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UNITED STATES OF AMERICA
BEFORE THE
FEDERAL ENERGY REGULATORY COMMISSION
Standards of Conduct for )
Transmission Providers
) Docket No. RM01-10-000
TSO4-______
Responsive Filing by the New
York Power Authority
In response to
Order 2004 (“the Order”), the New York Power Authority (“NYPA”), a
Transmission Provider that is an agency of the State of New York and
hence non-jurisdictional under the Federal Power Act (or a
“Non-Public Utility” in the language of the Order), files this
statement with the Federal Energy Regulatory Commission (“the
Commission”) showing that it is or will be by June 1, 2004 in full
conformance with the provisions of the Order. NYPA filed with the
Commission an Open Access Transmission Tariff (“OATT”) in compliance
with Order 888. NYPA also joined in the filing of an OATT for the
New York Independent System Operator (“NYISO OATT”) and all new
transmission service provided by NYPA is under the terms of the
NYISO OATT.
I.
Introduction
Upon commencement of the NYISO in
November 1999, NYPA turned over the day-to-day operational control
of its transmission facilities to the NYISO. The NYISO directs the
operation of, and coordinates the maintenance scheduling of NYPA
transmission facilities, including coordination with NYPA’s Energy
Control Center (“ECC”) which is part of NYPA’s Transmission Business
Unit (“TBU”). Information concerning the status of NYPA
transmission facilities is posted on the NYISO OASIS. The NYISO
produces a report of outage schedules of NYISO monitored facilities,
which is posted on OASIS as it becomes available. It contains a
day-to-day summary of all planned-outage schedules, updated at least
daily and usually more frequently, for at least the next thirty
days. This report includes facility identification, circuit
description, and outage type. Information concerning NYPA
transmission facilities is available to other NYPA business units
only when it is published on OASIS.
II.
Separation of Functions (Order
Paragraph 85)
NYPA
intends to conform with requirements for separation of functions
among its departments. NYPA has no affiliates and thus any such
separations are within the corporate framework of NYPA. NYPA’s
generation is under the control of the Generation Business Unit (“GBU”)
and its transmission is physically controlled by the TBU, in part
through the use of shared employees.
NYPA’s interface with its customers, principally insofar as NYPA is
functioning as a Load Serving Entity, is handled by the Marketing
and Economic Development Business Unit (“MED”). Interaction between
the TBU and the other business units is strictly circumscribed in
accordance with Order 889. NYPA has been and is in full compliance
with its obligations thereunder as a result of reciprocity
requirements.
As a result of
the Order, however, certain modifications in NYPA procedures will be
undertaken and will be fully operational by June 1, 2004.
Transmission
Business Unit Providing Services to the Marketing and Economic
Development Business Unit
TBU’s
Scheduling & Settlement (“S&S”) personnel submit load schedules for
all of NYPA’s customers to the NYISO. These schedules are
determined by external customers (e.g., municipal agencies
and out of state customers), MED, or by automated forecasting
software. S&S personnel sometimes make modifications of energy
schedules submitted to them by MED before they are submitted to the
NYISO. This is only done when the S&S personnel feel certain an
error has been made in the data submitted to it or when there has
been a dramatic change in conditions such as the weather. Since
NYPA provides bundled service to some but not all NYPA energy
customers, S&S will discontinue this practice. If there is an
apparent mistake in the load schedules or an unforeseen change in
circumstances, S&S personnel will notify MED at the same time and
with the same information that it will also supply to those external
entities whose scheduling is not determined by MED, i.e., for
whom NYPA does not serve as LSE.
In addition,
S&S personnel will give MED and the other external entities for whom
they submit schedules to the NYISO, an opportunity to submit
formulas or programs that can automatically modify schedules due to
changed circumstances. If such formulas or programs are made
available to S&S personnel they will be used, but if such formulas
or programs are not made available by some or all of the entities
those entities will be notified telephonically or electronically and
the S&S personnel will await specific instructions on how to
proceed.
Information
concerning NYPA’s policy on this matter will be posted on the OASIS.
Services
Performed by the Generation Business Unit for the Transmission
Business Unit
Section
358.4(a)(4) of the Commission’s Standards of Conduct for
Transmission Providers states:
Transmission Providers are permitted to share support employees and
field and maintenance employees with
their Marketing and Energy Affiliates.
At
all of NYPA’s generating units,
certain GBU personnel are assigned
to perform designated tasks in the associated substations and
switchyards, and at some facilities this includes switching
transmission facilities out of service. This is done under the
direction of the ECC, which in turn obtains approval of all
non-emergency transmission outages with the NYISO. If a
transmission facility is scheduled to be out of service, the NYISO
posts that on OASIS as soon as it obtains the information. If a
transmission facility suffers an unforeseen outage or is taken out
for emergency reasons, the NYISO is immediately informed and the
NYISO places this information on its OASIS when it obtains it.
The GBU
personnel who perform these switching functions on behalf of the TBU
are highly trained unionized personnel. These GBU personnel operate
equipment and perform “purely technical duties” like the “field
technicians” described in Paragraph 105 of the Order. These shared
workers do not control either the generating or transmission
facilities in question in the sense set forth in Paragraph 105
because under Normal operating conditions they do not have the
ability on their own initiative to “control … operations” or
“restrict or shut down the operation” of facilities.
Id.
The GBU shared
personnel would not ordinarily have any need to share with anyone
other than the ECC information about transmission switching
operations. However, this will be made the subject of training so
it will be explicit that there will be no passing of such
information in a manner prohibited by the Order.
Risk Management Employees
NYPA is in
conformance with the requirement of Order Paragraph 112 in that its
Risk Management employees are not part of its Generation,
Transmission or Marketing Business Units. They will be given
explicit instruction about not serving as conduits of improperly
shared information.
III.
Information on
OASIS
Paragraph 122
of the Order provides a list of elements to be included in OASIS.
Most of this information has already been posted on OASIS by NYPA
but NYPA will see to it that all information is posted no later than
next June 1. NYPA will take steps necessary to ensure conformance
with the seven-day posting requirement.
IV.
Written
Procedures
While NYPA has
written procedures for implementing Standards of Conduct, they will
be updated and no later than June 1 filed with the Commission and
posted on OASIS.
V.
Chief Compliance
Officer and Training Programs
NYPA is
presently exploring possibilities for a Chief Compliance Officer (“CCO”)
on Standards of Conduct who will not be a member of any of the three
business units among whom information may be improperly shared.
This individual will be responsible for undertaking periodic
training programs and for answering employee questions, as well as
conducting audits of compliance in coordination with Commission
staff. Information on the CCO will be posted on OASIS prior to June
1.
VI.
Information
Access
As indicated
above, employees engaged in the sale or marketing of energy at NYPA
do not have access to any transmission information other than that
available to other market participants. The requirements for
non-disclosure among departments are in essence NYPA’s current
policy – insuring that there is no improper sharing of information.
VII.
Other Issues
NYPA believes
that it is in conformance with all other sections of the Order.
Insofar as more instruction of NYPA personnel is required, it will
undertake it. It is difficult for NYPA to estimate the “cost of
compliance” but it is not anticipated that it will be substantial
since NYPA is already in substantial conformance and some changes to
assure further conformance are already underway. Additional
training to assure all pertinent employees are aware of their
responsibilities to maintain the Standards of Conduct will be the
primary additional cost for NYPA.
VIII.
Conclusion
As set forth
above, NYPA is or will be by June 1 in full conformance with all
aspects of Order 2004 on
Standards of Conduct.
Dated: February 6, 2004
White Plains, N.Y.
Respectfully submitted,
New York Power Authority
David E. Blabey
Executive Vice President, Secretary and General Counsel
/s/
By:_____________________
Edgar K. Byham
Principal Attorney
New York Power Authority
123 Main Street
White Plains, N.Y. 10601-3170
(914) 390-8006
Kim.Byham@NYPA.gov
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