4901:1-20-17 Independent transmission plan.

(A) Purpose and scope

Section 4928.12 of the Revised Code requires each electric utility owning transmission facilities to be a member of, and transfer control of the transmission facilities it owns or controls within Ohio to, a qualifying transmission entity. To be a qualifying independent transmission entity, it must satisfy nine specifications as listed in division (B) of section 4928.12 of the Revised Code, and the specifications as clarified in paragraph (B) of this rule. By authority of division (E) of section 4928.12 of the Revised Code, the commission has established the requirements as found in paragraph (B)(3)(a) of this rule as an interim measure between the time retail competition starts and the time a transmission entity is fully operational to encourage retail competition.

(B) The following are the means by which an electric utility will demonstrate its compliance with independent transmission entity specifications:

(1) The transmission entity is approved by the federal energy regulatory commission (FERC).

If the transmission entity is approved by the FERC, provide the FERC order and any remedies to the conditions imposed upon the FERC approval.

(2) The transmission entity effects separate control of transmission facilities from control of generation facilities.

(a) The transmission entity must have the ability to administer and file proposed changes to its tariff independently.

(b) The transmission entity must have ultimate operational responsibility for all transmission facilities.

(c) The transmission entity shall have the authority to order that additional transmission facilities be transferred under the control of the transmission entity to ensure system reliability.

(3) The transmission entity implements, to the extent reasonably possible, policies and procedures designed to minimize pancaked transmission rates within Ohio.

Effective with the start of competition, January 1, 2001, electric utilities under the commission's jurisdiction should either:

(a) All be in one transmission entity that minimizes pancaked rates to all retail customers within Ohio; or

(b) Provide appropriate reciprocity requirements between Ohio jurisdictional companies that minimize pancaking of rates within the state to the satisfaction of the commission; or

(c) Propose another means to effectuate the policy objectives set forth in section 4928.12 of the Revised Code as those objectives relate to the movement of power within Ohio to retail customers with a minimum of pancaking of rates.

All utilities electing paragraph (B)(3)(c) of this rule shall provide documentation in their transition filings so as to enable the commission to determine whether they have met their burden of proof to satisfy the statutory policy objectives as they relate to transmission.

All such mechanisms to minimize pancaking of rates within Ohio shall be in place by January 1, 2001, unless otherwise determined by the commission.

(4) The transmission entity improves service reliability within Ohio.

Upon commercial operation:

(a) The transmission entity shall be responsible as the procurer of last resort for the ancillary services necessary for reliable operation of the transmission grid. If an effective ancillary services market is established to the satisfaction of the commission and the FERC, utilization of such market shall be considered as satisfying these requirements.

(b) The transmission entity shall have a mechanism to address inter-transmission entity parallel path/loop flow loading of critical transmission facilities within the region.

(c) The transmission entity shall be responsible for the expansion and planning functions for transmission facilities under its control.

(5) The transmission entity achieves the objectives of an open and competitive electric generation marketplace, elimination of barriers to market entry and preclusion of control of bottleneck electric transmission facilities in the provision of retail electric service.

Upon commercial operation:

(a) The transmission entity shall operate a single OASIS site for all transmission facilities under its control.

(b) The transmission entity shall be responsible for processing all requests for transmission service.

(c) The transmission entity shall provide "one-stop" access to transmission service.

(d) The transmission entity shall be responsible for the calculation of available transfer capability (ATC). As such, the transmission entity shall have the responsibility to determine factors affecting ATC such as capacity benefit margin (CBM), transmission reliability margin (TRM), and equipment ratings.

(e) In the event of a dispute regarding the transmission entity's determination of ATC and CBM, clear procedures shall be established to determine which party's position shall prevail pending the outcome of alternative dispute resolution or complaint procedures.

(f) The transmission entity shall have in place an alternative dispute resolution process capable of resolving conflicts regarding the use and control of the transmission facilities on an expedited basis.

(g) The transmission entity shall act as the single security coordinator for the transmission facilities subject to its authority.

(6) The transmission entity is of sufficient scope or otherwise operates to substantially increase economical supply options for consumers.

(a) The transmission entity shall encompass a geographic region capable of substantially increasing economic supply options for customers.

(b) The transmission entity shall be of sufficient size and scope to preclude the exercise of market power over bottleneck constrained transmission corridors.

(7) The governance structure or control of the transmission entity is independent of the users of the transmission facilities, and no member of its board of directors has an affiliation with such a user or with an affiliate of a user during the member's tenure on the board such as to unduly affect the transmission entity's performance.

(a) The transmission entity, its employees, and directors shall not have any performance-based financial interest in any electricity market participant.

(b) The transmission entity shall have a decision-making process that is independent of control by any market participant or class of participants.

(c) The transmission entity shall provide all market participants comparable opportunities on advisory committees and working committees within the transmission entity.

(8) The transmission entity operates under policies that promote positive performance designed to satisfy the electricity requirements of customers. Upon commercial operation, the transmission entity must monitor markets for transmission service and the behavior of transmission owners, if any, to determine if their actions hinder the transmission entity in providing reliable, efficient, and nondiscriminatory transmission service. The transmission entity must periodically assess and report to the commission the findings and corrective action taken by the transmission entity.

(9) The transmission entity is capable of maintaining real-time reliability of the electric transmission system, ensuring comparable and nondiscriminatory transmission access and necessary service, minimizing system congestion, and further addressing real or potential transmission constraints.

Upon commercial operation:

(a) The transmission entity must have authority for maintaining the short-term reliability of the transmission grid. As such, the transmission entity shall be responsible for receiving and approving all requests for scheduled outages of transmission facilities.

(b) The transmission entity must independently establish the terms and conditions for providing transmission grid connections to new generators.

(c) The transmission entity shall independently establish and administer a selection process for transmission expansion and alteration projects.

R.C. 119.032 review dates: 08/02/2004 and 11/30/2008

Promulgated Under: 111.15

Statutory Authority: 4928.06

Rule Amplifies: 4928.12 , 4928.34(A) , 4928.35(G)

Prior Effective Dates: 3/10/00