1. Network Transmission and Rollover Rights July 22, 2015 BPA

2. Base Scenario On January 1, 2015, NT Customer 1 executes a 10 year NT Agreement with Transmission Provider 1 (TP 1). NT Customer 1 designates G1 as a DNR under that NT Agreement for 100 MW for 10 years. Assume that there is only one path to move power from the POR to NT Customer’s load and this path has a 100 MW limit.

3. Scenario 1 – Competition with a PTP when NT Expires PTP Customer 1 submits a PTP request to TP 1 for capacity over POR1 to move 100 MW of G2 for a eight year term. On January 1, 2024, NT Customer 1 notifies TP 1 that it intends to rollover its NT Agreement for 5 more years. Query: does NT Customer 1 have to identify whether it intends to rollover its DNRs at this point? Or…Does TP 1 assume that NT Customer will continue to take service from all listed DNRs? Can NT Customer 1 change its DNRs before the Rollover, and if so will this affect what it can rollover? Consider Entergy case. Commission says only allow rollover of DNRs “designated at the time of the service agreement/rollover.” Is there competition? Yes. NT Customer 1 must compete for the capacity with PTP Customer 1. What must NT Customer 1 do to maintain its service? NT Customer 1 must extend its NT Service Agreement to eight years to win the competition. (See Order 890-A, p. 666.)

4. Scenario 2 – Competition With Another DNR when NT Expires NT Customer 2 signs a 20 year NT Agreement with TP 1 and requests that G2 be designated as a DNR with a term of 10 years. On January 1, 2024, NT Customer 1 notifies TP 1 that it intends to rollover its NT Agreement for 5 more years. Is there competition between these NT Customers? Yes. There are “mutual exclusive” DNR requests. (Order No. 890-A, P. 666). What must NT Customer 1 do to retain its service? Extend its Transmission Service Agreement to 20 years? No. (Order No. 890-A, p. 666). Extend its Power Contract for G1 for 10 years? Yes (but would also mean extending NT Agreement because DNR cannot exceed NT agreement). Both? (Yes… NT Agreement would have to be extended for 10 years to be concurrent with DNR).

5. Scenario 3 – Competition with PTP when NT has not expired, but DNR has expired(?) PTP Customer 1 submits to TP 1 a PTP request for capacity over POR1 to move 100 MW of G2 for an eight year term. Assume NT Customer 1 is told by its regulators that it must shut down G1 because of environmental issues in 2020. In 2019, NT Customer 1 requests of TP 1 that G1 be replaced with G3 as its DNR in 2020. Is there competition between the NT Customer 1’s request and PTP Customer 1’s request in TP 1 service area? If so, what must NT Customer 1 do to retain its service?

6. Scenario 4 – Competition with Another DNR when NT has Not Expired, but DNR has expired(?) NT Customer 2 signs a 20 year NT Agreement with TP 1 and requests that G2 be designated as a DNR with a term of 10 years. Assume NT Customer 1 is told by its regulators that it must shut down G1 because of environmental issues in 2020. In 2019, NT Customer 1 requests of TP 1 that G1 be replaced with G3 as its DNR in 2020. Is there competition between the NT Customer 1’s request and NT Customer 2’s request? If so, what must NT Customer 1 do to retain its service?