Pacific Gas & Electric (PCG)

4.5.  Procedure for Designating ISO Controlled Grid Facilities.

        4.5.1    Additional Facilities.    If the ISO determines that it requires Operational Control over additional transmission lines and associated facilities not then constituting part of the ISO Controlled Grid in order to fulfill its responsibilities in relation to the ISO Controlled Grid then the ISO shall apply to FERC pursuant to Section 203 of the Federal Power Act, and shall make all other regulatory filings necessary to obtain approval for such change of control and shall serve a copy of all such applications on the affected Participating TO and the owner of such lines and facilities (if other than the Participating TO). In the event that a Party invokes the dispute resolution provisions identified in Section 15 with respect to the transfer of Operational Control over a facility, such facility shall not be transferred while the dispute resolution process is pending except pursuant to Section 4.5.2.

        4.5.2    Temporary Operational Control.    The ISO may exercise temporary Operational Control over any transmission lines or associated facilities of a Participating TO (including lines and facilities to which the Participating TO has sufficient Entitlement to permit the ISO to exercise Operational Control over them) that do not then form part of the ISO Controlled Grid:

            i.  in order to prevent or remedy an imminent System Emergency;

           ii.  on reasonable notice, for a period not exceeding ninety (90) days, in order to determine whether exercising Operational Control over the relevant lines and facilities will assist the ISO to meet Applicable Reliability Criteria or to fulfill its Control Area responsibilities under the ISO Tariff; or

          iii.  subject to any contrary order of FERC, pending the resolution of the procedures referenced in Section 4.5.1.

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        4.5.3    Return of Control of Facilities.    Control of facilities over which the ISO has assumed temporary Operational Control will be returned to the appropriate Participating TO when the conditions set forth in Section 4.5.2 no longer require the ISO to assume such temporary control.

        4.5.4    Transmission Expansion Projects.    Any transmission expansion projects carried out pursuant to Section 3.2 of the ISO Tariff shall be subject to the ISO's Operational Control from the date that it goes into service or after such period as the ISO deems to be reasonably necessary for the ISO to integrate the project into the ISO Controlled Grid.