LOCAL BALANCING AUTHORITY AGREEMENT
This Local Balancing Authority Agreement (“Agreement”) is made effective as of the Effective
Date (as defined herein), by and between _________________(“Customer”), an
_______________ having a principal place of business at ______________________________
and Entergy Arkansas, Inc. (“EAI”), a company organized under the laws of the State of
Arkansas. Customer and EAI are individually referred to herein as “Party,” or collectively as
WHEREAS, the Energy Policy Act of 2005 authorized FERC to approve Reliability
Standards with which users, owners, and operators of the bulk power system are required to
WHEREAS, FERC has approved certain Reliability Standards and associated
requirements proposed by NERC, the Electric Reliability Organization authorized by the Energy
Policy Act of 2005 to develop such standards; and
WHEREAS, NERC holds entities responsible for compliance with particular Reliability
Standards based on the function those entities perform with respect to the operation of the bulk
power system; and
WHEREAS, EAI will be the Local Balancing Authority (“LBA”) for the EAI LBA Area
that operates in the MISO Balancing Authority; and
WHEREAS, the MISO First Revised Rate Schedule FERC No. 3 requires an LBA to
know the status of all resources, generation, and transmission available for use in its LBA Area;
WHEREAS, Customer either (1) owns bulk electric facilities and is engaged in the
generation and sale of electric power and energy from those facilities; (2) is connected to such
facilities operated within the EAI LBA Area; and/or (3) serves load in the EAI LBA Area; and
WHEREAS, the Parties desire to establish responsibility for maintaining compliance
with the applicable NERC Balancing Authority Reliability Standards and MISO requirements
within the EAI LBA Area;
NOW, THEREFORE, in consideration of the promises and mutual covenants set forth
herein, and other good and valuable consideration, the sufficiency of which is hereby
acknowledged, the Parties enter into this Agreement to document the inclusion of Customer’s
load and/or generation in EAI’s LBA Area and to make clear their respective obligations with
respect to each other for the applicable MISO Market and Reliability Standards:
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As used in this Agreement, the following defined terms shall have the meanings set forth
below; to the extent capitalized terms are used in this Agreement but are not included in
this section, those terms shall have the same definitions as set forth in the Midwest ISO
Tariff, Business Practice Manual or NERC Reliability Standards and Glossary of Terms,
provided that, in the event that the same term is defined differently in the Midwest ISO
Tariff and the NERC Glossary of Terms, the NERC Glossary of Terms definition shall
1.1 “Affiliate” means any person or entity, any individual, corporation, partnership,
firm, joint venture, association, joint-stock company, trust, or unincorporated
organization, directly or indirectly controlling, controlled by, or under common
control with a Party.
1.2 “Balancing Authority” or “BA” means the responsible entity that integrates
resource plans, maintains load-interchange-generation balance within the MISO
Balancing Authority, and supports the Eastern Interconnection frequency in real-
time. For the purposes of this Agreement, the Balancing Authority is MISO.
1.3 “Business Day” means any day that is not a Saturday, Sunday, or NERC-
1.4 “Customer Facility” means the generating and/or transmission facility or
facilities together with the other property, facilities, and equipment owned and/or
controlled by Customer on Customer’s side of the Points of Interconnection at
transmission voltage, to the extent Customer owns and/or controls any generating
or transmission facilities.
1.5 “Customer Load” means the load served by Customer in the EAI LBA Area.
1.6 “Dynamic Transfers” means the provision of the real-time monitoring,
telemetering, computer software, hardware, communications, engineering, energy
accounting (including inadvertent interchange), and administration required to
electronically move all or a portion of the real energy services associated with a
generator or load of one balancing authority area into another.
1.7 “Effective Date” means the date on which the EAI LBA Area integrates into
1.8 “Emergency” means an abnormal system condition that requires automatic or
immediate manual action to prevent or limit the failure of transmission facilities
or generation supply that could adversely affect the reliability of the Bulk Electric
1.9 “Energy Imbalance Service” means a service that is provided when a difference
occurs between the Energy scheduled in the Day-Ahead Energy Market and the
actual delivery of Energy to a Load located within the Midwest ISO Balancing
Authority Area over a single hour in the Real-Time Energy Market. The
Transmission Provider shall offer this service when Transmission Service is used
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to serve Load within the Transmission Provider Region. Each Market Participant
must purchase Energy Imbalance Service from the Transmission Provider.
1.10 “Energy Market” means the day-ahead and/or real-time energy markets operated
1.11 “FERC” or “Commission” means the Federal Energy Regulatory Commission
or its successor.
1.12 “Generating Unit(s)” means an individual electric generating unit or group of
units and associated plant and apparatus with common connection points and
meters whose electrical output is capable of being separately identified and
metered that, in either case, is located within the EAI LBA Area, and capable of
producing and delivering net energy (energy in excess of a generating station's
internal power requirements) to the interconnected bulk electric transmission
1.13 “Good Utility Practice” means any of the practices, methods, and acts engaged
in or approved by a significant proportion of the electric utility industry during the
relevant time period, or any of the practices, methods, and acts which, in the
exercise of reasonable judgment in light of the facts known at the time the
decision was made, could have been expected to accomplish the desired result at
the lowest reasonable cost consistent with reliability, safety, and expedition.
Good Utility Practice is not intended to be limited to the optimum practice,
method, or act to the exclusion of all others, but rather is intended to include
acceptable practices, methods, or acts generally accepted in the region, but not
1.14 “Local Balancing Authority” or “LBA” means an operational entity which is (i)
responsible for compliance to NERC for the subset of NERC Balancing Authority
Reliability Standards defined in Midwest ISO First Revised Rate Schedule FERC
No. 3 for its local area within the Midwest ISO Balancing Authority Area, (ii) a
Party to Midwest ISO First Revised Rate Schedule FERC No. 3, excluding the
Midwest ISO, and (iii) shown in Appendix A of Midwest ISO First Revised Rate
Schedule FERC No. 3.
1.15 “Local Balancing Authority Area” or “LBA Area” or “LBAA” means the
collection of generation or resources, transmission systems, and loads within the
metered boundaries of a Local Balancing Authority.
1.16 “Market Participant” or “MP” means an entity that (i) has successfully
completed the registration process with the Transmission Provider and is qualified
by the Transmission Provider as a Market Participant, (ii) is financially
responsible to the Transmission Provider for all of its Market Activities and
obligations, and (iii) has demonstrated the capability to participate in its relevant
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1.17 “Meter Data Management Agent” or “MDMA” shall mean an entity
designated by the Market Participant that provides meter data, representing the
Actual Energy Injections or Actual Energy Withdrawals at each Commercial
Pricing Node (“CP Node”) for which it is designated, to the Transmission
Provider on a Market Participant’s behalf.
1.18 “MDMA Services” means the collection of metering data from Customer and/or
the meters described in Section 6.1 and the submission of metering data to MISO.
The metering data to be collected as MDMA Services may include, but is not
limited to, the data set forth in Appendix B.
1.19 “Midwest ISO Tariff” means the Commission-approved Midwest ISO Open
Access Transmission, Energy, and Operating Reserve Markets Tariff, and any
amendments thereto, pursuant to which MISO provides transmission service and
operates the Energy and Operating Reserve Markets.
1.20 “MISO” or “Midwest ISO” means the Midwest Independent Transmission
System Operator, Inc., or its successor.
1.21 “MISO Market” means the Energy and Operating Reserve Markets or markets
operated by MISO under the Midwest ISO Tariff.
1.22 “NERC” means the North American Electric Reliability Corporation or its
1.23 “Net Actual Interchange or “NAI” means the summation of all actual energy
flow into and out of an LBA via interconnected tie points. Positive NAI indicates
a LBA is a net exporter of energy and a negative NAI indicates a LBA is a net
importer of energy.
1.24 “Non-MISO Balancing Authority” means the responsible entity that integrates
resource plans ahead of time, maintains load-interchange-generation balance
within its balancing authority area, and supports interconnection frequency in
real-time, but is not within the Balancing Authority.
1.25 “Points of Interconnection” means the point or points at which the Customer
Facility is connected to the transmission system, to the extent Customer owns or
controls a Customer Facility or the point or points at which Customer takes
delivery of energy from Transmission Provider’s Transmission System to serve
1.26 “Regulation and Frequency Response Service” means an ancillary service
providing for the continuous balancing of resources (generation and interchange)
with load and for maintaining scheduled interconnection frequency, which is
accomplished by committing on-line generation whose output is raised or lowered
(predominantly through the use of automatic generating control equipment) and
by other non-generation resources capable of providing this service as necessary
to follow moment-by-moment changes in load.
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1.27 “Reliability Coordinator” The entity that is the highest level of authority that is
responsible for the reliable operation of the Bulk Electric System, has the Wide
Area view of the Bulk Electric System, and has the operating tools, processes and
procedures, including the authority to prevent or mitigate Emergency operating
situations in both next-day analysis and real-time operations. The Reliability
Coordinator has the purview that is broad enough to enable the calculation of
Interconnection Reliability Operating Limits, which may be based on the
operating parameters of transmission systems beyond any Transmission
1.28 “Reliability Standards” means those requirements, approved by the
Commission, to provide for reliable operation of the bulk-power system.
Reliability Standards, as that term is used in this Agreement, refers to the
effective requirements and any modifications or revisions that may become
effective following the Effective Date of this Agreement.
1.29 “Revenue Meters” means the revenue meters installed or to be installed for the
Customer Facility and/or Customer Load meeting the specifications and standards
in Appendix A.
1.30 “Revenue Quality Metering System” or “RQMS” means all metering
equipment currently installed or to be installed at any of the Customer’s Facilities
located within the EAI LBA and other associated equipment, including, but not
limited to, current transformers (“CTs”), potential transformers (“PTs”), meter
sockets, test switches, conduit for secondaries of metering CTs and PTs,
secondary wiring of metering CTs and PTs, and terminal blocks necessary to
measure the power flow into or out of the Customer Facility or Customer Load
and to support the provision of data listed in Appendix B.
1.31 “Remote Terminal Unit” or “RTU” means a microprocessor-controlled
electronic device that interfaces objects in the physical world to a distributed
control system or supervisory control and data acquisition system by transmitting
telemetry data to the system, and by using messages from the supervisory system
to control connected objects.
1.32 “SERC Reliability Corporation” or “SERC” means the regional entity to
which NERC has delegated authority, or its successor organization.
1.33 “Transmission Provider” means the Midwest ISO or any successor
2. INCLUSION OF CUSTOMER FACILITY AND/OR CUSTOMER LOAD IN THE
EAI LBA AREA
2.1 LBA Area
The Parties agree that, upon the Effective Date, Customer Load and/or Customer
Facility – both at the Points of Interconnection – shall be added to and included in
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EAI’s LBA Area and further agree that the inclusion of Customer Load and/or
Customer Facility in EAI’s LBA Area shall continue until this Agreement is
terminated by the Parties.
2.2 Compliance with Orders
As applicable, each Party shall be bound by the relevant interpretations and final
orders of FERC and NERC, and by directives by MISO as Reliability Coordinator
regarding the actions that are required to be taken by each Party in order to fulfill
its obligations under this Agreement. For avoidance of doubt, an order is “final”
when the order is no longer subject to a request for rehearing or judicial review.
3. EAI LBA OBLIGATIONS
To the extent MISO, NERC or FERC institute an audit or investigation of
Customer’s compliance with the requirements of the Reliability Standards and
EAI LBA’s performance pursuant to this Agreement is related to Customer’s
compliance, EAI LBA shall cooperate and provide reasonable support to
Customer in connection with such audit or investigation, as well as any mitigation
plans to the extent such mitigation plans are related to EAI LBA’s performance
pursuant to this Agreement.
3.2 LBA Responsibilities
EAI LBA agrees to perform all requirements that are required of an LBA by the
MISO First Revised Rate Schedule FERC No. 3, as amended from time to time.
EAI, under this Agreement, assumes no obligation of performing any services for
any functions on the Customer’s side of the Points of Interconnection with respect
to either the Customer Load or Customer Facility other than those functions
necessary to fulfill its duties as LBA.
3.3 Compliance with Reliability Standards
EAI shall comply with all applicable Reliability Standards and operate with Good
Utility Practice in performing LBA services under this Agreement. EAI shall
comply with any applicable directive of the Reliability Coordinator. EAI will
provide prompt oral notice to Customer, with a written confirmation on request of
the Customer, as promptly as practicable, of any such directive that materially
affects the performance of reliability responsibilities of EAI LBA or Customer
under this Agreement, provided that such notice is not a prerequisite to any action
by EAI LBA.
4. CUSTOMER OBLIGATIONS
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To the extent EAI LBA requires information from Customer that is necessary for
EAI LBA to comply with Reliability Standards as provided in this Agreement,
Customer shall be responsible for providing the EAI LBA with the status of all of
Customer’s applicable resources, generation, or transmission available for use
within the EAI LBA Area. A summary that includes, but is not limited to,
Customer’s responsibilities is set forth in Appendix C, which may be amended
from time to time, as necessary to address changes in NERC Reliability
To the extent MISO, NERC or FERC institutes an audit or investigation of EAI
LBA’s compliance with the requirements of the Reliability Standards insofar as it
relates to EAI LBA’s performance pursuant to this Agreement, Customer shall
cooperate and provide reasonable support to EAI LBA in connection with such
audit or investigation, as well as any mitigation plans to the extent such mitigation
plans are related to EAI LBA’s performance pursuant to this Agreement.
Customer shall comply with all operational instructions issued by MISO or by
EAI LBA: (i) in EAI LBA’s capacity as an LBA; and (ii) in accordance with the
directions of the Reliability Coordinator. Customer will cooperate and provide
reasonable support to EAI LBA to enable EAI LBA to perform its LBA functions
under this Agreement.
Except in fulfillment of its obligations in this Agreement, EAI LBA is not
obligated to act on behalf of the Balancing Authority, or on behalf of the
Customer in communicating information to the Balancing Authority.
Nothing contained in this Agreement prohibits Customer from engaging a third-
party to perform MDMA functions on its behalf.
4.2 Customer Load or Customer Facility
Customer will operate and maintain its facilities in accordance with Good Utility
Practice and consistent with the requirements imposed by FERC, NERC and
SERC Reliability Standards. Customer will inform EAI LBA as soon as
practicable of any system disturbance or other event involving Customer’s service
of the Customer Load or Customer Facility, which affects Customer’s
performance of Customer’s reliability responsibilities under this Agreement.
4.3.1 Direct Assignment Costs
EAI LBA will directly bill and Customer will pay actual costs incurred by
the EAI LBA, as defined in this section 4.3.1 and section 4.3.2 and which
are appropriately assigned to Customer. Customer has the right to request
documentation from EAI LBA related to any cost which EAI LBA seeks
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to directly assign to and collect from Customer and EAI LBA shall
comply with Customer’s reasonable requests.
All costs, as detailed in subsections below, as incurred by the EAI LBA
for the provision of the terms of this Agreement shall be borne by
126.96.36.199 Physical, Logical, and/or Transactional Configuration or
Equipment and labor costs incurred by the EAI LBA in support of the
reliable implementation of any physical, logical, transactional including
third party transactions, configuration, or operational changes directly
associated with Customer Facility shall be borne by Customer.
188.8.131.52 Metering and Operating Data Costs
Customer shall [pay for OR own] all RQMS dedicated solely to the EAI
LBA metering. All costs associated with owning, operating, testing, and
maintaining RQMS and providing operating data to the EAI LBA shall be
the responsibility of the Customer. Specifications of such facilities will be
detailed in Appendix D.
184.108.40.206 Telecommunications Equipment Installation, Ownership, and
[The EAI LBA OR Customer] will install, own, and maintain the Remote
Terminal Unit (“RTU”) and associated telecommunications equipment at
Customer’s Facilities. Customer shall install or cause to be installed and
pay for any phone lines and telecommunications circuits necessary for
transmission of the Customer metering data to the EAI LBA control
center, per the EAI LBA specifications and standards described in
Appendix A. Through such RTU, Customer shall provide the EAI LBA
with real-time operating data agreed to by the Parties and required by EAI
to perform its role as the EAI LBA. Except as provided in this
Agreement, the EAI LBA shall have no responsibility to provide such data
to a third-party.
220.127.116.11 Telecommunications Path Sharing Costs
In the event that the Customer elects to have the EAI LBA provide the
telecommunications path to transfer real-time operating data from the
Customer’s Facilities to the EAI LBA control center, either through EAI’s
existing telecommunications infrastructure or by other means, the
Customer may enter into a separate Telecommunications Sharing
Agreement with EAI LBA. The Telecommunications Sharing Agreement
shall set forth all of the terms and conditions for providing
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telecommunication sharing to the Customer and shall set forth all charges
applicable to the Customer for such sharing.
Notwithstanding anything to the contrary in this Agreement, any Dynamic
Transfer or telemetry communications between Customer and Balancing
Authority shall occur directly between such Customer and Balancing
4.3.2 Schedule 24 Costs
EAI LBA may seek to recover costs that are properly billed and recovered
pursuant to Schedule 24 or such other rate schedule of the Midwest ISO
Tariff provided those costs are not directly assigned to any Customer.
4.4 Customer Output
4.4.1 Interchange Schedules
EAI LBA is not responsible for any of Customer’s interchange schedules.
4.4.2 Dispatch Signals
If applicable, Customer shall receive dispatch signals from MISO for
energy and Ancillary Service deployment. Except as provided in this
Agreement, EAI LBA assumes no responsibility for transmitting dispatch
signals from MISO to Customer. EAI LBA requires visibility of
Customer dispatch signals as part of the LBA function in the MISO BA.
4.5 Notification of Customer Operator
Customer will provide the EAI LBA with written notification of the entity
responsible for the offering and management (Generation Dispatcher) of real-time
Customer Facility operations to the extent Customer owns or operates a Customer
4.6 Notice of Changes
Within five (5) Business Days of providing notification to MISO of any change
with regard to the physical, logical, and/or transactional configuration of
Customer Facilities or its operations, Customer shall provide the EAI LBA with
written notification of such change. Changes to the physical, logical, and/or
transactional configuration of Customer Facilities or its operations shall include,
but are not limited to, metering points, dispatch, settlement locations (CP Nodes),,
ratings, or modeling. The EAI LBA shall use best efforts to implement and make
such changes effective on a timeline consistent with the implementation timeline
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Nothing within this Section 4.6 is intended to supersede any otherwise applicable
Customer requirement to notify MISO of changes to the physical, logical, and/or
transactional configuration of Customer Facilities or its operations.
4.7 Dynamic Transfers
For energy export transactions outside of the MISO Energy Market that require
Dynamic Transfers, the EAI LBA shall use best efforts to implement the
requested dynamic transfer within one hundred and eighty (180) calendar days of
receiving notice from Customer, providing the dynamic transfer can be
implemented in accordance with applicable tariffs and Reliability Standards.
Parties will work in good faith to develop processes and procedures to implement
export transactions with all affected entities. Any true-up of energy settlement
between Customer and its customer shall be handled by separate agreement.
For the avoidance of doubt, Customer shall retain and provide EAI LBA with
such data or information as specified in any facilities study associated with the
Dynamic Transfer or as specified in writing by EAI LBA to Customer from time
to time, that EAI LBA may reasonably require in order to obtain actual
interchange data from Customer that EAI LBA is to report to MISO in order to
satisfy the EAI LBA requirements.
4.8 Residual Load
The Midwest ISO calculates Residual Load hourly for each LBA pursuant to the terms of
the MISO Tariff and BPM. The EAI LBA is not responsible for the costs of Residual
Load assigned by Midwest ISO. The EAI LBA will allocate its Residual Load
assignment for the EAI LBA Area to each Market Participant of the EAI LBA Area
based on each Market Participant’s pro-rata, on an hourly energy basis, share of the
Residual Load. EAI LBA will allocate Residual Load to Customer’s Market Participant
pursuant the process described in Appendix E. Market Participants will account for their
pro-rata share of Residual Load through making a Residual Load Adjustment, as directed
by the EAI LBA. The process for making a Residual Load Adjustment is described in
Appendix E. Nothing in this section 4.8 or Appendix E precludes the EAI LBA from
allocating residual load to Market Participants with pseudo-tie out of EAI LBA.
Each Market Participant is expected to correct any metering discrepancies before noon
OD-54 for the S-55 settlement statement. The EAI LBA will utilize the S-55 settlement
and Residual Load Account report to perform Residual Load allocation. This does not
preclude Market Participants from making metering changes after the S-55 date up to
close of S-105 window as the MISO rules allow. Any metering change during this
period, which cause residual load, will be directly assessed a financial charge to cover
additional residual load.
4.9 NERC Regulation and Compliance
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Except and only to the extent that EAI LBA has expressly assumed the
obligations of complying with Reliability Standards pursuant to this Agreement,
EAI LBA undertakes no responsibility for complying with the Reliability
Standards (i) applicable to the functions for which Customer is a Registered
Entity; and (ii) for the Customer Facility, regardless of whether or not Customer
has registered as a Registered Entity for such reliability functions.
5. OPERATIONAL COORDINATION
5.1 Local Balancing Authority Obligations
EAI LBA shall perform its duties consistent with Good Utility Practice. EAI
LBA may, consistent with the procedures described in Section 4.9 of the
Balancing Authority Agreement and Good Utility Practice, take whatever actions
or inactions with regard to EAI LBA Area that it deems reasonably necessary
during an Emergency in order to: (i) preserve public health, safety, and welfare;
(ii) preserve the reliability of EAI LBA Area; and (iii) expedite the restoration of
electric service within the EAI LBA Area or adjacent LBA Areas.
5.2 Operational Directives
EAI LBA is responsible for operating its LBA Area in a secure and reliable
manner. Customer shall comply with the directives of EAI LBA. EAI LBA may
relay reliability directives from the MISO or other appropriate entities.
5.3 Emergency Notification
EAI LBA shall provide Customer with prompt notification of an Emergency that
may reasonably be expected to affect Customer’s operation of a Customer
Facility, to the extent EAI LBA is aware of the Emergency. Customer shall
provide EAI LBA with prompt notification of an Emergency that may reasonably
be expected to affect EAI LBA or adjacent transmission systems, to the extent
Customer is aware of the Emergency. Such notification shall describe the
Emergency, the extent of the damage or deficiency if known, its anticipated
duration, and the corrective action taken and/or to be taken.
5.4 Disturbances and Asset Protection
Customer retains responsibility for protection of any of its Critical Cyber Assets,
as defined in the effective Reliability Standard as approved by FERC. Customer
shall identify to EAI LBA any such Critical Cyber Assets that may be reasonably
expected to affect EAI LBA before the Effective Date of this Agreement, using
the effective Reliability Standard criteria. To the extent any Customer Facilities
that may be reasonably expected to affect EAI LBA are designated Critical Cyber
Assets after the Effective Date of this Agreement and pursuant to a final
determination that is no longer subject to regulatory or judicial review, Customer
shall identify such assets to EAI LBA as soon as practicable after such
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5.5.1 Seven (7) Day Forecast
Customer shall provide to EAI LBA the same forecasts of output and
Customer Load that Customer provides to MISO and on the same basis as
provided to MISO.
5.5.2 Next Operating Day
The EAI LBA forecast may rely on the MISO-published Next-Day
Security Analysis Report (as defined in the MISO Business Practice
Manual) to confirm Customer’s projected operations; provided, however,
that Customer shall notify the EAI LBA of any change to the operational
plan submitted to MISO that may affect the next operating day.
5.5.3 Planned Maintenance
At such time as Customer provides any planned resource maintenance
schedule to MISO, Customer shall submit a copy of such schedule, or
change in schedule, to the EAI LBA.
5.6 Hourly Energy Checkout
To the extent applicable, on or before 0030 hours Central Time (daylight
saving or standard time, whichever is prevailing), Customer shall provide
to the EAI LBA Customer’s actual hourly Customer Load and energy
output from RQMS for the previous operating day.
Subject to Section 6.2 of this Agreement, Customer and the EAI LBA
shall agree on the hourly energy input/output from RQMS of a Customer
Facility. Pending the resolution of any discrepancy or dispute, for the
purposes of this Agreement the EAI LBA record of hourly energy
input/output shall be the value utilized by the Parties.
5.6.3 MISO Market Settlement
If the MISO Market Settlement differs from the hourly energy
input/output from the RQMS of a Customer Facility, EAI LBA shall
notify Customer of such discrepancy and the Parties shall agree on the
corrected data and timeframe for Customer to submit the corrected data, if
applicable, to MISO in accordance with the Midwest ISO Tariff.
5.7 Development of Processes and Procedures
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The Parties agree to jointly develop processes and procedures to effect the terms
of this Agreement as applicable.
5.8 Inspection and Auditing Procedures
5.8.1 Customer shall provide EAI LBA with access to its books and records and
facilities as necessary to allow EAI LBA to determine compliance with this
Agreement. Such access shall be upon reasonable notice, at reasonable times and
under reasonable conditions.
5.8.2 EAI LBA shall provide Customer with access to its books and records and
facilities as necessary to allow the Customer to determine compliance with this
Agreement. Such access shall be upon reasonable notice, at reasonable times and
under reasonable conditions.
6. METERING, COMMUNICATIONS, AND OPERATING DATA
[The EAI LBA OR Customer] shall install (or cause to be installed), own,
operate, test, and maintain RQMS and the Revenue Meters to be used at
each Customer Facility, Customer load, or both. Instrument transformer
test results shall be provided by Customer to EAI LBA. Changes in
RQMS specifications shall be submitted to EAI LBA for approval, which
approval shall not be unreasonably withheld.
6.1.2 Static data
Customer shall maintain a current one-line diagram of any Customer
Facility, including interconnection facilities to the transmission system
and metering equipment locations, and shall provide the EAI LBA with a
copy of the current one-line diagram.
6.1.3 Meter Testing
The EAI LBA may test or require the testing of the Revenue Meter every
twelve (12) months. The accuracy of registration for the revenue meter
shall be maintained to a range of 99.5% to 100.5%. At the reasonable
request of either Party, special meter tests of RQMS shall be made (a
“Special Meter Test”). If any Special Meter Test discloses the metering
device to be registering within acceptable limits of accuracy as specified
hereinafter, then the Party who requested the Special Meter Test shall bear
the expense thereof. Otherwise, the expense of such test shall be borne by
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Representatives of the Parties shall be afforded an opportunity to be
present at all routine meter tests or Special Meter Tests, and upon
occasions when any readings for purposes of settlements hereunder are
taken. The EAI LBA shall provide Customer with at least ten (10)
Business Days written notice prior to any testing and shall permit
Customer the opportunity to be present during such testing.
6.1.4 Access to Equipment
EAI LBA shall be permitted reasonable access to RQMS in accordance
with Customer access requirements and other requirements.
6.2 RQMS Problems
In the event the RQMS data stream to EAI LBA is interrupted, Customer shall act
immediately to resolve the interruption or effect repairs.
In the event RQMS is not functioning and EAI LBA has an alternate data source
representative of the Customer values, EAI LBA and Customer shall use EAI
LBA alternate data, if such data is reasonably acceptable to Customer and
identified in Appendix B to this Agreement, or another source of data acceptable
to both Parties, as the record of hourly energy output of Customer Facility or
input onto Customer Load facilities. Absent agreement on an alternate data
source, EAI LBA will use reasonable judgment to estimate substitute values in
order to satisfy its LBA responsibilities to MISO. Notwithstanding the foregoing,
Customer and EAI LBA shall take good faith steps to agree upon substitute values
that would replace any estimated values provided to MISO by EAI LBA. If
Customer and EAI LBA are unable to agree upon substituted values within seven
(7) calendar days, Customer may pursue the Dispute provisions of this Agreement
set forth in Section 8.
6.3 Metering Inaccuracy
A discrepancy outside the range of ninety-nine and five tenths percent (99.5%) to
one hundred and five tenths percent 100.5% is to be considered a metering
inaccuracy. Corrections consistent with the EAI LBA’s alternate data source(s)
will take effect back to the known start of the metering inaccuracy or one hundred
and five (105) calendar days, whichever is less.
6.3.1 Corrections to Metering Inaccuracies
Transactions to correct metering inaccuracies shall be trued-up and settled
as energy transactions in accordance with the Midwest ISO Tariff and the
MISO Business Practice Manuals unless otherwise approved by FERC.
6.4 Communications Equipment
6.4.1 Remote Terminal Unit
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Modifications to the RTU(s) and associated communications equipment
may be proposed by either Party and may be implemented with prior
written approval of the non-proposing Party, which approval shall not be
Detailed design drawings shall be submitted by the Party proposing the
modifications no later than ninety (90) calendar days prior to the
modification. The proposed modifications shall be reviewed and approved
or rejected within thirty (30) calendar days. Unless otherwise agreed, the
modifications are to be made by Customer. As-built drawings shall be
provided within one hundred and twenty (120) calendar days of
completing the modifications. Through the RTU(s) and associated
communications equipment, Customer shall provide EAI LBA with real-
time operating and accumulator data as specified by the LBA and as
currently identified in Appendix B.
6.4.2 Access to Equipment
EAI LBA shall be permitted reasonable access to the RTU(s) and
associated communications equipment in accordance with Customer
access requirements and other requirements.
On or before the tenth (10th) calendar day of each quarter, EAI LBA will forward to
Customer a statement setting forth the expenses incurred on Customer’s behalf and which
are properly directly assigned to Customer as provided in Section 4.3.1 of this Agreement
for the previous calendar quarter. On or before the thirtieth (30th) calendar day after the
date of the invoice, Customer shall remit payment in full to EAI LBA. All invoices shall
be paid in full unless there is a dispute as to such bills. In the event of a billing dispute,
Customer shall (i) continue to make all payments not in dispute, and (ii) pay into an
independent escrow account the portion of the invoice in dispute, pending resolution of
such dispute. Any such billing disputes shall not be affected by the closing of the
settlement period as set forth in the MISO Tariff.
Subject to the provisions of Arkansas law, disputes arising out of or in connection with
this Agreement shall be resolved as follows:
In the event either Party has a dispute, or asserts a claim, that arises out of or in
connection with this Agreement, or its performance hereunder, such Party shall
provide the other Party with written notice of the dispute or claim (“Notice of
Dispute”). Such dispute or claim shall be referred to a designated senior
executive officer of each Party for resolution by mutual agreement of the
designated senior executive officers on an informal basis as promptly as
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practicable after receipt of the Notice of Dispute by the other Party. In the event
the designated senior executive officers of the Parties are unable to resolve the
claim or dispute through unassisted or assisted negotiations within sixty (60)
calendar days of the other Party’s receipt of the Notice of Dispute, such claim or
dispute may be submitted to FERC or a court of competent jurisdiction for
9. GENERAL PROVISIONS
Any notice, request, or demand between the Parties made in accordance with any
provision hereof, except as otherwise provided herein, may be given either orally
or in writing. Any notice, request, or demand given orally shall be confirmed in
writing, by mail addressed to the person listed below or to such person or persons
as may be designated from time to time by the Parties.
(a) Notice to EAI LBA shall be addressed to:
(b) Notice for real-time coordination:
(c) Notice to Customer shall be addressed to:
(d) Notice for real-time/operational issues
9.2 Agreement Execution
This Agreement may be executed in multiple counterparts, each as an original,
and shall be binding upon the successors and permitted assigns of the respective
9.3 Successors and Assigns; Assignment
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No rights of either Party hereunder shall be assigned by it without the prior
consent in writing of the other Party, which consent shall not be unreasonably
withheld. Neither Party, however, shall withhold its consent to any such
assignment if its rights hereunder will not be adversely affected thereby.
Notwithstanding the forgoing, no such consent shall be required for:
(a) Any assignment or transfer of this Agreement by Customer or the EAI LBA
to an Affiliate; or
(b) Any assignment of this Agreement by Customer as collateral security for
obligations under the financing documents entered into with such lenders,
provided, however, that any requisite regulatory authorization for such
assignment is granted prior to such assignment.
9.4 Performance under this Agreement
Except for the obligation to make any payments or to comply with Reliability
Standards under this Agreement, neither Party shall be considered to be in default
or breach of this Agreement or liable in damages or otherwise responsible to the
other Party for any delay in or failure to carry out any of its obligations under this
Agreement if, and only to the extent that, the Party is unable to perform or is
prevented from performing by an event of Force Majeure, as defined in section
9.5 of this Agreement.
A Party alleging non-performance under this Agreement shall provide written
notice of such of non-performance within seven (7) calendar days to the alleged
non-performing Party. The alleged non-performing Party then shall have seven
(7) calendar days (or some other time period agreed to by the Parties) to correct
the non-performance or to dispute the allegation of non-performance pursuant to
the provisions of Section 8 of this Agreement.
If a Party fails to correct the non-performance or fails to dispute the allegation of
non-performance or the Party is found to be a non-performing Party through the
dispute resolution provisions in Section 8 and fails to correct the non-performance
as provided above then the party shall be considered to be in default.
A Party may seek appropriate remedies in court, including, but not limited to,
specific performance and equitable relief, in the event of a default by the other
9.5 Force Majeure
The term “Force Majeure” means an event or circumstance that prevents one
Party from performing its obligations, which event or circumstance is not within
the reasonable control of, or the result of the negligence of, the claiming Party,
and which by the exercise of due diligence, or Good Utility Practice, the claiming
Party is unable to avoid, cause to be avoided, or overcome. If a Party is unable to
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perform actions under this Agreement due to the actions of an independent third
party (e.g. not a consultant or Affiliate of the Party), that shall be considered a
Force Majeure. Any Party rendered unable to fulfill any of its obligations by
reason of a Force Majeure shall give immediate notice of its inability to perform
to the other Party and shall exercise due diligence to remove such inability within
a reasonable time period.
In the event either Party fails to perform its obligations due to a Force Majeure, in
addition to the notice described in the prior paragraph, such Party shall provide
the other Party written notice that provides details of the event of Force Majeure,
identifies the obligations it cannot perform, and such other information the other
Party may reasonably request within ten (10) Business Days of the event of Force
9.6 Books and Records
The Parties shall keep and maintain books and records of actions taken to comply
with the provisions of this Agreement and make such books and records available
in response to any discrepancy or disputes. Such books and records shall be
maintained for a period of no less than five (5) years. In the event either Party is
subject to a NERC audit, the other Party shall cooperate and supply books and
records as may be reasonably requested.
9.7 Limitation of Liability
For purposes of Sections 9.7 and 9.8 of this Agreement, the term
“Representatives” shall mean, with respect to a Party or any Affiliate of such
Party, the officers, shareholders, directors, agents, contractors, members and
EAI LBA, its Affiliates, and Representatives, in acting in their role as the LBA,
shall not be liable, whether based on contract, indemnification, warranty, equity,
tort, strict liability, or otherwise, to Customer, its Affiliates, and Representatives
for damages including, without limitation, legal fees and litigation costs and
incidental, consequential, punitive, special, multiple, exemplary, or indirect
damages arising or resulting from any act or omission of EAI LBA, its Affiliates,
or their Representatives in any way associated with this Agreement including, but
not limited to, any act or omission of EAI LBA, its Affiliates, or their
Representatives that results in an interruption, deficiency, or imperfection of
service, or billing error, except in the case of gross negligence or intentional
wrongdoing of EAI LBA.
EAI LBA, its Affiliates, and their Representatives shall not be liable for damages
arising out of actions under this Agreement including, but not limited to, any act
or omission that results in an interruption, deficiency, or imperfection of service,
or billing error, occurring as a result of conditions or circumstances beyond the
control of EAI LBA, its Affiliates, and their Representatives or an electric system
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design common to the domestic electric utility industry or electric system
operation practices or conditions common to the domestic electric utility industry.
Without limiting the previous paragraph, EAI LBA, its Affiliates, and their
Representatives shall not be liable for acts performed or omissions made in
compliance with or based on attempts to comply with directives of the Reliability
Customer, its Affiliates and their Representatives, in taking any responsive action
to implement or comply with the terms of this Agreement or with the directives or
requirements of the EAI LBA or Reliability Coordinator, shall not be liable to
EAI LBA, its Affiliates, or their Representatives, whether based on contract,
indemnification, warranty, equity, tort, strict liability, or otherwise, for damages
including, without limitation, legal fees and litigation costs, incidental,
consequential, punitive, special, multiple, exemplary, or indirect damages arising
or resulting from any act or omission in any way associated with this Agreement
including, but not limited to, any act or omission of Customer, its Affiliates, or
their Representatives that results in an interruption, deficiency, or imperfection of
The limitations set forth in this Section 9.7 are subject to the provisions of
Arkansas law. In addition, the limitations set forth in this Section 9.7 do not and
shall not be construed to limit either Party's indemnification obligations in Section
9.8 of this Agreement for third-party claims and losses relating to bodily injury to,
or death of, any person, or damage to property.
Subject to the provisions of Arkansas law, Customer shall at all times indemnify,
defend, and save EAI LBA, its Affiliates, and their Representatives harmless from
any and all damages, losses, claims, including claims and actions relating to
injury to or death of any person or damage to property, demands, suits, recoveries,
costs and expenses, court costs, attorney fees, and all other obligations by or to
third parties arising out of or resulting from the performance of EAI LBA’s
services, undertakings or obligations under this Agreement on behalf of Customer
except to the extent due to the negligence or intentional wrongdoing of EAI LBA,
its Affiliates, or their Representatives.
9.9 Penalties and Liability
As LBA, EAI LBA is responsible for paying any monetary penalty imposed by
FERC, NERC, or SERC for violation of any of the BA Reliability Standards: (i)
applicable to EAI LBA; or (ii) applicable to or as a result of the inclusion of any
Customer Facility or Customer Load in EAI’s LBA Area pursuant to this
Agreement. EAI LBA shall provide Customer written notice of any such
monetary penalty imposed upon EAI LBA by FERC, NERC, or SERC.
Notwithstanding anything to the contrary in this Agreement, if Customer’s acts or
omissions are responsible in whole or in part, for EAI LBA’s failure to comply
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with such BA Reliability Standards, Customer shall be responsible for that portion
of the monetary penalty that is proportionate to Customer’s comparative
responsibility for the violation. Customer shall reimburse EAI LBA for
Customer’s share of any such monetary penalties within thirty (30) calendar days
of Customer’s receipt of written notice from EAI LBA of the monetary penalty
assigned to Customer, provided that, if Customer initiates dispute resolution
regarding EAI LBA’s assignment of such penalty, no payment shall be due until
thirty (30) days following resolution of such dispute resolution.
If FERC, NERC, or SERC imposes a monetary penalty on Customer for the
violation of an applicable Reliability Standard and the acts or omissions of EAI
are responsible for Customer’s failure to comply with such Reliability Standard,
EAI shall be responsible for that portion of the monetary penalty that is
proportionate to EAI LBA’s comparative responsibility for the violation. EAI
shall reimburse Customer for EAI LBA’s share of any such monetary penalties
within thirty (30) calendar days of EAI LBA’s receipt of written notice from
Customer of the monetary penalty assigned to EAI LBA, provided that, if EAI
LBA initiates dispute resolution regarding Customer’s assignment of such
penalty, no payment shall be due until thirty (30) days following resolution of
such dispute resolution.
Any waiver, or any delay short of the statutory period of limitation in asserting or
enforcing any right under this Agreement, or any waiver of a breach of any term
in this Agreement, will not be considered (1) a waiver of a further breach of the
same term, or (2) a waiver of a breach of any other term.
Each provision of this Agreement shall be interpreted, to the maximum extent
permitted by applicable law, such that each provision is valid and enforceable
under applicable law. Any invalid or unenforceable provision of this Agreement
shall be ineffective only to the extent of such invalidity or unenforceability and
shall be deemed reformed and modified to the limited extent required under
applicable law to permit its validity and enforcement in a manner most closely
representing the intention of the Parties as expressed herein. The invalidity or
unenforceability of any provision of this Agreement shall not affect the validity or
enforceability of any other provision of this Agreement.
This Agreement may be amended only by written documents signed by both
9.13 Entire Agreement
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This Agreement and its Appendices contain the entire understanding between the
Parties with respect to the EAI LBA function.
9.14 Third Party Beneficiaries
This Agreement confers no rights or remedies on any third party, other than the
Parties to this Agreement and their respective successors and permitted assigns.
9.15 Titles and Headings
Titles and headings are inserted in this Agreement for reference purposes only,
and must not be used to interpret this Agreement.
9.16 Governing Law
This Agreement shall be governed by the laws of the State of Arkansas as if
executed and to be wholly performed therein.
9.17 Prevailing Provisions
Customer remains subject to the provisions contained in this Agreement
notwithstanding any alternative contractual arrangements that exist between EAI
and Customer. To the extent that any provisions therein differ and/or contradict
any provisions in this Agreement, nothing therein modifies or otherwise limits the
duties applicable to Customer under this Agreement.
This Agreement shall become effective upon the later of the Effective Date or
acceptance by the FERC, and shall continue in effect while Customer is within the
EAI LBA Area. This Agreement, including the rates, terms and conditions,
charges and classifications of service hereunder shall be subject to the approval of
FERC under Section 205 of the Federal Power Act, and shall become effective on
the date as designated by FERC. EAI agrees to file this Agreement as an EAI rate
schedule or service agreement within a reasonable time period following
execution of this Agreement by the Parties. Nothing in this Agreement shall limit
the rights of the Parties under any applicable provision of the Federal Power Act
or FERC’s rules and regulations thereunder.
This Agreement may be terminated upon mutual agreement by the Parties.
Notwithstanding the foregoing, Customer or EAI LBA may terminate this
Agreement by providing written notice to the other Party no less than one (1) year
prior to the desired termination date. In the event EAI LBA provides Customer
with a termination notice, Customer will make reasonable efforts to transition into
another MISO LBA or to a Non-MISO BA prior to the termination notice date,
however, in no case will this Agreement terminate prior to such transition.
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9.20 Change in LBA Designation; Costs
Customer shall provide the EAI LBA written notification of its intent to transition
the Customer Facility(ies) or some portion of the Customer Facility into a
different MISO LBA or to a Non-MISO BA. Upon the EAI LBA’s receipt of
notification, the EAI LBA, Customer, and Customer’s new Local Balancing
Authority designee will set a transition date that permits all required entities to
comply with applicable regulatory and technical requirements as well as any
restrictions with respect to timing that may be imposed by MISO. The Parties
will make reasonable efforts to effectuate the change in Local Balancing
Authority designation within six (6) months, subject to any required NERC
certifications and timing related thereto.
Customer shall bear all EAI LBA costs associated with a change in the Local
Balancing Authority designation of Customer, unless EAI LBA has sought to
unilaterally terminate this Agreement in which case each Party shall bear its own
9.21 Survival of Indemnification
The provisions of this Agreement related to any indemnification obligation shall
survive the termination of this Agreement or the withdrawal of a Party to the full
extent necessary for their enforcement and the protection of the Party in whose
favor they run with regard to actions or inactions occurring prior to the effective
date of the termination or withdrawal, except that in the case of withdrawal of the
Customer, any action or claim against that Customer related to this Agreement
shall commence within three (3) years of the effective date of the withdrawal.
9.22 Material Modification of Duties
In the event of a material change in the duties imposed upon Balancing
Authorities by NERC, SERC, MISO, a regulatory authority, or similar entity that
directly affects the terms of this Agreement, the Parties agree to renegotiate such
terms contained herein as may be impacted by such change.
Personnel of EAI performing functions under this Agreement shall keep all
information received from Customer or other entities relating to its performance
under this Agreement confidential and shall not disclose such information to
Market Participants (including marketing personnel that are part of the same
company as EAI). EAI, its directors, officers, employees, contractors, and agents
shall adhere to the Standards of Conduct set forth as Appendix A to the Midwest
ISO TO Agreement with regard to all activities related to this Agreement.
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EAI LBA will not share any information provided by Customer pursuant to this
Agreement with any person that is considered a “Marketing Function Employee”
as that term is defined 18 C.F.R. § 358.3.
ENTERGY ARKANSAS, INC.
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1) Meters shall meet or exceed the latest versions of American National Standard Institute
(ANSI) C12.1 (Code for Electricity Metering), C12.10 (Physical Aspects of Watthour Meters -
Safety Standard), and C12.20 (Electricity Meters 0.2 and 0.5 accuracy class). Where differences
exist between requirements of C12.1, C12.10, and C12.20, the requirements of C12.20 shall
2) Current transformers used for metering shall meet or exceed an accuracy class of three
tenths of one percent (0.3%) and shall be of extended-range type. Equipment connected to the
current transformer shall not affect the accuracy of the current transformer by exceeding the
burden rating of the current transformer. Instrument transformers shall comply with the latest
version of the applicable ANSI Standards including C57.13-IEEE Standard Requirements for
Instrument Transformers, and C12.11-Instrument Transformers for Revenue Metering 10kV
through 350kV BIL. The manufacturer shall include accuracy and burden class information on
the nameplate of each device. Current transformers for Local Balancing Authority metering
shall be dedicated exclusively for the operation of this meter.
3) Voltage or potential transformers used for metering shall meet or exceed an accuracy
class of three tenths of one percent (0.3%). Equipment connected to the potential transformer
shall not affect the accuracy of the potential transformer by exceeding the burden rating of the
potential transformer. Instrument transformers shall comply with the latest version of the
applicable ANSI Standards including C57.13-IEEE Standard Requirements for Instrument
Transformers, C12.11-Instrument Transformers for Revenue Metering 10kV BIL through 350kV
BIL, and C93.1-Power Line Carrier Coupling Capacitors and Coupling Capacitor Voltage
Transformers (CCVT). The manufacturer shall include accuracy and burden class information
on the nameplate of each device.
4) If loss compensation is required, the Parties will mutually agree on the compensation
values to be programmed into the meters. The values registered and reported from the meters
shall be the compensated values.
Revenue Quality Metering Data (Instantaneous and Pulse Accumulator Telemetry)
Previous Delivered MWH
Previous Received MWH
Previous Delivered MVARH
Previous Received MVARH
Instantaneous +/- MW (4 Sec. Real time updates).
Instantaneous +/- MVAR (4 Sec. Real time updates).
Instantaneous +/- MVA (Based on Delivered Power).
Instantaneous +/- MVA (Based on Received Power).
Instantaneous +/- PF (Based on Delivered Power)
Instantaneous +/- PF (Based on Received Power).
Instantaneous Phase A VOLTS
Instantaneous Phase B VOLTS
Instantaneous Phase C VOLTS
Instantaneous Phase A AMPS
Instantaneous Phase B AMPS
Instantaneous Phase C AMPS
Changes to this data may occur depending on future RTU or meter availability; provided
that such changes are consistent with this Agreement.
Data to be Provided to EAI LBA
Customer Facility status, analog and accumulator data.
Customer must deliver data to EAI LBA as follows:
For real-time operations: (i) Customer must provide four (4) second data with
respect to Customer Facility’s that provide ancillary services; and (ii) Customer
must provide five (5) minute data with respect to units that provide energy for
dispatch and are not qualified to provide reserves.
Customer shall provide validated and integrated hourly data within two (2)
Business Days after the hourly data’s operating day.
MATRIX OF RESPONSIBILITIES
Administrative Matrix for Local Balancing Authority
Local Balancing Authority-Entergy Arkansas, Inc. (“EAI LBA”)
Reliability Coordinator/Transmission Provider-Midwest ISO (“MISO”)
Meter Data Management Agent-EAI
[The table below will be revised on a Customer-specific basis]
E/P/C and Cost for O&M O&M Data
Ownership Installation Costs
Revenue Meter Customer Customer Customer Customer EAI Meter Data to MISO
Revenue Quality Meter Customer Customer Customer Customer N/A
System CT, PT,
RTU and Customer Customer Customer Customer Telemeter by dedicated
Telecommunications circuits to EAI (reactive
power, status, analog and
If applicable, SCADA Customer Customer Customer Customer SCADA PI system link to
PI System, fiber optic EAI frame relay protocol
cable, frame relay box
OWNERSHIP OF METERS
As contemplated in Section 6.1 of this Agreement, the ownership and responsibilities to operate,
test, and maintain the following RQMS, Revenue Meter, and associated equipment are as
Equipment Ownership CP Node Assignment
RESIDUAL LOAD ALLOCATION AND ADJUSTMENT PROCESSES
Section 4.8 of the Agreement provides that Residual Load assigned to the LBA Area (Assigned
RL) by MISO shall be (i) allocated to each Customer/Market Participant (“MP”) in the LBA
Area on a pro-rata basis, and, if applicable, (ii) recovered from each MP through an RL
Adjustment, as directed by the LBA.
Assigned RL Allocation Process:
1. No later than Close of Business Operating Day +56 (“COB+56”), the LBA shall
calculate, for each CPNode, including any virtual CPNodes, in the LBA Area, a CPNode
Compensated (adjusted) Meter Value (“CPCMV”) associated with the Assigned RL. The
sum of the CPCMV for all of the CPNodes in the LBA Area will have the effect of
bringing the Assigned RL to a value of zero.
2. The LBA shall calculate CPCMV as follows:
a. LBA will download the Residual Load Account Statement (RLAS) received from
MISO on or before OD +55. The RLAS includes, for each hour of the day: (1)
an hourly CPNode meter value (CPMV) for each CPNode of every MP included
in the LBA, and (2) the Assigned RL for the LBA as determined by MISO.
b. LBA will sum the absolute value of all CPMVs in the LBA for each hour of the
day, as posted in the RLAS, to determine a total sum of MWs injected
and withdrawn for each hour (Total I/W MW).
c. LBA will divide each CPMV, as posted in RLAS, by the Total I/W MW, for each
hour, to produce a ratio share for each CPNode (CPRS).
d. LBA will calculate a Residual Load adjustment for each CPNode (CPRLA) by
multiplying the Allocated RL by the CPRS.
e. LBA will calculate the CPCMV by adding the CPRLA to the CPMV.
f. LBA will forward all CPCMVs to the MDMA for each CPNode in the LBA Area
on or before COB OD +56.
RL Adjustment Process:
1. On or before COB OD +56, the LBA will forward to the MP the CPCMV for each
affected CPNode. CPNodes that have '0' or non-compensated values will not have a
2. Each MP shall require its MDMA to submit to MISO the CPCMV for each affected
CPNode by noon OD+104 to ensure inclusion in MISO’s s-105 Settlement Statement.
3. The LBA will determine whether the MP (or its MDMA) timely submitted the CPCMV
to MISO for inclusion in MISO’s s-105 Settlement Statement by reviewing the
MISO Residual Load Account Statement produced after the s-105 date.
4. Any CPNodes that have values that do not match the CPCMV as allocated by the LBA,
or if the CPCMV is not reflected in MISO’s s-105 Settlement Statement,, then the LBA
will invoice the MP owning the affected CPNode an amount reflecting the economic
value of the CPRLA. The economic value will be calculated based on the following
calculation: (CPCMV * LMP @ CPNode for residual load adjustment).