What’s New in Southern Companies’ OATT

Southern Company Transmission 2008 Customer Forum

Background• Order 890 issued on Feb. 16, 2007• 890 compliance filings made on July 13, 2007• Attachment C filed on Sept. 11, 2007• Attachment K filed on Dec. 7, 2007• Order 890-A issued on Dec. 28, 2007• 890-A compliance filings made on Mar 17, 2008

Order 890 and 890-A

• As a result of FERC Orders, our Tariff is being updated frequently– Since July 13 there have been 5 revisions

driven by Order 890 & 890-A

• At any time, the latest version is on our OASIS at:https://www.weboasis.com/OASIS/SOCO/INFO.HTM

• Topics to Cover– Planning Redispatch and Conditional Firm Service– Rollover Rights– Attachment K– Unreserved Use Penalties– Attachment C– Business Practices– Performance and Study Metrics– Generator Imbalance Service– Creditworthiness

PR / CFS

• Order 890 modified Planning Redispatch and created Conditional Firm Service

• For either to be studied, Customer must select the option in the System Impact Study agreement

• TP at its discretion, can offer a mix of PR and CFS

PR / CFS• Caveats

– Only available for Point-to-Point service– Only an option for service of 2 years or more– For customers unwilling to commit to

enhancements, PR and CFS will have a biennial reassessment

– The “bridge” product for customers committed to enhancements has no reassessment

• TP required to provide both specific conditions and number of hours for customer to choose from

• CFS not available for network customers

• Still only allowed 60 days to perform a SIS with PR and / or CFS options

PR / CFS

PR / CFS• Important takeaways

– PR and/or CFS must be selected by the customer in the SIS agreement

– PR and CFS will only be offered if reliability is not harmed

Rollover Rights• Currently

– To exercise Rollover Rights, Customer must have yearly service and request 60 days prior to expiration of service

• Per Order 890– Five-year term required to have rollover rights– One-year notice provision

Rollover Rights• When does this become effective?

– Effective upon acceptance of Attachment K– Attachment K filed on Dec. 7, 2007– To date, no Transmission Providers’

Attachment K has been accepted by FERC

Attachment K

• Coordinated, Open, and Transparent Transmission Planning required as part of Order 890

• Attachment K describes the Southeastern Regional Transmission Planning Process and the Southeast Inter-Regional Process

Attachment K• Provides detail on how Southern

Companies intend on addressing the eight planning principles:

- Coordination

- Openness

- Transparency

- Information Exchange

- Comparability

- Dispute Resolution

- Regional Participation

- Economic Planning Studies

Attachment K• Southeastern Regional Planning Process

– Initiative started prior to Order 890– Sponsors

• PowerSouth• Dalton Utilities• GTC• MEAG• SMEPA• Southern Company

– Currently have 40 registered participants

Attachment K

• Regional Planning Stakeholders Group

• Four meetings per year

• Next on June 25, 2008 - Preliminary Expansion Plan

• Regional Planning Website: http://www.southeasternrtp.com/

Attachment K• Per section 1.2.1 – up to 5 economic

studies to be performed– Stakeholders selected the following at the

March 5, 2008 meeting:• 1000 MW from Mobile, AL to Atlanta• 1000 MW from Alabama to Florida• 1000 MW from Entergy to Alabama• 1000 MW from GA-ITS to SCPSA and SCEG• 2000 MW from Entergy to GA-ITS

Attachment K• Inter-Regional Planning Process

– Coordination with transmission systems Provider is interconnected with.

– Inter-Regional Planning Website: http://www.southeastirpp.com/

Unreserved Use Penalties

• Penalty charges developed by FERC in Order 890 (P846)– Penalty for single hour will be based on daily,

firm point-to-point service– More than one assessment for a given

duration will increase the penalty period to the next longest duration

Unreserved Use Penalties• Per FERC

– P452 (890-A) - It is the obligation of the transmission customer, not the transmission provider, to ensure that the customer has reserved the transmission service that it uses.

– P447 (890-A) - The Commission declines to distinguish between intentional and unintentional unreserved transmission uses and reiterates that all unreserved uses will be subject to operational penalties.

– P448 (890-A) - The Commission continues to believe that it would not be appropriate to exempt any class of customers from unreserved use penalties.

– P838 (890) – We will not limit unreserved use penalties to instances where the unreserved use jeopardizes the reliable operation of the transmission system.

Unreserved Use Penalties

• Penalty structure described in Business Practices– https://

www.weboasis.com/OASIS/SOCO/BusinessPractices/Southern Company Transmission General Business Practices.pdf

Unreserved Use Penalties• Annual Report for Penalty Assessments

posted on OASIS– Penalties assessed on 8 Pt-Pt customers and

4 network customers– For 2007 (July-Dec), $816,023.97 collected

• Report also includes how penalty will be distributed

Attachment C• Describes methodology to assess

Available Transfer Capability (“ATC”)

• Includes– ATC algorithms– Process Flow-Diagram– Detailed TRM and CBM descriptions

Attachment C

• Southern Companies Attachment C filed on Sept 11, 2007

• FERC Accepted with modification on March 28, 2008

• Southern Companies made a compliance filing on April 28, 2008

Business Practices

• Order 890 requires that all business practices that relate to transmission service be posted

• Southern Companies’ Business Practices can be found in General Information section of OASIShttps://www.weboasis.com/OASIS/SOCO/INFO.HTM

Business Practices• Includes

– General Business Practices• OASIS Registration• Billing Practices• Reservation and Scheduling Information

– CFS Tagging and Tracking– Distribution of Penalties– Procedures for Changing Business Practices

Performance Metrics• 890 Requires the Transmission Provider to

make quarterly reports on performance metrics

• Provides details on study agreements, time to complete studies, etc.

• Differentiates between affiliate and non-affiliate

Generator Imbalance Service

• Described in Schedule 10– Charges for generator imbalances– Description of incremental / decremental cost

• Attachment R– Service Agreement Template for generator

imbalance

Generator Imbalance Service

• Questions about Generator Imbalance service should be directed to:

Bryan Hill

Interconnections Project Mgr

205.257.3409

bkhill@southernco.com

Creditworthiness

• Attachment Q outlines the credit worthiness requirements for conducting business under our Tariff

• The Credit Manual (posted on OASIS) provides additional implementation details

• These constitute our “Credit Policy”

Creditworthiness• Attachment Q

– Credit Evaluation– Unsecured Credit Line– Eligible Collateral Requirements– Total Credit Limit Amounts– Communication with Applicants and

Customers