Pacific Gas & Electric (PCG)

2.2.  Applications for Participating TO Status; Eligibility Criteria.

        2.2.1    Application Procedures.    All applications under this Section 2.2 shall be made in accordance with the procedures adopted by the ISO from time to time and shall be accompanied by:

        (i)    a description of the transmission lines and associated facilities that the applicant intends to place under the ISO's Operational Control;

        (ii)   in relation to any such transmission lines and associated facilities that the applicant does not own, a copy of each document setting out the applicant's Entitlements to such lines and facilities;

        (iii)  a statement of any Encumbrances to which any of the transmission lines and associated facilities to be placed under the ISO's Operational Control are subject, together with any documents creating such Encumbrances and any dispatch protocols to give effect to them, as the ISO may require;

        (iv)  a statement that the applicant intends to place under the ISO's Operational Control all of the transmission lines and associated facilities referred to in Section 4.1 that it owns or, subject to the treatment of Existing Contracts under Sections 2.4.3 and 2.4.4 of the ISO Tariff, to which it has Entitlements and its reasons for believing that certain lines and facilities do not form part of the applicant's transmission network pursuant to Sections 4.1.1.i and 4.1.1.ii;

        (v)   a statement of any Local Reliability Criteria to be included as part of the Applicable Reliability Criteria;

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        (vi)  a description of the applicant's current maintenance practices;

        (vii) a list of any temporary waivers that the applicant wishes the ISO to grant under Section 5.1.6 and the period for which it requires them;

        (viii) a copy of the applicant's proposed TO Tariff, if any, must be filed;

        (ix)  address and contact names to which notices under this Agreement may be sent pursuant to Section 26.1;

        (x)   any other information that the ISO may reasonably require in order to evaluate the applicant's ability to comply with its obligations as a Participating TO; and

        (xi)  details of the applicant's Settlement Account.

        2.2.2    Notice of Application.    The ISO shall require the applicant to deliver to each existing Participating TO a copy of each application under this Section 2.2 and each amendment, together with all supporting documentation and to provide the public with reasonable details of its application and each amendment through WEnet or the ISO internet website. The ISO shall not grant an application for Participating TO status until it has given each other Party and the public sixty (60) days to comment on the original application and thirty (30) days to comment on each amendment.

        2.2.3    Determination of Eligibility.    Subject to Section 2.2.4, the ISO shall permit a Party who has submitted an application under this Section 2.2 to become a Participating TO if, after considering all comments received from other Parties and third parties, the ISO determines that:

            i.  the applicant's transmission lines and associated facilities that are to be placed under the ISO's Operational Control can be incorporated into the ISO Controlled Grid without any material adverse impact on its reliability;

           ii.  incorporating such transmission lines and associated facilities into the ISO Controlled Grid will not put the ISO in breach of Applicable Reliability Criteria and its obligations as a member of WSCC;

          iii.  objections by the ISO under Section 4.1.3 shall have been withdrawn or determined by the ISO Governing Board to be invalid;

          iv.  all applicable regulatory approvals of the applicant's TO Tariff have been obtained; and

           v.  the applicant is capable of performing its obligations under this Agreement.

        Objections under Section 4.1.3 relating solely to a portion of a TO's Facilities shall not prevent the TO from becoming a Participating TO while the objections are being resolved.

        2.2.4    Challenges to Eligibility.    The ISO shall permit a Party to become a Participating TO pending the outcome of ISO ADR Procedures challenging whether or not the applicant satisfies the criteria set out in Section 2.2.3 if the ISO determines that the applicant satisfies those criteria unless otherwise ordered by FERC.

        2.2.5    Becoming a Participating TO.    A Party whose application under this Section 2.2 has been accepted shall become a Participating TO with effect from the date when its TO Tariff takes effect, either as a result of acceptance by FERC or by action of a Local Regulatory Authority, whichever is appropriate. The TO Tariff of each Participating TO shall be posted on WEnet or the ISO internet website.

        2.2.6    Procedures and Charges.    The ISO shall adopt fair and non-discriminatory procedures for processing applications under this Section 2.2. The ISO shall publish its procedures for processing applications under this Section 2.2 on WEnet or on the ISO internet website and shall furnish a copy of such procedures to FERC. Applicants shall pay all costs incurred by the ISO in processing their

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applications. The ISO will furnish applicants, upon request, an itemized bill for the costs of processing their application.