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Avista Merchant Ancillary Services
Service Schedule E
Avista Corp's FERC Electric Tariff Volume No. 9
Dynamic Capacity and Energy Service

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E.1 Dynamic Capacity and Energy Service shall mean the provision of dynamic generating capacity, balancing energy, and associated scheduling services to follow the Purchaser’s load on a trend basis and a moment-to-moment basis, and the provision and absorption of energy to accommodate differences between the Purchaser’s scheduled delivery of energy and the Purchaser’s actual load within a single hour. Such service shall consist of the following:

    E.1.1 Commitment of both on-line (spinning) and on-call generating capacity to follow the Purchaser’s load trend within each hour;

    E.1.2 Commitment of on-line (spinning) generation with automatic generation control to follow the Purchaser’s load from moment to moment (regulation) and to provide frequency control (frequency response);

    E.1.3 Provision and absorption of energy to ensure that the Purchaser’s energy resources match the Purchaser’s actual load on a net basis within each hour; and

    E.1.4 Provision of appropriate metering and telecommunications equipment and scheduling services.

    E.1.5 Appropriate coordination agreements with the customer’s host control area.

E.2 A Dynamic Capacity Band shall be determined under this service as may be mutually agreed upon by the Parties. The Dynamic Capacity Band will be developed to reflect the customer’s load fluctuation characteristics for a given load, to ensure that the Dynamic Capacity and Energy Service provided by Avista Corp is effective.

E.3 An Energy Balancing Band shall be established under this service by mutual agreement between the Parties. The Energy Balancing Band established under this service shall be applied hourly to any imbalance that occurs between the Purchaser’s scheduled delivery of energy and the Purchaser’s actual load within a single hour.

    E.3.1 Avista Corp and Purchaser agree Avista Corp will attempt to net any energy imbalances within the limits of the Energy Balancing Band within thirty (30) days or within the time period established for such corrections under the energy imbalance service offered under the host control area’s open access transmission tariff, or within a mutually agreed-upon time period.

    E.3.2 Energy imbalances outside the Energy Balancing Band will be subject to charges at a rate to be agreed upon by the Parties.

      E.3.2.1 Positive Energy Imbalances: For any hour during which the Purchaser’s scheduled resources exceed the sum of the Purchaser’s load plus the Energy Balancing Band on a net basis for that single hour, Avista Corp shall credit the Purchaser a percentage of Avista Corp’s decremental costs for that hour during which the energy imbalance occurred, such percentage to be agreed upon in a contract between the parties;

      E.3.2.2 Negative Energy Imbalances: For any hour during which the Purchaser’s load exceeds the sum of the Purchaser’s scheduled resources plus the Energy Balancing Band on a net basis for that single hour, the Purchaser shall pay Avista Corp a percentage of Avista Corp’s incremental costs for that hour during which the energy imbalance occurred, such percentage to be agreed upon in a contract between the parties.

E.4 Contracts to provide this service will contain a mutually agreeable minimum term.

E.5 Offers of services available and their offering prices will be posted on a bulletin board site maintained on Avista Corp’s Internet site. The actual transaction prices will be promptly posted after the transactions are consummated. Information about accepted and denied requests and the reasons for denial will also be posted. The bulletin board will be accessible to the public directly through Avista Corp’s Internet home page (currently located at http://www.avistacorp.com) and accessible through a link from Avista Corp’s Open Access Same-time Information System, unless otherwise indicated.

E.6 The Purchaser may not use Dynamic Capacity and Energy Service to satisfy the Purchaser’s obligation under its open access transmission tariff to offer ancillary services to the Purchaser’s open access transmission tariff transmission customers.

E.7 Rates for this service shall be as agreed upon by Avista Corp and the Purchaser.



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