Manitoba Hydro is a coordinating member of the Midcontinent Independent System Operator (Midcontinent ISO or MISO).

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Russell Beasley
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1 1.0 Introduction This document contains the business practices for Neighbouring Transmission Service Provider Coordination of Long-Term Transmission Service. These practices are intended to supplement the Manitoba Hydro OATT and to the extent that there is a conflict between the Manitoba Hydro OATT and these practices, the OATT will apply. 2.0 General Inquiries For general inquiries regarding the OATT contact: Michael Fones, CET Tariff Administration Officer Transmission Services & Compliance Department Manitoba Hydro Phone (204) mfones@hydro.mb.ca Or Robin Rebillard, P.Eng., M.Sc.E.E. Tariff Administration & Rates Engineer Transmission Services & Compliance Department Manitoba Hydro Phone (204) rrebillard@hydro.mb.ca 3.0 Coordination of the Manitoba Hydro OATT Manitoba Hydro is a coordinating member of the Midcontinent Independent System Operator (Midcontinent ISO or MISO). Transmission customers should be aware that Manitoba Hydro has not implemented an energy market within Manitoba and that MISO provides some tariff coordination services for the Manitoba Hydro Open Access Transmission Tariff (Manitoba Hydro Tariff or MH OATT) for transmission service across Manitoba Hydro as defined by the coordination between Manitoba Hydro and the Midcontinent ISO. Transmission customers will be charged as per the MH OATT. Page 1 of 9

2 4.1 Neighbouring Transmission Service Provider Coordination of Long-Term Transmission Service Requests Impacting the Mantioba - USA interface 4.1 Coordination of Studies between MH, MISO and MPC As neighbouring Transmission Service Providers (TSPs), Manitoba Hydro (MH), MISO and Minnkota Power Cooperative (MPC) have agreed to the following process by which Long-Term Transmission Service Request studies are to be conducted to determine the impacts of Transmission Service Requests(TSRs) on each other s transmission systems. Coordination with s is required by the parties respective tariffs. This process for the joint coordination of TSR studies serves to clarify the existing coordination procedures required by the MH, MISO and MPC tariffs. Any changes to this coordination language will be reviewed by MH, MISO and MPC. 4.2 Definitions agreed to by MH, MISO and MPC for the Coordination of Studies a non-host Transmission Service Provider (TSP) whose transmission system may be reasonably expected to experience a non-trivial loading impact due to a Transmission Service Request (TSR) on a s transmission system. Upgrades upgrades required to the s transmission system to accommodate a s TSR. The need for the System Upgrade will be identified in an impact study and further defined in the facilities study. Business Practices a (set of) document(s) that implement certain obligations of the respective party and its tariff customer. an that has been confirmed through either a or an sensitivity impact analysis as having an impacted facility due to a TSR on a s transmission system as shown in a s impact study report. the TSP (MH, MISO or MPC) that receives the TSR or a TSP (MH, MISO or MPC) where the transmission of energy from the source to the sink identified in the TSR is dependent on transmission service from such TSP. Impact Study Agreement the under each party s respective policies and procedures to evaluate the impact of a TSR. Page 2 of 9

3 Long-Term Firm Transmission Service Request (TSR) a request for long-term firm transmission service across the TSP s transmission system under the respective party s tariff (MISO s tariff, MPC s Open Access Transmission Tariff (OATT), or MH s OATT). Neighbouring TSP(s) The TSP(s), MH, MISO and/or MPC, that do(es) not receive the s TSR. General reference to any or all of the parties to this coordination language. Network Upgrade upgrade required on the s transmission system to accommodate the s TSR as defined by the parties respective tariffs, policies or procedures. Remedial Action Scheme as defined by North American Electric Reliability Corporation (NERC) standards. POR/POD Point of Receipt/Point of Delivery as defined by each party s respective tariffs. Transmission Service Provider or TSP as defined by NERC standards. 4.3 How TSRs are deemed in Scope for the Process for the Coordination of Studies A TSR is deemed within scope for the process for the coordination of studies as follows: MH will be considered an for TSRs requested under the MISO or MPC tariffs if the TSR has a POR or a POD from the following list: ALTE, ALTW, CE, DPC, GRE, LES, MDU, MEC, MGE, MHEB, MP, MPC, MPW, NPPD, NSP, ONTW, OPPD, OTP, SMP, SPC, WAPA, WEC or, WPS. MPC will be considered an for TSRs requested under the MH or MISO tariffs if the TSR has a POR or a POD from the following list: GRE, MDU, MHEB, MP, MPC, NSP, ONTW, OTP, SPC or WAPA. MISO will be considered an for all TSRs requested under the MH or MPCtariffs A TSR that is deemed in scope will be subject to the coordination procedures detailed in this section 4.0. If a TSR is not deemed in scope, it is not subject to the coordination procedures detailed in this section Coordination Process for an in Scope TSR Notice When Manitoba Hydro identifies that a TSR requested under the MH OATT qualifies for the coordination procedures detailed in this section 4.0, Manitoba Hydro will provide notice of the requestedtsr to the (s) once the TSR customer Page 3 of 9

4 has signed an impact study. Then Manitoba Hydro, as a, will send an with details of the associated TSR to the (s) so that the (s) can begin including the TSR in their study models. MH will include the (s) in the ad-hoc study group for the MH TSR impact study. Notice shall be provided by MH to (s) regardless of whether or not any is also a Impact Study Obligations There are two coordination scenarios to consider for an in scope TSR: when two or more of the parties are s, and when only one of the parties is a Process for an in scope TSR that has more than one of the Neighbouring TSPs as s The first scenario occurs when the transmission of energy from the source to the sink identified in an in scope TSR is dependent on transmission service from two or more TSPs which are parties to this coordination procedure. In this scenario, a study to evaluate the impact of the TSR on a s transmission system will be completed by each as per each s tariff, Business Practices, and study methodology. If one of the Neighboring TSPs is a non-, the non- will be deemed an by each and all associated provisions related to Systems coordination will apply, as stated in the second scenario below. Process diagrams are included to provide clarity. If a conflict arises between the process diagrams and the text in this procedure, the text shall rule. Page 4 of 9

5 TSR Coordination Multiple Neighboring Process Process Impact Study Agreement notifies Neighboring Customer signs TSR Impact Study Agreement notifies TSPs Host completes the impact study monitoring Host TSP system and s collaborate on alternative mitigations for the both service areas Host completes the impact study TSP system and s finalizes impact study and includes impacts Systems finalizes impact study and includes impacts on s and Systems issues impact study to s issues impact study to s signs facility study with Host TSP Customer indicates that it wants to proceed to facilities study Customer signs facility study with Host Customer indicates that it wants to proceed to facilities study issues facility study to Systems issues facility study to customer issues facility study to System issues facility study to customer and customer sign construction and customer sign facility construction identifies restriction on service impacts are mitigated identifies restriction on service to be imposed until impacts are mitigated s grant service at level are mitigated Page 5 of 9

6 Process for Coordination The second scenario occurs when the transmission of energy from the source to the sink identified in an in scope TSR is dependent on transmission service from only one of the TSPs party to this coordination procedure. This scenario also covers treatment of a non- for in scope TSRs dependent on transmission service from two TSPs party to this coordination procedure (two s). If a Neighbouring TSP (MH, MISO or MPC) is deemed an in accordance with this section 4.0 for an in scope TSR, the will include the in the coordinated study process by providing the an opportunity to perform a sensitivity impact study on their own transmission system, the results of which will be included in the s impact study report. The shall forward to the the information necessary for the to study the impact of the TSR on their transmission system. The will accept study results from the regarding the impact of the in scope TSR on the s transmission system until a date ten calendar days before the s impact study report is due to be provided to the TSR customer, provided that this allows the a minimum of 45 calendar days (unless the and agreed to a different timeframe) to complete their sensitivity impact study. If the determines that the study process must be extended due to the complexity of the project, the same study process extension will be granted to the. Sensitivity impact studies conducted by will use the methodology and criteria of the conducting the sensitivity impact study. The may either perform its own sensitivity impact study on the impact of the in scope TSR on its transmission system, the results of which will be included in the s impact study report, or may defer to the s analysis for monitoring of the s transmission system. If the System decides to perform its own sensitivity impact study, the time requirements for providing the results of the study to the shall be as described above. If the s policies allow for the sharing of study models, a customer can apply to obtain the study models from the by executing the required confidentiality s. Process diagrams are included to provide clarity. If a conflict arises between the process diagrams and the text in this procedure, the text shall rule. Page 6 of 9

7 TSR Coordination Process Process Customer signs TSR Impact Study Agreement coordination not required at this time No Host checks criteria: Are there Systems? Yes sends Notice to Systems decides if a sensitivity study is needed? TSP relies on for monitoring Yes Yes and No No the impact study monitoring Host TSP system and s and collaborate on draft impacts completes sensitivity study and identifies draft impacts finalizes impact study and includes impacts on Host and Neighboring TSPs from Host and impact studies finalizes draft impacts issues impact study to Neighboring TSPs completes facility study and issues to Are there confirmed impacts in System? Yes Customer signs facilities with Host TSP Customer works with to sign facilities study Customer and sign System construction No issues facilities study to System coordination complete System issues facilities study to and customer sign facility construction notifies that no restriction needs to be imposed on service Yes Are impacts mitigated in time for service? No grants service at level that all impacts are mitigated notifies of restriction on service to be imposed until impacts are mitigated Page 7 of 9

8 Open Access Transmission Tariff Business Practices Manual Chapter I: Neighboring Transmission Service Provider Coordination of Long Term Transmission Service Requests General Impact Study Obligations During the course of an in scope TSR impact study (for both scenarios identified in section 4.4.2), a will monitor each s transmission system and provide the draft results of potential impacts to the. When a performs an impact study, the will use reasonable efforts to monitor the and: the MH study and reinforcement criteria will apply to the monitoring of MH transmission facilities; the MISO transmission owner study and reinforcement criteria will apply to the monitoring of MISO transmission facilities; and the MPC study and reinforcement criteria will apply to the monitoring of MPC transmission facilities. If available, each will provide service limitation policies to the customer upon request. Potential impacts on the Neighbouring TSP s transmission systems will be included in the s impact study report along with any information regarding the validity of the impacts. Each will coordinate with its Neighbouring TSPs to develop alternatives to mitigate identified impacts. The will include the following details provided by the (s) in the s impact study report: the minimum amount of transmission service that can be granted without Upgrades; a preliminary description of the required Upgrades; an estimated planning level cost; and a preliminary estimate of the in-service date of the system reinforcement. A will refer an in scope TSR customer to each to begin the associated facilities study process and construction of System Upgrades for network reinforcements required on that transmission system. For an in scope TSR, eache will promptly share their impact study report with each s upon completion Mitigating a s in scope TSR on the System s Transmission System If the transmission customer proceeds to the facilities study stage with a (or to a service if no facilities study is necessary), notice will be provided by the to any s. The tariff and Business Practices of an will apply to the identification and construction of Page 8 of 9

9 Open Access Transmission Tariff Business Practices Manual Chapter I: Neighboring Transmission Service Provider Coordination of Long Term Transmission Service Requests Upgrades and/or implementation of other mitigation measures to address impacts to the identified in a s impact study. The and will promptly share facilities study reports with each other upon completion. Transmission service for an in scope TSR will only be granted by a up to the amount at which there are no transmission constraints identified by the studies on the transmission systems of the (s). Partial transmission service may be granted if the is not constrained at that level of service. The requested amount of transmission service can only be granted once all identified constraints on the transmission systems of the Neighbouring TSPs (MH, MISO, and MPC) have been mitigated. For an in scope TSR, if a s transmission system has constraints that can be addressed through the use of alternative measures in lieu of constructing facilities, or as an interim measure while facilities are under construction, firm transmission service will not be granted a beyond the amount permitted by the s Business Practices. 5.0 Neighbouring Transmission Service Provider Coordination of Long -Term Transmission Service Requests Impacting the Manitoba Saskatchewan and Manitoba - Ontario interfaces Manitoba Hydro will coordinate with SaskPower for Transmission Service Requests affecting the Saskatchewan Transmission Service Provider region on a case by case basis. Manitoba Hydro will coordinate with the Independent Electricity System Operator (IESO) for Transmission Service Requests affecting the Ontario Transmission Service Provider region on a case by case basis. 6.0 No Partial Interim Service in Manitoba Manitoba Hydro does not permit alternative measures in lieu of constructing facilities or as an interim measure while facilities are under construction to grant Firm transmission service. Page 9 of 9

TRANSMISSION TRANSMISSION SYSTEM OPERATIONS DIVISION

TRANSMISSION TRANSMISSION SYSTEM OPERATIONS DIVISION Vice-President of Transmission Reporting to the President and Chief Executive Officer, the Vice-President of Transmission, is responsible for the overall