|FERC ORDER 890 ROLLOVER REFORM
Rollover Reform became effective on June 16, 2008 when the revised Attachment K (Attachment FF in the Midwest ISO Tariff) was accepted by the FERC, including amendments to Section 2.2 of the EMT.
Rollover Reform is in a transitional period for five years starting June 16, 2008. This posting outlines the provisions of the "Transition Period" for migration from the previously existing MISO business practices for rollover rights (60-day notice/1-year term) to those standards set forth in Order No. 890 (1-year notice/5-year term).
The transmission customer with an existing contract that seeks to exercise its rollover after June 16, 2008 may exercise this rollover based on the existing 60-day notice rule, in recognition of the fact that during this transition period certain customers may not have a year or more left on their existing contracts. The current 60-day notice rule will continue to apply only to those existing contracts that have less than five years left in their terms as of June 16, 2008. Any customer with an existing contract with five or more years left in its term as of June 16, 2008 will be required to give one-year notice of whether it intends to exercise its rollover right. Whether an existing transmission customer is required to give 60-days or one-year notice when exercising its rollover right under its existing contract, the customer must enter into a minimum of five years of service and meet any of the other requirements of the reformed rollover right in order to retain a rollover right going forward. An existing customer may rollover its service for a term of less than five years, but will not then retain a rollover right for this service.
WHAT DOES THIS MEAN FOR EXISTING CONTRACTS?
If the LTF TSR was queued as of July 13, 2007 (the effective date of the reforms adopted in Order No. 890), then the five-year contract commitment requirement for rollover rights will not apply until June 16, 2008 (the date MISO Att K (FF) was accepted). The 60 day notice requirement applies to that TSR until the first rollover date after 6/16/08. That TSR then must move to the five-year commitment to continue to have rollover rights, and also moves to the 1 year notice requirement.
If the LTF TSR was queued between 7/13/07 and 6/16/08, and it reached a confirmed status BEFORE 6/16/08, then it has one year rollover rights (on 60 days notice) until the first rollover date after 6/16/08. That TSR then must move to the five-year commitment to continue to have rollover rights, and also moves to the 1 year notice requirement.
If the LTF TSR was queued between 7/13/07 and 6/16/08, and it reached a confirmed status AFTER 6/16/08, it ONLY has rollover rights if it meets both the 1-year/5-year criteria. (i.e. it’s term is at least 5 years, and it gives 1 year notice on requesting rollover).
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