Manuals.
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IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their
respective authorized officials.
Midcontinent Independent System Operator, Inc.
By:
________________________________
Name: ________________________________
Title: ________________________________
[Insert name of Market Participant]
By:
________________________________
Name: ________________________________
Title: ________________________________
Effective On: March 15, 2017