New Brunswick Coordination Agreement

1. New Brunswick Coordination Agreement NEPOOL Reliability Committee April 5, 2005

2. New Brunswick Coordination Agreement- Overview - • Provides for the reliable operation of the interconnected New England and New Brunswick systems in accordance with NERC/NPCC Requirements. • Establishes a structure and framework for the reliability-related functions associated interconnected operations: • Recognizes that ISO-NE and New Brunswick will operate systems in accordance with each Party’s Tariffs, Rules and Procedures. • These responsibilities represent measures that ISO-NE and New Brunswick undertake today and have always undertaken.

3. New Brunswick Coordination Agreement- Purpose - • NERC Version 0 Standards establish that Parties should have an agreement in place that facilitates emergency transactions and identifies interconnection operating limits. • While ISO-NE has various Procedures and Letter Agreements in place today identifying how these issues are handled, this Coordination Agreement formalizes and incorporates these concepts and practices within a single document. • Coordination Agreement also updates the Emergency Energy pricing methodology.

4. New Brunswick Coordination Agreement- Emergency Energy Pricing - • Coordination Agreement benefits NE by updating current NB pricing practice for Emergency Energy sales to New England. • Previous practice: Cost of Emergency Energy based on the higher of: • 110% of NB Power’s cost of generating or purchasing such energy; or • the NEPOOL Energy Clearing Price (i.e., the NB external node). • Updated pricing practice: Cost of Emergency Energy based on the NB Market Clearing price at their NE external node. • ISO will seek NEPOOL Markets Committee support for this change