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Long-Term Competition Concepts

Long-Term Competition Concepts. Individual Assignment Paul R. Sorenson. Long-Term Competition.

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Long-Term Competition Concepts

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  1. Long-Term Competition Concepts Individual Assignment Paul R. Sorenson

  2. Long-Term Competition • Long-Term Service Request that can be granted (whole or in part) with the assumption that an existing Long-Term Reservation will not exercise their rollover (renewal/ever-green) rights can compete for the rollover rights – LT Challenger. • Incumbent Long-Term Reservation must meet or exceed the term requested by the LT Challenger to exercise their rollover rights – LT Defender.

  3. Long-Term Competition • Transmission Provider will evaluate each Long-Term request for service in queue order. • TP will factor into their evaluation any additional capacity that may be available to grant the Long-Term Request in whole or in part assuming preemption of all Short-Term (Tier 2) Requests and Reservations, and competition for unexercised rollover rights.

  4. Long-Term Competition • TP will present the assessment of service available to the Long-Term Request based on LT Preemption and Competition as part of its Study obligation. • Customer may respond to the assessment with one of four options: • No upgrade; LT Preemption and Competition only • Upgrade with LT Preemption and Competiton • Upgrade regardless of LT Preemption and Competition • Withdraw

  5. Long-Term Competition • If Customer opts for LT Preemption and Competition, Customer must commit to take service to be offered if the (first) LT Defender elects to not match to exercise its rollover rights. • What can standards do to secure such commitment? • Can/should TP require execution of a contingent service agreement to bind commitment? • Preempt ST Defenders on commitment or wait for LT Defender completion. • Once commitment made, if only Short-Term Defenders identified, proceed with preemption and grant service to LT Challenger.

  6. Long-Term Competition • If LT Defender(s) identified • Notify LT Defenders of match term required to exercise their rollover rights. • If RENEWAL request submitted for shorter term than match requirement, RENEWAL is denied (INVALID?) • If valid RENEWAL submitted, exercise rollover rights • Once all LT Defender rollover rights have been successfully exercised or the rollover/renewal deadline is reached: • If no rollover rights exercised, grant LT Challenger service at level committed to; Challenger bound to take service (how?) • If any rollover rights exercised, offer remaining capacity, if any, to LT Challenger; Challenger not bound to take remaining capacity • Preempt ST Defenders as needed based on LT Challenger action.

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