UNITED STATES OF AMERICA
BEFORE THE
FEDERAL ENERGY REGULATORY COMMISSION

California Independent	Docket Nos. EC96-19-014
System Operator	and ER96-1663-015
Corporation

AMENDMENT NO. 1
ACCEPTED FOR FILING
AS OF 
MARCH 27, 1998

AS MODIFIED TO COMPLY WITH THE FERC ORDER ISSUED MARCH 27, 1998

Allocation of Voltage Support and Black Start Costs
The ISO Tariff allocation of the cost of Voltage Support and Black Start services under ISO contracts conflicts with the ISO Protocols and the software assumptions.  Sections 2.5.28.5 and 2.5.28.6 of the ISO Tariff allocate the costs of these services to Scheduling Coordinators based on total “scheduled” Demand, while the ISO’s software allocates them based on total “metered” Demand.  The proposed amendment conforms Sections 2.5.28.5 and 2.5.28.6 of the ISO Tariff, as well as sections G 3.8 and G 3.16 of Appendix G, Voltage Support and Black Start Charges Computation, to the Settlement and Billing Protocol (now Appendix L to the ISO Tariff), to the system design by allocating these charges based on metered Demand.  This modification thus ensures the more appropriate allocation of the costs of Voltage Support and Black Start services based on the actual Demand for these services.
Accordingly, Sections 2.5.28.5 and 2.5.28.6 of the ISO Tariff and Appendix G to the Settlement and Billing Protocol are revised as follows.
Section 2.5.28.5  Voltage Support
The definition of QChargeVSjt is revised to read as follows:
QChargeVSjt = charging quantity for Voltage Support for Scheduling Coordinator j for Settlement Period t equal to the total metered Demand scheduled (including exports to neighboring Control Areas) by Scheduling Coordinator j for Settlement Period t .
Settlement and Billing Protocol Appendix G
In Appendix G to the Settlement and Billing Protocol, section G 3.8 is revised to read as follows:
G 3.8	QChargeVSjt 	(MWh)
The charging quantity for Voltage Support for Scheduling Coordinator j for Trading Interval t equal to the total metered Demand (including exports to neighboring Control Areas) for Scheduling Coordinator j for Trading Interval t.

Accordingly, footnote 1 to section G 3.8 referring to the ISO’s intention to make a section 205 tariff change to implement this amendment is deleted in its entirety:
.
Section 2.5.28.6  Black Start Capability
The definition of QChargeBlackstart jt  in Section 2.5.28.6 of the ISO Tariff is revised to read as follows:
QChargeBlackstartjt = charging quantity for Black Start for Participating Generator Scheduling Coordinator j for Settlement Period t equal to the total metered Demand scheduled (excluding exports to neighboring Control Areas) by Participating Generator Scheduling Coordinator j for Settlement Period t .
Settlement and Billing Protocol Appendix G
In Appendix G to the Settlement and Billing Protocol, section G 3.16 is revised to read as follows:
G 3.16	QChargeBlackstartjt	(MW)
The charging quantity for Black Start for Scheduling Coordinator j for Trading Interval t equal to the total  metered Demand (excluding exports to neighboring Control Areas) of Scheduling Coordinator j for Trading Interval t .
Accordingly, footnote 2 to section G 3.16 referring to the ISO’s intention to make a section 205 tariff change to implement this amendment is deleted in its entirety:

Disbursement of Wheeling Revenues
Appendix F, Wheeling Access Charges Computation, to the Settlement and Billing Protocol was written to disburse Wheeling Access Charges to Participating TOs based on each Participating TO’s percentage of ownership/firm entitlements to transmission capacity at delivery points.  In contrast to this, ISO Tariff Section 7.1.4.3 disburses Wheeling Access Charges based on the ratio of each Participating TO’s Transmission Revenue Requirement to the sum of all Participating TOs’ Transmission Revenue Requirements.  The proposed amendments will make Appendix F to the Settlement and Billing Protocol be consistent with ISO Tariff Section 7.1.4.3 and the intended system design.
	Accordingly, Appendix F to the Settlement and Billing Protocol is revised as follows:

F 2.2	ISO Payments to Transmission Owners for Wheeling 
Section F 2.2 is revised to read as follows:
The ISO will pay all  Wheeling revenues to Participating TOs on the basis of percentage ownership of Scheduling Points the ratio of each Participating TO’s Transmission Revenue Requirement The Trading Interval payment at Scheduling Point q from the ISO to Participating TO n will be calculated by the formula: (“TRR”) (less the TRR associated with Non-Converted Rights and Existing Rights) to the sum of all Participating TOs’ TRRs (less the TRRs associated with Non-Converted Rights and Existing Rights) as specified in Section 7.1.4.3 of the ISO Tariff.  The sum to be paid to Participating TOn for a Trading Interval is calculated as follows:

F 3  Meaning of terms in formulae
Section F 3 is revised to add a new section F 3.8:
F 3.8	TRRn
The Transmission Revenue Requirement of Participating TOn.
Imbalance Energy Charges
In the course of removing from the ISO Tariff provisions relating to staged features, as required by the Commission’s order dated October 30, 1997, an inadvertent change was made to the equation for the calculation of import deviations at Scheduling Points, which is used in the calculation of the Imbalance Energy Charge.  Specifically, the component for imports of Ancillary Services was removed from the import deviations formula, because the ISO will not import Ancillary Services from interties in the first stage of operations.  However, there is one exception to this, in that the ISO will import Ancillary Services Energy from interties to the extent that such Ancillary  Services are scheduled pursuant to an Existing Contract. Furthermore, the deleted Ancillary Services component included imports of Supplemental Energy, which will be part of the first stage of operations.  The proposed changes to Section 11.2.4.1 of the ISO Tariff and to Appendix D, Imbalance Energy Charge Computation, to the Settlement and Billing Protocol restore the Ancillary Services and the Supplemental Energy components that were deleted inadvertently with a clarification as to their proper application.
Accordingly, Section 11.2.4.1 of the ISO Tariff and Appendix D to the Settlement and Billing Protocol are revised as follows:

Section 11.2.4.1  Net Settlements for Imbalance Energy
Section 11.2.4.1 of the ISO Tariff is revised as follows:
The deviation between forward, scheduled and Real Time adjustments to Energy imports, adjusted for losses, for Scheduling Point q represented by the Scheduling Coordinator for the Settlement Period is calculated as follows:
ImpDevq = Is * GMMfq – [(Ia – Iadj) *GMMahq] +Ia/s
 Section 11.2.4.1 is also revised as follows:
Ia/s = Energy generated from Ancillary Services System Resources pursuant to Existing Contracts or Supplemental Energy from interties due to dispatch instruction
Settlement and Billing Protocol Appendix D
In Appendix D to the Settlement and Billing Protocol, sections D 2.1 and D 3.21 are revised as follows: 
D 2.1	Imbalance Energy Charges on Scheduling Coordinators
The deviation between forward scheduled and Real Time adjustments to Energy imports, adjusted for losses, for Scheduling Point q represented by Scheduling Coordinator j into zone x during Trading Interval t is calculated as follows:
ImpDevq = Is * GMMfq – [(Ia – Iadj) *GMMahq] + Ia/s
D 3.21  Ia/s --  MWh
The Energy generated from Ancillary Services System Resources pursuant to Existing Contracts or Supplemental Energy from interties due to ISO’s Dispatch instruction.