Basin Electric Power Cooperative
Standards of Conduct
For Transmission and
Wholesale Merchant Functions
1. Definitions: Capitalized terms in these Standards of Conduct have the following meanings:
a) FERC - The Federal Energy Regulatory Commission.
b) OASIS - The Open Access Same-time Information System that the Transmission Provider participates in on the Eastern Interconnected System and the Western Interconnected System for the purpose of publicly disseminating transmission system availability and pricing information as required by the FERC.
c) Support Employees Ė Support Employees include employees that support Transmission System Employees and/or Wholesale Merchant Employees, but Support Employees do not direct, organize or execute transmission system operations or reliability functions or Wholesale Merchant Functions. Support Employees must not act as conduits for improper communications or information flows between Transmission System Employees and Wholesale Merchant Employees. The following groups at Basin Electric are Support Employees: Transmission System Maintenance, Engineering, Environmental Services and Plant Operations. Support Employees also include, for example, legal counsel, financial services, accounting services, human resources, information services and data processing.
d) Transmission Customer - An eligible customer (or its designated agent) that (1) can or does execute a transmission service agreement or (2) can or does receive transmission service.
e) Transmission System Employee - An employee of Basin Electric who performs a transmission system operations or reliability function, including any aspects of the transmission system operations or reliability function. The following groups at Basin Electric include Transmission System Employees: Transmission Services and Transmission Regulatory Compliance.
f) Wholesale Merchant Function - The sale for resale of electric energy in interstate commerce (i.e., wholesale transactions).
g) Wholesale Merchant Employee - An employee of Basin Electric who performs a Wholesale Merchant Function. The following groups at Basin Electric include Wholesale Merchant Employees: Marketing and Power Supply, Member Marketing and the Power Supply Development Coordinator.
2. Responsibilities of Basin Electric:
a) Basin Electric will participate in the Mid-Continent Area Power Poolís OASIS and the Rocky Mountain area OASIS. These OASIS conform to the same-time access requirements of the FERC.
b) Basin Electric or its agent will use the OASIS to publicly disseminate to Transmission Customers, including Wholesale Merchant Employees, all information set forth in 18 CFR ß 37.6, including but not limited to: (1) Basin Electricís available transmission capability for point-to-point transmission service; (2) the prices for Basin Electricís various transmission and ancillary service offerings; (3) all discounted prices made available by Basin Electric for transmission or ancillary services; and (4) the additional information, as applicable, described in Section 2(g) below.
c) Basin Electric or its agent will use the OASIS as the vehicle for processing all transmission and ancillary service requests from Transmission Customers, including Wholesale Merchant Employees. All requests for service under Basin Electricís applicable transmission tariff and all responses to such requests will be posted on the OASIS. Transmission Customers, including Wholesale Merchant Employees, may have exclusive access to information regarding the status of their own transactions. These status communications must present the same level of detail to any Transmission Customer presenting a similar request.
d) Basin Electric will maintain its books of account and records separately from those of its affiliates and will make them available for FERC inspection.
e) Basin Electric or its agent will maintain a log, available for audit, detailing the circumstances and manner in which it exercises any discretionary decision making under the terms of its transmission tariff. The information contained in this log will be posted on the OASIS.
f) Basin Electric will maintain a current version of these Standards of Conduct procedures, organizational charts and job descriptions on the OASIS. Employees of Basin Electric have been informed about Standards of Conduct and copies of the Standards of Conduct procedures have been distributed to the employees. Employees of Basin Electric receive annual training about Standards of Conduct. New employees of Basin Electric receive training within one week of beginning their job responsibilities.
g) Additional reporting requirements:
i) In the event that any employee transfers into or out of the position of a Transmission System Employee, or any employee transfers between the Wholesale Merchant Function and transmission system operations or reliability functions, Basin Electric will post such transfer on the OASIS before the transfer occurs, showing the name of the transferring employee, the respective titles held before and after the transfer, and the effective date of the transfer and it will maintain the posting on OASIS for a period of ninety (90) days;
ii) In the event that an employee of Basin Electric discloses information in a manner contrary to the requirements of these Standards of Conduct, Basin Electric will post such information on the OASIS immediately upon discovery of the disclosure; and
iii) In the event that an emergency condition results in a deviation from these Standards of Conduct, Basin Electric will post the incident on the OASIS and report the incident to FERC within twenty-four (24) hours of the time of the deviation.
3. Restrictions on Basin Electric:
a) Basin Electric will institute procedures designed to ensure that, except in emergency circumstances affecting system reliability, Transmission System Employees function independently of Wholesale Merchant Employees. In emergency circumstances affecting system reliability, Basin Electric and any employee may take whatever steps are necessary to keep the system in operation.
b) Basin Electric will not give preference, in matters relating to the sale or purchase of transmission service, to wholesale purchases or sales made on behalf of its own power customers as compared to those of other non-member wholesale power customers.
c) Basin Electric will strictly enforce all of its transmission tariff provisions relating to the sale or purchase of transmission service that do not provide for the use of discretion. To the extent that Basin Electricís transmission tariff provisions relating to the sale or purchase of transmission service call for the exercise of discretion, Basin Electric will ensure that such tariff provisions are applied in a fair, impartial and not unduly discriminatory manner.
4. Restrictions on Transmission System Employees:
a) Transmission System Employees will not conduct Wholesale Merchant Functions.
b) Transmission System Employees will not disclose to Wholesale Merchant Employees any information concerning the transmission system of the transmission provider or the transmission system of another (e.g., including information received from non-affiliates or information concerning available transmission capability, prices, curtailments and ancillary services, etc.) through non-public communications conducted off the OASIS, through access to information not posted on the OASIS that is not at the same time available to the general public without restriction, or through information on the OASIS that is not at the same time publicly available to all users (such as E-mail).
c) Transmission System Employees will not share with Wholesale Merchant employees any market information acquired from Transmission Customers or potential Transmission Customers, or developed in the course of responding to requests for transmission service or ancillary services, except to the limited extent that such information is required to be posted on the OASIS in response to a request for transmission or ancillary services.
5. Restrictions on Wholesale Merchant Employees:
a) Wholesale Merchant Employees will not conduct transmission system operations or reliability functions.
b) Wholesale Merchant Employees will not have access to or be able to contact system control center facilities or similar facilities used for transmission operations reliability functions in a manner that differs in any way from the access available to other Transmission Customers.
c) Wholesale Merchant Employees shall have access to only that information available to the transmission providerís open access transmission customers (i.e., the information posted on an OASIS), and must not have preferential access to any information about the transmission providersí transmission system that is not otherwise available to all users of the OASIS.
d) Wholesale Merchant Employees are prohibited from obtaining information about the transmission providerís transmission system (including information about transmission capability, price, curtailments, ancillary services, and the like) through access to information not posted on the OASIS that is not otherwise also available to the general public without restriction, or through information posted on the OASIS that is not also publicly available to all OASIS users.
6. Physical Separation
a) Transmission System Employees and Wholesale Merchant Employees are located in separate office buildings. All information maintained by Transmission System Employees is secured by locked offices or file cabinets and password-protected computers. Basin Electric does not have a system control center or similar facilities and does not have an Emergency Management System.