I. Introduction

a. Purpose of Document

This Business Practices document contains the procedures used by Vermont Transco LLC  to provide transmission services pursuant to the Vermont Transco LLC’s (“Transmission Provider” or “Company”) Local Services Schedule 21, a schedule contained within Section II of the ISO-New England Open Access Transmission Tariff (“ISO-NE OATT”).  These practices (“Business Practices”) are intended to supplement and clarify the terms and conditions of service described in Schedule 21. Unless noted here as procedures implemented in compliance with the Federal Energy Regulatory Commission (“FERC”) Order No. 890, to the extent there is a conflict between these Business Practices and the ISO-NE OATT, the ISO-NE OATT controls.  Reading the information in these Business Practices does not relieve the Transmission Customer of the obligation to read and understand (a) the applicable Tariffs and Service Agreements, (b) ISO-NE Market Rule 1, (c) ISO-NE Manuals, (d) ISO-NE Standard Operating Procedures or associated business process requirements.  All services provided and taken under any Tariff or Service Agreement are subject to the conditions and terms of the FERC approved tariffs regardless of the information contained in these Business Practices.  The Company will be filing amendments to Schedule 21-VERMONT TRANSCO LLC in compliance with Order No. 890 on or before October 11, 2007.  At that time these Business Practices may be modified according to the Company’s Process for Amending Business Practices.

b. Overview of Transmission Service in New England

Effective February 1, 2005, ISO-NE began operating as the Regional Transmission Organization (“RTO”) for New England.   Transmission owning companies, as signatories to the Transmission Operating Agreement became Participating Transmission Owners (PTO) in this RTO.  The governing document for providing transmission service in New England is the ISO New England Transmission, Markets and Services Tariff (“ISO-NE Tariff”).  Section II of the ISO-NE Tariff, the ISO-NE OATT, provides the rates, terms and conditions for transmission service over the regional transmission system.  Schedule 21 of Section II of the ISO-NE Tariff provides the rates, terms and conditions associated with providing transmission service over the PTOs’ local transmission facilities.  (Point-to-Point Service over the Phase I/II HVDC Transmission Facilities is provided for under Schedule 20a, as outlined in separate Business Practices for Schedule 20A.)

II. Definitions

Defined terms are capitalized in this document.  Unless otherwise specified in these Business Practices, please refer to the ISO-NE Tariff, Section I, and ISO-NE OATT Schedule 21 for the definition of other terms capitalized in these Procedures.