CROSS-SOUND CABLE COMPANY, LLC EXPLANATORY STATEMENT REGARDING COMPLIANCE WITH ATTACHMENT K REQUIREMENTS OF FERC ORDER NO. 890 September 14, 2007 Cross-Sound Cable Company, LLC (“CSC LLC”) hereby posts the following Explanatory Statement regarding CSC LLC’s compliance with the Attachment K posting requirements in the Federal Energy Regulatory Commission’s (“FERC”) July 27, 2007 Order Extending Compliance Date and Establishing Technical Conferences (120 FERC ¶ 61,103 (2007)), issued pursuant to FERC’s Order No. 890. 1 By order issued June 1, 2000, FERC granted authorization for CSC LLC to make sales on a negotiated basis of transmission capacity over the Cross Sound Cable (“CSC”). 2 In approving negotiated rate authority for the CSC, FERC required that “service [over the CSC] should be provided under the RTO’s tariff.” 3 Accordingly, CSC LLC operates and provides service over the CSC pursuant to the ISO New England Inc. (“ISO-NE”) Open Access Transmission Tariff (“OATT”) 4 and in coordination with ISO-NE and the New York Independent System Operator (“NYISO”). Specifically, service over the CSC is provided under Schedule 18 of the ISO-NE OATT, including the Schedule 18 Implementation Rule. 5 Schedule 18 of the ISO-NE OATT specifies that CSC LLC’s provision of service over the CSC does not impose an obligation to build transmission facilities on CSC LLC. 6 Furthermore, ISO-NE has operational control authority over the CSC pursuant to Section II.48.7(c) of the ISO-NE OATT. Since CSC LLC does not have: (a) an obligation to build; (b) captive customers and native load (network or otherwise); or (c) a stand-alone OATT; the transmission planning directives of Order No. 890 (including Attachment K) do not directly apply to CSC LLC. As a result, and in recognition of CSC LLC’s negotiated rate authority, CSC LLC intends to fulfill its Order No. 890 compliance obligation via a combination of: (a) ISO-NE’s compliance efforts and revisions
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Preventing Undue Discrimination and Preference in Transmission Service, Order No. 890, 72 FR 12266 (March 15, 2007), FERC Stats. & Regs. ¶ 31,241 (February 16, 2007), reh’g pending.
FERC first granted the negotiated rate authorization to TransÉnergie U.S. Ltd. (“TEUS”) in TransÉnergie U.S. Ltd., 91 FERC ¶ 61,230 (issued June 1, 2000). Subsequently, FERC authorized the substitution of CSC LLC for TEUS as to the rights and obligations under the June 1, 2000 order with respect to the CSC in TransÉnergie U.S. Ltd., 95 FERC ¶ 61,410 (issued June 15, 2001). On February 1, 2006, the Commission authorized the disposition of CSC LLC’s jurisdictional facilities through the transfer of all of the membership interests in CSC LLC to Babcock & Brown Infrastructure (see Cross-Sound Cable Company, et al., 114 FERC ¶ 61,096 (2006)). The sale transaction closed on February 27, 2006.
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TransÉnergie U.S. Ltd., 91 FERC ¶ 61,230 at page 11.
The ISO-NE OATT is Section II of ISO-NE’s Transmission, Markets and Services Tariff, FERC Electric Tariff No. 3.
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FERC approved Schedule 18 of the ISO-NE OATT in New England Power Pool, 99 FERC ¶ 61,338 (issued June 21, 2002). FERC approved the Schedule 18 Implementation Rule in Cross-Sound Cable Company, LLC, 109 FERC ¶ 61,223 (issued November 26, 2004).
CSC LLC’s lack of an obligation to build under Schedule 18 was specifically approved by FERC in New England Power Pool, 100 FERC ¶ 61,259 (issued September 6, 2002).
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Cross-Sound Cable Company, LLC Explanatory Statement Regarding Compliance with Attachment K Requirements of FERC Order 890 September 14, 2007
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to the ISO-NE OATT and other ISO-NE documents; and (b) CSC LLC’s revisions to the Cross Sound Cable Business Practices, Schedule 18 and the Schedule 18 Implementation Rule, all of which are available on the CSC OASIS website. With respect to the Attachment K requirements, CSC LLC notes that ISO-NE will post by September 14, 2007 a draft Attachment K for the region in compliance with Order No. 890. Section 9 of the draft ISO-NE Attachment K appropriately carries forward the planning provisions concerning Merchant Transmission Facilities under the ISO-NE OATT, as contained in Section II.48.7 of the present ISO-NE OATT. Furthermore, CSC LLC is an active participant in the ISO-NE Regional System Planning (“RSP”) process and fully supports its continuation and refinement as proposed in ISO-NE’s draft Attachment K.