Available Transfer Capability (ATC) ALGORITHMS

Mathematical Algorithms for Calculation of Firm and Non-Firm ATC

The ATC Algorithms presented here are a representation of the algorithms used to
calculate OASIS posted path’s Firm and Non-Firm ATC.

Terms and definitions in this document are consistent with those in the NERC Standard
MOD-029-1a.

Acronyms Used in Equations

ATC = Available Transfer Capability

CBM = Capacity Benefit Margin

ETC = Existing Transmission Commitments

GF = Grandfathered Rights

NITS = Network Integration Transmission Service

NL = Native Load Transmission Service

OS = Other Service for Transmission

PTP = Point-To-Point Transmission Service

ROR = Rollover Rights to Transmission Service

TRM = Transmission Reliability Margin

TSR = Transmission Service Request

TTC = Total Transfer Capability

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Algorithms and Definitions

 Available Transfer Capability (ATC): The amount of remaining MW of transfer

capability on the Transmission Provider’s transmission network over and above the
committed uses.

 Firm ATC: The following algorithm will be used for ATC Firm (ATCF)
ATCF = TTC – ETCF – CBM – TRM + PostbacksF

Where:

• ATCF is the firm Available Transfer Capability for the ATC Path for that
period.

• TTC is the Total Transfer Capability of the ATC Path for that period.

• ETCF is the sum of existing firm commitments for the ATC Path during that
period.

• CBM is the Capacity Benefit Margin for the ATC Path during that period.

• TRM is the Transmission Reliability Margin for the ATC Path during that
period.

• PostbacksF are changes to firm Available Transfer Capability due to a

change in the use of Transmission Service for that period, as defined in
Business Practices.

Note: Counterflows, of either Firm or Non-Firm schedules, are not used to adjust
Firm ATC due to uncertainty inherent with the submitted schedules.

 Non-Firm ATC: The following algorithm will be used for ATC Non-Firm (ATCNF)

ATCNF = TTC – ETCF – ETCNF– CBMS – TRMU + PostbacksNF + counterflowsNF

Where:

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 • ATCNF is the non-firm Available Transfer Capability for the ATC Path for
that period.

• TTC is the Total Transfer Capability of the ATC Path for that period.

• ETCF is the sum of existing firm commitments for the ATC Path during that
period.

• ETCNF is the sum of existing non-firm commitments for the ATC Path
during that period.

• CBMS is the Capacity Benefit Margin for the ATC Path that has been
scheduled during that period.

• TRMU is the Transmission Reliability Margin for the ATC Path that has not
been released for sale (unreleased) as non-firm capacity by the
Transmission Service Provider during that period.

• PostbacksNF are changes to non-firm Available Transfer Capability due to

a change in the use of Transmission Service for that period, as defined in
Business Practices.

• CounterflowsNF are adjustments to non-firm Available Transfer Capability

as determined by firm and non-firm schedules, in the Scheduling and
Operating Horizons, submitted via e-Tags in the opposite direction on the
ATC Path for that period.

 ATC Horizons:
• Scheduling Horizon: The real-time (same day or next-hour) period.

• Operating Horizon: The day-ahead or preschedule period as defined in the

Western Electricity Coordinating Council (WECC) Preschedule Calendar.

• Planning Horizon: The future period beyond the Operating Horizon.

 Capacity Benefit Margin (CBM): The amount of transmission transfer capability

preserved by the transmission provider for Load-Serving Entities (LSEs), whose
loads are located on that Transmission Provider’s system, to enable access by the
LSEs to generation from interconnected systems to meet generation reliability
requirements. Preservation of CBM for an LSE allows that entity to reduce its

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 installed generating capacity below that which may otherwise have been necessary
without interconnections to meet its generation reliability requirements. The
transmission transfer capability preserved as CBM is intended to be used by the
LSE only in times of emergency generation deficiencies.

 Counterflows: Adjustments to Available Transfer Capability, firm or non-firm, as

determined by schedules submitted via e-Tags in the opposite direction on the ATC
Path for that period. Firm counterflows utilize Firm transmission and have load and
generation within the Balancing Authority Area.

 Existing Transmission Commitments Firm (ETCF): The following algorithm will

be used when calculating Firm ETC (ETCF) where committed uses of a
Transmission Provider’s Transmission System are impacting the amount of
remaining ATC.

ETCF = NLF + NITSF + GFF + PTPF + RORF + OSF

Where:

• NLF is the firm capacity set aside to serve peak Native Load forecast
commitments for the time period being calculated, to include losses, and
Native Load growth, not otherwise included in Transmission Reliability Margin
or Capacity Benefit Margin.

• NITSF is the firm capacity reserved for Network Integration Transmission

Service serving Load, to include losses, and Load growth, not otherwise
included in Transmission Reliability Margin or Capacity Benefit Margin.

• GFF is the firm capacity set aside for grandfathered Transmission Service and
contracts for energy and/or Transmission Service, where executed prior to the
effective date of a Transmission Service Provider’s Open Access
Transmission Tariff or “safe harbor tariff.”

• PTPF is the firm capacity reserved for confirmed Point-to-Point Transmission

Service.

• RORF is the firm capacity reserved for Roll-over rights for contracts granting
Transmission Customers the right of first refusal to take or continue to take
Transmission Service when the Transmission Customer’s Transmission
Service contract expires or is eligible for renewal.

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 • OSF is the firm capacity reserved for any other service(s), contract(s), or
agreement(s) not specified above using Firm Transmission Service as
specified in the ATCID.

 Existing Transmission Commitments Non-Firm (ETCNF): The following algorithm

will be used for Non-Firm Existing Transmission Commitments (ETCNF) for all time
horizons for an ATC Path the Transmission Service Provider.

ETCNF = NITSNF + GFNF + PTPNF + OSNF

Where:

• NITSNF is the non-firm capacity set aside for Network Integration

Transmission Service serving Load (i.e., secondary service), to include
losses, and load growth not otherwise included in Transmission Reliability
Margin or Capacity Benefit Margin.

• GFNF is the non-firm capacity set aside for grandfathered Transmission

Service and contracts for energy and/or Transmission Service, where
executed prior to the effective date of a Transmission Service Provider’s
Open Access Transmission Tariff or “safe harbor tariff.”

• PTPNF is non-firm capacity reserved for confirmed Point-to-Point

Transmission Service.

• OSNF is the non-firm capacity reserved for any other service(s), contract(s), or
agreement(s) not specified above using non-firm transmission service as
specified in the ATCID.

 ATC Calculations (Initializes) Frequency: In general, the ATC formula calculation

timing is set hourly and is triggered by a CONFIRMED TSR or IMPLEMENTED e-
Tag. A Daily Initialize (calculation) runs daily for Operating Horizon ATC Formula
Set-up. An Hourly Initialize (calculation) runs hourly for the Scheduling Horizon ATC
Formula Set-up.

 ATCNF Equation (in Scheduling and Operating Horizon) Postbacks: A

component in the ATC calculation tied to creating additional ATC when transmission
capacity from a firm TSR:

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 • has not been scheduled on

• has been Annulled

• has been Redirected Non-Firm to a different path

• has been Relinquished

• has been Recalled

• has another TSR status change

The transmission capacity will add to the ATC calculation when the status change is
CONFIRMED.

 Total Transfer Capability (TTC): The amount of electric power that can be moved
or transferred reliably from one area to another area of the interconnected
transmission systems by way of all transmission lines (or paths) between those
areas under specified system conditions.

 Transmission Service Request (TSR): A request for transmission service

submitted pursuant to the Transmission Provider’s Open Access Transmission Tariff

Impacts to ATC Formulas in ATC Horizons

ATC calculations are run based on the Open Access Transmission Inc. (OATi) ATC
Formula program settings for each of the time horizons. The three timing horizons used
to implement the ATC Formula selected settings’ impacts are described below:

Scheduling Horizon (Real-Time/Present Day): ATC calculates hourly after the

Daily Initialize calculation runs at noon and goes from the current hour plus 8
hours. In addition, an Hourly Initialize runs every hour between the top of the hour
and 10 minutes, extending or sliding ATC out one hour at a time during real time.
Recalculations of ATC are also triggered whenever new e-Tags and new
CONFIRMED Transmission Service Requests are received and impact Firm and
Non-Firm ATC as appropriate. When the Hourly Initialize occurs, the following ATC
calculations are performed:

o Firm ATC is calculated to include Postbacks but not counterflows

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 o Non-Firm ATC (ATCNF) is calculated to include :

 Postbacks which include any Unscheduled/Untagged Firm

 Unscheduled/Untagged Capacity Benefit Margin (CBM) [The NV

Energy (NVE) Companies, NEVP and SPPC, do not currently have
any CBM set asides].

 Counterflow Capacity made up of Scheduled/Tagged/Committed

Firm and Scheduled/Tagged/Committed Non-Firm in the opposite
direction creating Non-Firm ATC (ATCNF).

To determine Firm and Non-Firm ATC, the Transmission Provider uses the following
algorithms for the Scheduling Horizon:

Scheduling Horizon Formulas:

(a) ATCF = TTC – TRM – ETCF – CBM + PostbacksF

(b) ATCNF = TTC – TRMU – ETCF – ETCNF– CBMS + PostbacksNF +

counterflowsF + counterflowsNF (from Operating Horizon [Preschedule/
Day(s) Ahead])

Operating Horizon (Preschedule/Day Ahead): A daily initialize runs at noon each

day and runs to the end of the Preschedule day(s) per the Western Electricity
Coordinating Council (WECC) Preschedule Calendar. Additionally, the ATC initialize
is triggered whenever a new e-Tag is implemented or a new Transmission Service
Reservation (TSR) is confirmed. When the daily initialize occurs the following ATC
calculations are performed:

o Firm ATC is calculated to include Postbacks but not counterflows

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 o Non-Firm ATC is calculated with:

 Postbacks from any Unscheduled/Untagged Firm

 Unscheduled/Untagged CBM or capacity

 Counterflows from Firm and Non-Firm

Schedules/Tags/Commitments in the opposite direction

Operating Horizon Formulas:

(a) ATCF = TTC – TRM - CBM - ETCF + PostbacksF

(b) ATCNF = TTC – TRM –CBM - ETCF - ETCNF + PostbackNF +

counterflowsNF

Planning Horizon (future beyond Preschedule out a maximum of 1 year): Firm

ATC is calculated using the long range load forecasts filed by the Native Load
provider in the Integrated Resource Plan with the regional regulatory entities, long
range load forecasts provided by Network Customers, existing transmission
commitments, TRM, CBM and confirmed Long Term or Short Term Firm Point –to-
Point Transmission Service Requests. Non-Firm ATC is then calculated by
deducting any confirmed Short Term Non-Firm Point-to-Point Transmission Service
Requests.

Planning Horizon Formulas:

(a) ATCF = TTC – TRM - CBM - ETCF + PostbacksF

(b) ATCNF = TTC – TRM – CBM – ETCNF + PostbackNF

If there is a conflict between a posted business practice and the OATT, the OATT shall have precedence.

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Contacts:

Jay Campbell
Network Engineer, Staff
775-834-3782
JCampbell@NVEnergy.com

Rahn Sorensen
Network Engineer, Staff
702-402-7152
RSorensen@NVEnergy.com

Marilyn Franz
Transmission Services, Staff Consultant
775-834-5388
MFranz@NVEnergy.com

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Revision Date Change Summary
000 09/11/2007 Original – BP for ATC Algorithms
001 03/20/2009 Format Change
002 02/05/2010 Contact Change
003 01/03/2011 NEVP Phone Number Change/Logo
004 03/31/2011 Expanded Formula Descriptions Before Horizons
005 06/29/2011 Added Postscripts
006 08/17/2011 NERC Formula Components
007 09/23/2011 No change
008 10/28/2011 No change
009 01/09/2013 Added change log, removed date section and added statement of OATT
precedence.

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