Testimony of ISO New England On Its 2014 Budget Proposal

Exhibit 3
ISO New England Inc. Exhibit 3

Recovery of 2014 Administrative Costs

UNITED STATES OF AMERICA

BEFORE THE

FEDERAL ENERGY REGULATORY COMMISSION
ISO New England Inc. ) Docket No. ER14-_____-000
DIRECT TESTIMONY

OF

ROBERT C. LUDLOW

Filed on: October 15, 2013


TABLE OF CONTENTS
PURPOSE OF TESTIMONY ......................................................................................................... 2
CURRENT OPERATIONS AND ORGANIZATIONAL STRUCTURE OF THE ISO ............... 4
THE BUDGET DEVELOPMENT PROCESS ............................................................................... 5
DESCRIPTION OF THE 2014 REVENUE REQUIREMENT ...................................................... 7
ACTIVITY ACCOUNTING SYSTEM ........................................................................................ 20
2014 COST ALLOCATION AMONG SCHEDULES 1, 2, AND 3 ............................................ 22
THE ISO RATE DESIGN AND BILLING DETERMINANTS .................................................. 34
RATE SUMMARY ...................................................................................................................... 37
FIXED FEES ................................................................................................................................. 39
CONCLUSION ............................................................................................................................. 41


ATTACHMENTS TO THIS TESTIMONY
RCL-1: Organization Chart (CEO direct reports)
RCL-2: Revenue Requirement and True-Up
Schedule 1: [reserved]
Schedule 2: 2014 Revenue Requirement and 2012 True-Up

RCL-3: Test Year 2014 Cost Allocations
Schedule 1: Total Cost Allocation to Schedules by Department
Schedule 2: Total Direct Labor Allocation to Schedules by Department
Schedule 3: Total Cost Allocations to Schedules by Cost Category
Schedule 4: Direct Labor Cost Allocations to Schedules by Cost Category
Schedule 5: Allocation Factors by Cost Category
Schedule 6: Allocation of Depreciation and Amortization Expense
RCL-4: [reserved]
RCL-5: 2014 Core Operating Budget
Schedule 1: Overview of Operating Expense Budget
Schedule 2: Detail of Components of 2014 Operating Expense Budget
Schedule 3: Variance Summary (vs. 2013)
Schedule 4: Detailed Change in Budget (vs. 2013)
Schedule 5: Staffing Projections
Schedule 6: 2014 Capital Budget

RCL-6: [reserved]
RCL-7: Escalation Factors and Billing Determinants
Schedule 1: Development of Escalation Factors
Schedule 2: Billing Determinants for Calendar Year 2013 and Test Year 2014
Schedule 3: Rate Design Summary
Schedule 4: Annual Revenue Comparison at Present and Proposed Rates
Schedule 5: Comparison of Schedule 2 Revenues from Transaction Units for 2012
Schedule 6: Schedule 2 TU True-Up Summary

RCL-8: NEPOOL Resolution

Recovery of 2014 Administrative Costs Page 1

UNITED STATES OF AMERICA 1
BEFORE THE 2
FEDERAL ENERGY REGULATORY COMMISSION 3
ISO NEW ENGLAND INC. ) Docket No. ER14-_____-000 4
Direct Testimony of Robert C. Ludlow 5
Q. PLEASE STATE YOUR NAME AND BUSINESS ADDRESS. 6
A. My name is Robert C. Ludlow. My business address is One Sullivan Road, 7
Holyoke, Massachusetts 01040-2841. 8
Q. WHAT IS YOUR OCCUPATION? 9
A. I am a Vice President and the Chief Financial and Compliance Officer of ISO 10
New England Inc. (the ISO). I served in the role of Vice President and Chief 11
Financial Officer from the time the ISO commenced its operations on J uly 1, 1997 12
until September 2000. At that time, I began working as an outside consultant for 13
the ISO until August 2002, when I rejoined the ISO as Vice President and Chief 14
Financial Officer. In J uly of 2008 my title changed to reflect my expanded 15
responsibility for compliance. The compliance organization is responsible for 16
developing and maintaining the Companys compliance management system. 17
This system captures the Companys compliance obligations, including those of 18
the North American Electric Reliability Corporation (NERC), North American 19
Energy Standards Board, and the Northeast Power Coordinating Council 20
(NPCC). 21


Q. PLEASE DESCRIBE YOUR EDUCATIONAL BACKGROUND AND 1
PROFESSIONAL EXPERIENCE. 2
A. I hold a B.B.A. in Accounting from St. Bonaventure University. Prior to joining 3
the ISO, I was a Partner at the accounting firm of Marden, Harrison & Kreuter, 4
CPAs. I also served as the Chief Financial Officer of Western Beef, Inc. I am a 5
Certified Public Accountant. 6
Q. HAVE YOU PREVIOUSLY TESTIFIED BEFORE A REGULATORY 7
COMMISSION? 8
A. Yes. I previously have testified before the Commission to support prior 9
administrative rate filings by the ISO in Docket Nos. ER13-185-000 (rates 10
proposed for 2013), ER12-191-000 (rates proposed for 2012), ER11-1943-000 11
(rates proposed for 2011), ER10-154-000 (rates proposed for 2010), ER09-197- 12
000 (rates proposed for 2009), ER08-189-000 (rates proposed for 2008), ER07- 13
116-000 (rates proposed for 2007), ER06-94-000 (rates proposed for 2006), 14
ER00-395-000 (rates proposed for 2000), and ER98-3554-000 (rates proposed for 15
1998). 16
PURPOSE OF TESTIMONY 17
Q. WHAT IS THE PURPOSE OF YOUR TESTIMONY? 18
A. I am providing this testimony primarily to support the ISOs proposed revenue 19
requirement for 2014 (2014 Revenue Requirement) and the updated rates to 20
collect it. My Direct Testimony presents the ISOs 2014 Revenue Requirement as 21


reflected in the proposed revised tariff sheets attached as Exhibits 1 and 2 (clean 1
and blacklined versions, respectively) to the filing letter. Specifically, I will 2
summarize the elements of the ISOs 2014 Revenue Requirement (including the 3
true-up mechanism), describe the ISOs budget process, present the ISOs 2014 4
Core Operating Budget, and describe the ISOs activity accounting system. I will 5
also present the development of the Test Year 2014 cost of service study 6
associated with the ISO providing service under the three primary rate schedules 7
included in Section IV.A of the ISOs Transmission, Markets and Services Tariff 8
(the Tariff). Section IV.A of the Tariff provides for recovery of the ISOs 9
administrative expenses. The three primary rate schedules are: (1) Schedule 1 10
Scheduling, System Control and Dispatch Service (Scheduling Service); (2) 11
Schedule 2 Energy Administration Service; and (3) Schedule 3 Reliability 12
Administration Service. I will present proposed escalation factors to adjust actual 13
load data for the 12-month period ending J uly 2013 to the Test Year 2014 for the 14
purpose of rate design, discuss the rate design utilized, and the proposed rates, 15
including certain fixed fees. 16
Q. HOW WILL YOUR TESTIMONY BE ORGANIZED? 17
A. Before offering a conclusion, I will describe: 18
(i) the current operations and organizational structure of the ISO; 19
(ii) the budget development process; 20
(iii) the various elements of the 2014 Revenue Requirement; 21


(iv) the ISOs activity accounting system; 1
(v) how the ISO allocated its costs among the rates it proposes to charge in the 2
Tariffs Schedules 1, 2, and 3; 3
(vi) the 2014 rate design and escalation factors; 4
(vii) the 2014 rate design and billing determinants; 5
(viii) a rate summary; and 6
(ix) fixed fees. 7
CURRENT OPERATIONS AND ORGANIZATIONAL STRUCTURE OF THE ISO 8
Q. WHAT ARE THE CURRENT OPERATIONS AND ORGANIZATIONAL 9
STRUCTURE OF THE ISO? 10
A. The ISO provides three basic services to its customers: 11
1. Scheduling Service (Schedule 1): Through this service, the ISO schedules 12
at the pool level the movement of power through, out of, within, or into 13
the New England Control Area. 14
2. Energy Administration Service (Schedule 2): Through this service, the 15
ISO administers the energy markets and facilitates generation and demand 16
dispatch, auctions for Financial Transmission Rights (FTRs), and other 17
services (i.e., under Section III of the Tariff). 18
3. Reliability Administration Service (Schedule 3): Through this service, the 19
ISO administers the reliability markets (and facilitates reliability-related 20


transactions and arrangements) in accordance with Market Rule 1 and 1
provides other reliability and informational services. 2
The ISO is governed by an independent Board of Directors with a cross-section of 3
skills and experience, including regulatory affairs, energy industry management, 4
corporate finance, bulk-power systems, public policy, and market development. 5
The ISO is overseen by a President and Chief Executive Officer (CEO) who has 6
seven direct reports. An Executive Vice President and Chief Operating Officer is 7
responsible for Market Operations, System Operations, System Planning, Market 8
Development, Program Management, Business Architecture, and Information 9
Technology. The other direct reports of the CEO are: Vice President and General 10
Counsel; Vice President of External Affairs and Corporate Communications; Vice 11
President, Chief Financial & Compliance Officer; Vice President, Human 12
Resources; Vice President, Market Monitoring; and Director, Internal Audit. The 13
latter two positions report to the CEO for administrative purposes only. See RCL- 14
1, attached to this testimony. 15
THE BUDGET DEVELOPMENT PROCESS 16
Q. HOW WERE THE ISOS BUDGETS DEVELOPED FOR 2014? 17
A. The ISO prepares budgets in advance of each upcoming year using a seven-step 18
business planning process, throughout which stakeholder input is sought. The 19
seven-step process is: 20


1) define objectives, activities and goals; 1
2) identify efficiencies for each department; 2
3) determine resource requirements; 3
4) develop budget estimates for each department; 4
5) adjust budgets to ensure that staff resources and activities are aligned with the 5
business plan; 6
6) conduct senior staff review to ensure alignment of budget with the ISOs 7
business plan and overall fiscal constraint; and 8
7) develop priorities. 9
Q. PLEASE SUMMARIZE THE STAKEHOLDER PROCESS USED TO 10
REVIEW THE 2014 BUDGET. 11
A. After reviewing budget scenarios with both state agencies and NEPOOL at 12
meetings in J une, the ISO presented the 2014 Revenue Requirement at the 13
NEPOOL Budget and Finance Subcommittees August 23, 2013 meeting and at a 14
meeting for state agencies on August 28, 2013. The ISO also presented the 15
budgets to the NEPOOL Participants Committee at the Committees meetings on 16
September 13 and October 4, 2013. At the October 4 meeting, the ISOs 2014 17
Revenue Requirement was supported by 86.28% of the Participants Committee. 18
The terms of the NEPOOL Participants Committees action are reflected in the 19
resolution in RCL-8, attached to this testimony. In that same resolution, the 20
NEPOOL Participants Committee also supported the capital budget for 2014. The 21
ISO Board of Directors approved the budgets on October 11, 2013. 22


Q. DESCRIBE THE ISOS HISTORY OF STAYING WITHIN ITS BUDGET. 1
A. The ISO has amassed a consistent track record of spending integrity; since the 2
inception of its self-funding tariff for calendar year 1998, the ISOs annual 3
spending has never exceeded the budget used to calculate the revenue requirement 4
accepted by the Commission that forms the basis for the rates for the year in 5
question. Should the need ever arise for the ISO to spend beyond a given years 6
budget (including contingencies), the ISO will first seek stakeholder support and 7
then file a rate increase with the Commission, thus allowing stakeholder and 8
Commission review before approving such increases. 9
DESCRIPTION OF THE 2014 REVENUE REQUIREMENT 10
Q. WHAT IS THE 2014 REVENUE REQUIREMENT AND WHAT ARE ITS 11
ELEMENTS? 12
A. As shown in RCL-2, Schedule 2, the 2014 Revenue Requirement is approximately 13
$171.2 million. The 2014 Revenue Requirement contains the following 14
components, each of which is discussed below: (1) the 2014 Core Operating 15
Budget ($140.9 million) (i.e., the administrative costs of running the ISO); (2) 16
depreciation and amortization of regulatory assets ($28.4 million); and (3) a final 17
true-up adjustment for 2012 (the 2012 True-Up Amount) calculated pursuant to 18
Section IV.A.2.2 of the Tariff (an increase in the 2014 Revenue Requirement of 19
approximately $1.9 million resulting from an under-collection in 2012). The 20
combination of the first two items totals approximately $169.3 million, as seen on 21
Line 8 of RCL-2, Schedule 2. 22


Q. WHAT IS THE IMPACT OF THE INCREASED REVENUE 1
REQUIREMENT ON CONSUMER COSTS? 2
A. If the ISOs Revenue Requirement was fully passed through to end-use customers, 3
their cost would average 86 cents per month, up from 2013 levels of 83 cents. See 4
slide 12 of the ISOs annual budget presentation to stakeholders (the Budget 5
Presentation). The presentation is located at http://www.iso- 6
ne.com/committees/comm_wkgrps/prtcpnts_comm/budgfin_comm/budgfin/mtrls/ 7
2013/aug232013/2014_op_cap_budg_nepoool_bf_08_23_13_updated_for_oct_np 8
c.pdf. 9
Q. WHAT ARE THE MOST SIGNIFICANT CHANGES IN THE 2014 10
OPERATING EXPENSE BUDGET COMPARED WITH THE 2013 11
OPERATING EXPENSE BUDGET? 12
A. As described below, the ISO proposes to increase its Core Operating Budget by 13
approximately $5.3 million from 2013 levels to fund (i) external factors and 14
compensation; (ii) new market rules and operational changes; and (iii) other 15
measured growth initiatives. 16
Q. PLEASE DESCRIBE THE COSTS FOR EXTERNAL FACTORS AND 17
COMPENSATION INCREASES. 18
A. This category includes merit and promotional increases; increased interest 19
expense; increased costs of computer software/maintenance; increased Northeast 20


Power Coordinating Council dues; and incremental costs for operating the new 1
Back-Up Control Center. 2
The ISO has budgeted for a 3.0% increase in salaries for merit and a .5% increase 3
for promotions. The budgeted amounts for merit and promotion are developed 4
using data from several national compensation consultants, and are within the 5
ranges reported in these surveys. Please see Ms. Dicksteins testimony for detail 6
on the development of these allocations, compensation practices in general, and 7
the ISOs compliance with the standards of the Internal Revenue Service 8
regarding the reasonableness of executive compensation. 9
Interest expense for 2014 will increase from 2013 levels. The interest expense on 10
the ISOs debt is recovered currently via the Tariff. The cost increase is due in 11
part to acceleration of the replacement of the private placement debt that was 12
issued in September 2004. This debt funds the ISOs capital program. More 13
specifically, the ISO entered into $39 million in private placement notes in 14
September 2013 to replace the outstanding 2004 notes. The ISO took this action 15
slightly before the expiration of the current notes, in order to take advantage of the 16
current low interest rate environment, thereby locking in a favorable interest rate. 17
The new private placement notes have a delayed funding date of May 2014 to 18
minimize the cost of the additional interest expense. 19
In addition, the interest costs on the $36 million in the Connecticut-issued tax- 20
exempt bonds that were used to fund the new Back-up Control Center will 21


become an operating expense. There is also a slight increase due to a full years 1
impact of interest expense related to the $11 million in private placement notes 2
that were issued in November 2012 to supplement the $39 million, again for use 3
in the capital program. 4
Finally, this category includes costs of operating the new Back-Up Control Center, 5
including costs of physical security, maintenance and upkeep, utilities, and other 6
costs. 7
Q. PLEASE DESCRIBE THE INCREASES FOR NEW MARKET RULES 8
AND OPERATIONAL CHANGES. 9
A. These costs are in the areas of Market Operations, System Operations, System 10
Planning and Information Technology, and follow changes to market rules and 11
operations, many of which are related to the Strategic Planning Initiative. 12
Through that effort, the region has identified several key risks that will impact the 13
regions power system and wholesale electricity markets. The risks are: 14
Risk 1: Resource Performance and Flexibility 15
Risk 2: Increased Reliance on Natural Gas-Fired Capacity 16
Risk 3: Potential Retirement of Generators 17


Risk 4: Integration of a Greater Level of Variable Resources 1
Risk 5: Alignment of Markets with Planning 2
In 2014, the region will implement related solutions, including verification and 3
determination of wind models for operational studies, integration of photovoltaic 4
and other variable resources, fuel tracking, and Forward Capacity Market 5
performance incentives. 6
Q. PLEASE DESCRIBE THE INCREASES FOR MEASURED GROWTH 7
INITIATIVES. 8
A. This category includes the costs of various projects, including compliance with 9
Order No. 1000, Intra-Day Offers, and management of cyber security risks. This 10
category includes funding for the following six new full-time employees: one 11
full-time transmission planner to facilitate compliance with the new transmission 12
planning and cost allocation requirements of Order 1000; three full-time 13
employees to manage the new energy market offer process; an employee in the 14
Cyber Security area; and an employee to assist in the implementation of the new 15
information technology asset management program. 16
Q. PLEASE PROVIDE FURTHER INFORMATION ON INCREASED HEAD 17
COUNT FOR 2014. 18
A. To determine its resource needs for 2014, the ISO looked at the work load to be 19
completed, including on-going work from 2013, non-repetitive work from 2013 to 20
2014, and new work for 2014. Each area of the Company then reviewed the 21


current resources available to complete this work, utilizing the current employee 1
complement to perform this work to the greatest extent possible. Accordingly, in 2
approaching the completion of the bottom-up budget, the ISO looked to add 3
positions only if (1) the position was needed for resource purposes or (2) the 4
position was cost beneficial to the overall budget. 5
The ISO is requesting a total of eight additional positions in the 2014 budget 6
(funding for five net of vacancy rate). Of the eight requested positions, six are for 7
Measured Growth initiatives, as discussed above; the remaining two are for 8
positions in Legal and IT Systems that were added as alternatives to higher-cost 9
options of external resources (meaning that the savings in professional fees more 10
than offset the cost of the new position). 11
These eight positions relate to only a small portion of the additional work being 12
taken on for 2014. In addition to taking on a portion of Measured Growth work, 13
including Order 1000 work, with existing staff, the ISO will also undertake the 14
Market Rule and Operational Changes described above with existing staff. The 15
increased work stemming from Market Rule and Operational Changes is 16
calculated to be $3,700,000, or the full time equivalent of approximately 25 17
positions. Rather than increasing the requested headcount by 25, the ISO was able 18
to cover this new work and the Measured Growth projects with an increase of 19
only eight new positions by redirecting existing employees work. 20


Q. THERE HAS BEEN SIGNIFICANT ORGANIZATIONAL GROWTH IN 1
RECENT YEARS. CAN YOU EXPLAIN IT? 2
A. The ISO has grown significantly, adding more than 100 new employees since 3
2009. This growth reflects the increase in the complexity of the ISOs operations. 4
For example, with the integration of demand resources into the Forward Capacity 5
Market, the number of registered and modeled assets has increased from a few 6
hundred to a few thousand. In addition, compliance with new and emerging 7
NERC and NPCC standards has required a significant investment. The ISO has 8
also provided additional services, like doubling its billing obligations through 9
twice-weekly billing, which further mitigated market participants risk of 10
significant payment defaults. All of these changes require personnel. 11
More specifically, there are three major areas that have contributed to the need for 12
increased staffing. The first major area is that of Strategic Initiatives, Measured 13
Growth and Expanded Services. This includes employees to run transmission 14
planning and economic studies, to administer the Forward Capacity Market, and 15
new market monitoring positions, as well as employees to manage demand 16
resource integration. 17
Another area that has contributed to the addition of employees is the replacement 18
of long-term contractors with FTEs. At least a dozen employees have been added 19
to replace temporary help or contractors where the responsible manager made a 20
determination that the work being performed is permanent and that it was cost 21


advantageous to convert the position to a FTE. These added positions had little or 1
no impact on the budget. 2
Finally, the third major area is that of staffing and training requirements for 3
System Operators. This includes employees to staff the Back-Up Control Center, 4
which is more robust as a result of compliance with more stringent requirements 5
from the Commission and NERC, and employees for training and backup for 6
Control Room Operators. 7
Q. HOW DOES ISO-NES SIZE COMPARE TO OTHER ISOS AND RTOS? 8
While the types and scopes of services vary widely among the ISOs and RTOs, 9
many costs are largely fixed, because all ISOs and RTOs must comply with the 10
Commissions orders and mandatory reliability standards. ISO-NE does review 11
what others are spending. (See detail on comparisons in the ISOs Budget 12
Presentation.) ISO-NEs review indicates that its cost structure is reasonable. 13
Q. PLEASE DESCRIBE THE BUDGET CUTS AND DEFERRALS THAT 14
OFFSET THESE INCREASED COSTS. 15
A. For 2014, the ISO has realized a $1.8 million reduction in pension plan costs due 16
to a change in the discount rate. The ISO has also realized $6.2 million in savings 17
by reallocating resources, automating work, identifying efficiencies, and 18
eliminating discontinued or non-repetitive work. 19


Q. DOES THE REVENUE REQUIREMENT INCLUDE DEPRECIATION ON 1
ITEMS IN THE CAPITAL BUDGET THAT ARE PLACED IN SERVICE 2
IN 2014? 3
A. Yes. The ISOs depreciation rates remain unchanged from those accepted by the 4
Commission in the ISOs 2013 Operating Expense Budget. The ISO uses the 5
straight-line depreciation methodology based on no net salvage value and the 6
various average service lives described below. These service lives reflect the 7
ISOs historical experience and forecasted expectations for capital projects placed 8
into service, are necessary to comply with the ISOs funding mechanisms, are 9
consistent with the ISOs historical experience, and have been repeatedly 10
determined by independent auditors to be appropriate. The service lives are: 11
Computer hardware, software and accessories: 3 to 5 years 12
Software development costs: 3 to 5 years 13
Furniture and fixtures: 7 years 14
Machinery and equipment: 7 years 15
Building: average of 25 years (based on the opinion of independent bond 16
counsel and analysis of the service lives of the different aspects of the 17
building (e.g., the buildings steel and concrete at 40 years, mechanical 18
and electrical work at 25 years, and high wear-and-tear elements at 15 19
years)) 20
Leasehold/Building Improvements: lesser of 1 to 25 years or remaining 21
life of the lease or building, as determined at the time of the purchase 22


based on the nature of each such improvement (e.g., rooftop railing at 1
twenty-five years, air conditioning unit at fifteen years, capacitor bank at 2
ten years) 3
Vehicles: 3-7 years 4
The ISO uses private placement debt, issued pursuant to Commission 5
authorization under Section 204 of the Federal Power Act, to fund its capital 6
program. The private placement notes are non-amortizing, with interest-only 7
payments due semi-annually throughout the life of the notes, and the principal due 8
at the end of the term. Revenue reserved for the depreciation of capital assets, as 9
well as assets placed in service in prior years and still depreciable, may be 10
available to repay the remaining principal amounts on outstanding debt. Also, the 11
issuance of the notes will support future capital expenditures by allowing the ISO 12
to use amounts collected for residual depreciation and depreciation from future 13
capital items to fund those capital expenditures. The ISOs working capital needs 14
have been funded through a revolving line of credit. 15
Please note that capital projects include design work and, if the design is approved 16
and built, the design work is part of the asset on which depreciation is collected 17
when the asset is placed in service in future years via the revenue requirement. 18
On the other hand, if the capital project is abandoned, the ISO writes off the 19
design work and recovers it in full in the year of abandonment. In addition, each 20


capital project also includes the first year maintenance cost and license fees for 1
any newly capitalized software. 2
Q. HOW DOES THE ISO ADDRESS UNEXPECTED COSTS THAT MIGHT 3
MATERIALIZE DURING 2014? 4
A. The 2014 Core Operating Budget includes two line items to address unexpected 5
needs: (i) the CEO Emerging Work allowance of $1.1 million; and (ii) the 6
Operating Contingency of $700,000. Inclusion of these contingency amounts 7
recognizes that circumstances may arise that the ISO does not foresee in setting its 8
2014 Revenue Requirement for its various departments and programs. 9
The CEO Emerging Work Allowance covers new or deferred activities and 10
initiatives that emerge or become priorities during the year. Approval from both 11
the CEO and CFO is required before the ISO may draw upon these funds. 12
The Operating Contingency provides a funding source of last resort. ISO 13
management cannot access this fund without first obtaining approval from the 14
ISOs independent Board of Directors. 15
Q. DO YOU FORESEE ANY PARTICULAR CONTINGENCIES THAT 16
WILL WARRANT THE ISO TAPPING INTO THESE FUNDS? 17
A. I cannot say for sure what type of contingencies might arise. There are, however, 18
several ongoing issues that might require additional funds not included in the 19
2014 Core Operating Budget. The biggest issue is litigation that could be initiated 20


or increased in 2014. Additional risks include costs to comply with unforeseen 1
significant shifts in federal and state policy, costs of complying with Order 1000 2
that exceed estimates, and interest rates. In general, Customers and the 3
Commission will determine the extent of additional work and resources required. 4
Q. HAS THE ISO TAKEN ANY ACTION TO MITIGATE THE RISK OF A 5
CHANGING INTEREST RATE ENVIRONMENT? 6
A. The ISO intends to purchase an interest rate cap for a portion of its tax-exempt 7
bond issuances. The tax-exempt bonds were issued in Massachusetts to fund the 8
refurbishing of the Main Control Center and in Connecticut to fund the 9
development of the new Back-Up Control Center. Both sets of bonds are priced 10
at a weekly variable rate. 11
The ISO intends to purchase the cap to cover the unhedged portion of its variable 12
rate debt. In other words, the ISO would not seek to cover the portion that is 13
naturally hedged by the interest income earned on the settlement float that the ISO 14
has through the normal course of participant settlement billing and payment. 15
The ISO has saved approximately $7,500,000 by opting for variable rates on its 16
tax-exempt bonds since 2005 when the ISO first issued the Massachusetts tax- 17
exempt bonds. The ISO seeks to protect that savings by purchasing the interest 18
rate cap at a rate of 2.48% (which is the price at which the ISO could have fixed 19
the Connecticut tax-exempt bonds when they were issued last year). The cap will 20


effectively serve as an insurance policy or stop loss mechanism in a changing 1
interest rate environment, and is intended to cover the ISOs interest rate exposure 2
through February 1, 2024 if rates rise significantly. 3
After consulting with its external auditors, KPMG, the ISO will amortize the 4
approximate $1,000,000 cost of the cap using a straight line method over the life 5
of the cap. This amortization would likely result in a similar annual cost if the 6
effective interest rate method was used. The operating budget impact will be 7
about $88,000/year. For 2014, the annual cost will be funded using the CEO 8
Emerging Work Allowance, as the ISO committed to the interest rate cap late in 9
the process of formulating the 2014 budget. 10
Q. PLEASE DESCRIBE THE CALCULATION OF THE 2012 TRUE-UP 11
AMOUNT. 12
A. As set forth in Section IV.A.2.2 of the Tariff, the ISO has reconciled calendar year 2012s 13
actual expenses and collections under Schedules 1, 2 and 3 of the Tariff by means of a 14
true-up. The actual difference between 2012 expenses and collections is an under- 15
collection of $1.9 million, which increases the 2014 Revenue Requirement by that 16
amount. See RCL2, Schedule 2. 17


Q. HOW IS THE 2012 TRUE-UP AMOUNT ALLOCATED AMONG THE 1
THREE SCHEDULES? 2
A. Schedule 1 has an increase of $805,723; Schedule 2 has an increase of 3
$1,871,196; and Schedule 3 has a decrease of $759,165. See RCL-2, Schedule 2. 4
ACTIVITY ACCOUNTING SYSTEM 5
Q. DESCRIBE THE ISOS ACTIVITY ACCOUNTING SYSTEM AND THE 6
EXTENT TO WHICH IT PROVIDES COST OF SERVICE 7
INFORMATION FOR EACH OF THE THREE PRIMARY SCHEDULES. 8
A. The activity accounting system was implemented at the ISOs inception in 1997 9
and refined in 1998. All operating charges recorded in the general ledger system 10
must be cross-referenced to an activity. Each department has identified its major 11
activities. Most activities are department-specific, but some activities may be 12
cross-charged if they are of a project nature. Activities within a department are 13
known as either direct activities or indirect activities. Direct activities are of 14
an operational nature and are allocated to one or more of the three schedules based 15
on a fixed percentage. This fixed allocation is provided by the department 16
manager annually in preparation for the next years budget and tariff filing. 17
Indirect activities are of an administrative nature and are allocated based on 18
current direct labor charges. In addition, the majority of activities for 19
administrative departments (Finance, Human Resources, etc.) are allocated based 20
on the total labor charges within the Company. 21


The activity accounting system is in large part a manual system, meaning that 1
timesheets and invoices are coded manually. The ISO found that it would not be 2
prudent to overly expand the system and require each employee to determine what 3
schedule they serviced through the week. Furthermore, the ISO does not pre-code 4
an employees time because duties may change often with seasonality or new 5
projects. Therefore, the allocation of activities to the three schedules is made at 6
the managerial level. 7
The activity system is not designed to track costs to individual markets or 8
transaction units. An employees time is not driven by the number of transaction 9
units or markets, but by the number of tasks and projects. 10
If the activity accounting system were expanded to provide for accounting cost in 11
more detail, it would be more costly and difficult to manage without substantially 12
increasing its accuracy. 13
Q. HOW WAS THE TARIFF SCHEDULE ALLOCATION VERIFIED? 14
A. In developing the revenue requirement for each schedule, managers with cost 15
center responsibilities are required to review the allocation of each and every 16
activity under their control as to the appropriateness of the allocation. During this 17
lengthy evaluation process, all of the activities used by the ISO are reviewed. It is 18
this activity allocation structure that formed the basis of the revenue requirements 19
for each of the three primary schedules. 20


2014 COST ALLOCATION AMONG SCHEDULES 1, 2, AND 3 1
Q. HAVE YOU PREPARED AND INCLUDED AN EXHIBIT THAT SHOWS 2
THE DEVELOPMENT OF THE COST OF SERVICE (COS) 3
ANALYSIS? 4
A. Yes. The following schedules support the COS shown in RCL-3: 5
Schedule 1 Total Cost Allocation to Schedules by Department 6
Schedule 2 Total Direct Labor Allocation to Schedules by Department 7
Schedule 3 Total Cost Allocations to Schedules by Cost Category 8
Schedule 4 Direct Labor Cost Allocations to Schedules by Cost 9
Category 10
Schedule 5 Allocation Factors by Cost Category 11
Schedule 6 Allocation of Depreciation and Amortization Expense 12
Q. WHAT IS THE ISOS MAIN EXPENSE? 13
A. As a non-profit entity that operates, but does not own, generation or transmission 14
assets, the ISOs main expense in the Core Operating Budget is personnel. As 15
shown in RCL-5, Schedule 1, the ISO has budgeted $96.9 million of the ISOs 16
2014 Core Operating Budget for Salaries and Overhead. 17
Q. WOULD YOU PLEASE DESCRIBE YOUR RCL-3? 18
A. RCL-3, Schedule 1 contains the Test Year 2014 COS for each of the three primary 19
rate schedules. The exhibit lays out in detail how ISO costs were assigned to the 20
three schedules. 21


Most activity costs consist of direct labor costs, employee benefits, and other non- 1
labor-related costs (e.g., office supplies, software, hardware, depreciation, interest, 2
consulting, etc.). For each Activity Code, both the labor-related and non-labor- 3
related costs are assigned to the rate schedule using the same allocator. 4
Q. PLEASE EXPLAIN HOW LABOR RATIOS WERE DEVELOPED AND 5
USED TO ALLOCATE COSTS IN RCL-3. 6
A. Schedule 4 of RCL-3 shows an allocation to the three schedules of all ISO direct 7
labor costs as projected for Test Year 2014. Within a given department, known 8
allocators (Alloc-Fixed) for specific cost categories were used to allocate those 9
labor costs that were specifically attributable to a schedule. The Alloc-Fixed labor 10
costs were summed for that department and all remaining labor costs within that 11
department were allocated in proportion to the summed Alloc-Fixed costs. Labor 12
costs within all departments were allocated in this manner and summed for the 13
entire company. Schedule 5 of RCL-3 summarizes the labor allocation factors or 14
labor ratios for each Activity Code. These ratios were then used to allocate 15
various cost items in Schedules 3, 4, and 6 of RCL-3. 16
Q. PLEASE SUMMARIZE YOUR PROPOSED 2014 COS RESULTS FROM 17
RCL-3 FOR EACH OF THE THREE RATE SCHEDULES. 18
A. Table 1 below summarizes the results of all the allocations contained in Schedule 19
1 of RCL-3, at Lines 47, 49 and 51. The totals demonstrate an initial 2014 20
Operating Expense Revenue Requirement (also provided on line 10 to RCL-2, 21


Schedule 2, page 1) increased by the true-up amount (also provided on line 14 to 1
RCL-2, Schedule 2, page 1) to result in the total 2014 Revenue Requirement (also 2
provided on line 17 to RCL-2, Schedule 2, page 1). 3
Description Test Year True-Up Total
(a) (b) (c) (d)
Schedule 1, Scheduling, SystemControl and Dispatch Service $ 38,455,349 $ 805,723 $ 39,261,072
Schedule 2, Energy Administration Service 78,752,397 1,871,196 80,623,593
Schedule 3, Reliability Administration Service 52,116,450 (759,165) 51,357,285
Total $ 169,324,196 $ 1,917,754 $ 171,241,950
Table 1
2014 Cost of Service Results (1)
(1) FromExhibit 3 (RCL-3), Schedule 1.0.
4
Q. EXCLUDING ANY TRUE-UP AMOUNTS, HOW DO THE COS RESULTS 5
SHOWN IN SCHEDULE 1 OF RCL-3 COMPARE WITH THE TEST 6
YEAR 2013 COS RESULTS, INCLUDED IN LAST YEARS FILING, ON 7
WHICH THE CURRENT ISO RATES ARE BASED? 8
A. Table 2 below compares, beforetaking into account any true-ups, the 2014 COS 9
results from Schedule 1 of RCL-3 to the 2013 COS results. Table 2 demonstrates 10
how, excluding the true-up amounts, the 2014 COS constitutes a $5.3 million 11
increase from the 2013 COS accepted by the Commission last year. 12


Description Total Schedule 1 Schedule 2 Schedule 3
(a) (b) (c) (d) (e)
2014 COS (1) $169,324,196 $38,455,349 $78,752,397 $52,116,450
2013 COS (2) $164,041,738 $39,659,036 $73,841,673 $50,541,029
Difference -$ $5,282,458 ($1,203,687) $4,910,724 $1,575,421
-% 3.2% -3.0% 6.7% 3.1%
ISO Tariff Schedules
(1) From Table 1, Column (b).
(2) From Exhibit 3 (RCL-3), Sch. 1.0, Ln. 46, in FERC Dkt. No. ER13-185-000.
Table 2
Comparison for Cost of Service Results
(Before True-Ups)
1
Q. HAVE YOU IDENTIFIED SPECIFIC ACTIVITY ITEMS THAT GIVE 2
RISE TO THE INCREASES AND/OR DECREASES SHOWN ABOVE 3
FOR THE THREE SCHEDULES? 4
A. Yes. Table 3 below highlights key activity items from Test Year 2014 allocated 5
among the three primary schedules by cost category (RCL-3, Schedule 3), along 6
with various depreciation/amortization items (RCL-3, Schedule 6), which changed 7
from 2013. The identified activity items account for the majority of the cost shifts 8
within each of the three schedules. 9


Activity Description Total Schedule1 Schedule2 Schedule3
Code (a) (b) (c) (d) (e) (f)
Test Year 2014
Various Depreciation/Amortization 28,305,643 $ 5,767,756 13,225,641 9,312,246
6544 Infragrad (FBI) 527,128 113,586 272,794 140,748
6552 IT - Security 595,388 128,294 308,120 158,974
6623 IT - Asset Management 399,966 86,185 206,987 106,794
12664 BuildingMaintenance 4,019,745 866,176 2,080,262 1,073,307
14715 EIPC - Non DOE Funded/Unallowable 155,158 - - 155,158
16121 FCM Market Monitoring 145,311 - - 145,311
16419 Asset Registration Implemented 141,682 - 141,682 -
16420 Asset Registration Reivew 141,682 - 141,682 -
16421 C10/C30 Audits 184,024 - 154,580 29,444
16424 Demand ResourceAudits 212,523 - 212,523 -
18150 SP - Regional Transmission Expansion Plan 470,876 353,157 117,719 -
18301 TR - NEPOOL AdministrativeSupport - Schedule1 Tariff 49,665 49,665 - -
18335 TR - Regulatory Activities - NPCC 57,897 57,897 - -
18337 TR - Regulatory Activities 82,247 82,247 - -
18401 SP - Regional Activities 258,964 258,964 - -
18343 FERC Order 1000 1,304,576 - - 1,304,576
19012 Changes to theForward Capacity Market 792,795 - - 792,795
19013 Changes Relevant to Fuel Security 632,433 - 505,947 126,487
21009 Increased Scopeof Impact Analysis 400,000 104,000 264,000 32,000
21901 Day Ahead Market Administration 299,931 - 299,931 -
21902 Real TimePriceVerification 299,931 - 299,931 -
21953 FCM Monthly Administration 177,102 - - 177,102
21956 Changes in Supply Offers (Hourly Reoffers) 756,377 - 756,377 -
25822 SystemRestoration and Blackstart ResourceMgmnt 168,490 168,490 - -
Totals 40,579,534 $ 8,036,416 $ 18,988,176 $ 13,554,942 $
Test Year 2013
Various Depreciation/Amortization 28,424,187 $ 5,957,116 12,084,951 10,382,120
6544 Infragrad (FBI) 54,810 11,811 28,365 14,635
6552 IT - Security 79,557 17,143 41,172 21,243
12664 BuildingMaintenance 2,802,785 603,945 1,450,472 748,368
16121 FCM Market Monitoring 711,453 - - 711,453
16421 C10/C30 Audits - - - -
18150 SP - Regional Transmission Expansion Plan 502,923 377,192 125,731 -
18301 TR - NEPOOL AdministrativeSupport - Schedule1 Tariff 104,899 104,899 - -
18335 TR - Regulatory Activities - NPCC 165,299 165,299 - -
18337 TR - Regulatory Activities 232,426 232,426 - -
18401 SP - Regional Activities 299,858 299,858 - -
18343 FERC Order 1000 - - - -
19012 Changes to theForward Capacity Market - - - -
19013 Changes Relevant to Fuel Security - - - -
21009 Increased Scopeof Impact Analysis - - - -
21901 Day Ahead Market Administration 453,099 - 453,099 -
21902 Real TimePriceVerification 517,827 - 517,827 -
21953 FCM Monthly Administration -
21956 Changes in Supply Offers (Hourly Reoffers) - - - -
25822 SystemRestoration and Blackstart ResourceMgmnt 680,210 680,210 - -
Totals 35,589,679 $ 8,494,737 $ 15,082,741 $ 12,012,201 $
Test Year 2014 Costs Minus Test Year 2013 Costs
Various Depreciation/Amortization (118,544) $ (189,360) 1,140,690 (1,069,874)
6544 Infragrad (FBI) 472,318 101,775 244,430 126,113
6552 IT - Security 515,831 111,151 266,948 137,731
12664 BuildingMaintenance 1,216,960 262,231 629,790 324,939
16121 FCM Market Monitoring (566,142) - - (566,142)
16421 C10/C30 Audits 184,024 - 154,580 29,444
18150 SP - Regional Transmission Expansion Plan (32,047) (24,035) (8,012) -
18301 TR - NEPOOL AdministrativeSupport - Schedule1 Tariff (55,234) (55,234) - -
18335 TR - Regulatory Activities - NPCC (107,402) (107,402) - -
18337 TR - Regulatory Activities (150,179) (150,179) - -
18401 SP - Regional Activities (40,894) (40,894) - -
18343 FERC Order 1000 1,304,576 - - 1,304,576
19012 Changes to theForward Capacity Market 792,795 - - 792,795
19013 Changes Relevant to Fuel Security 632,433 - 505,947 126,487
21009 Increased Scopeof Impact Analysis 400,000 104,000 264,000 32,000
21901 Day Ahead Market Administration (153,168) - (153,168) -
21902 Real TimePriceVerification (217,896) - (217,896) -
21953 FCM Monthly Administration 177,102 - - 177,102
21956 Changes in Supply Offers (Hourly Reoffers) 756,377 - 756,377 -
25822 SystemRestoration and Blackstart ResourceMgmnt (511,720) (511,720) - -
Totals 4,989,855 $ (458,320) $ 3,905,435 $ 1,542,741 $
All Other Unidentified Changes 292,603 $ (745,366) $ 1,005,289 $ 32,679 $
Total Change in Cost of Service 5,282,458 $ (1,203,687) $ 4,910,724 $ 1,575,421 $
% of Difference shown on Table 2 94.46% 38.08% 79.53% 97.93%
ISO Tariff Schedules
Table 3
Examples of Differences in 2014 Operating Expenses


Q. PLEASE EXPLAIN IN FURTHER DETAIL HOW THE REVENUE 1
REQUIREMENTS CHANGED FOR EACH SCHEDULE FROM THOSE 2
UTILIZED IN THE FILING SUPPORTING THE 2013 RATE TO THOSE 3
UTILIZED HERE FOR TEST YEAR 2014. 4
A. Schedule 1: The decrease in the Revenue Requirement for Schedule 1 results 5
from a reallocation of resources from transmission planning to Order No. 1000 6
compliance (Schedule 3) and from system operations to winter and fuel security 7
programs (Schedules 2 and 3). In 2014, there will also be a small reduction in 8
Schedule 1 depreciation expense as certain projects that were allocated 9
exclusively to Schedule 1 become fully depreciated (e.g., Outage Coordination 10
Economic Analysis Tool). These decreases are partially offset by 2014 cost 11
increases and changes that impact all three schedules, including cyber security, 12
information technology asset management, and new operating costs of the BCC. 13
Schedule 2: The increase in the Schedule 2 Revenue Requirement is due in part 14
to funding for new initiatives that have a major impact on Schedule 2 (e.g., Intra- 15
Day Offers, increased impact analyses, and winter and fuel security initiatives). 16
Certain resources were also reallocated to Schedule 2 for work related to demand 17
response registration, review and auditing, divisional accounting, and integration 18
of variable resources. Schedule 2 also has increased depreciation costs for 19
projects, including the Markets Database Infrastructure Update, and for costs 20
allocated to all three schedules (e.g., for operation of the new BCC). 21


Schedule 3: The increase in the Schedule 3 Revenue Requirement is due to 1
anticipated costs of complying with Order No. 1000, the reallocation of resources 2
to Schedule 3 for work on FCM performance incentives, and for increased costs 3
allocated to all three schedules (see above). 4
THE ISO RATE DESIGN AND ESCALATION FACTORS 5
Q. HOW DID YOU DEVELOP THE ESCALATION FACTORS? 6
A. Consistent with the practice reflected in the filings establishing the ISOs rates to 7
collect its administrative costs for 1999-2013, escalation factors rely on 8
information contained in the 2013-2022 Forecast Report of Capacity, Energy, 9
Loads and Transmission (CELT Report, dated May 2013). The CELT Report 10
contains actual and estimated energy and peak loads for 2013-2022. The ISO also 11
relied on information in the ISO markets system for the 12-month period ending 12
J uly 2013. The development of the escalation factors is shown in RCL-7, 13
Schedule 1. 14
Q. PLEASE OUTLINE THE CURRENT RATE DESIGN BEFORE 15
DESCRIBING THE VARIOUS ESCALATION FACTORS. 16
A. As previously indicated, Section IV.A of the Tariff has three rate schedules to 17
cover the ISOs expenses for providing its three services: Schedule 1 - 18
Scheduling Service; Schedule 2 Energy Administration Service; and Schedule 3 19
Reliability Administration Service. 20


Schedule 1 1
The Schedule 1 revenue requirement is allocated 100% to Network Load and the 2
Reserved Capacity of Through and Out Service (including Unauthorized Use). 3
Schedule 1 revenues collected from Through and Out Service Customers are 4
credited to each Network Customer that month in proportion to each Network 5
Customers Monthly Regional Network Load in that month. 6
Schedule 2 7
The Schedule 2 revenue requirement is allocated 15% to Transaction Units 8
(TUs) and 85% to Volumetric Measures (VMs), subject to the special true-up 9
described below. TUs measure the frequency and duration of activity and are 10
indifferent to the size (e.g., capacity) of any particular transaction. Conversely, 11
VMs seek to capture a customers physical reliance on the system administered 12
by the ISO and thus the benefit received. 13
A. Transaction Units 14
Schedule 2 currently utilizes three types of TUs: those associated with Real-Time 15
Market Transactions (Energy TU Based Charges), those associated with 16
Increment Offers and Decrement Bids, and those associated with FTR Auction 17
Submitted and Cleared Bids. 18
Energy TUs equal the sum per month of a Customers Bilateral Contract Block- 19
Hours, Demand Bid Block-Hours, Asset Related Demand Bid Block-Hours, 20
Supply Offer Block-Hours and Energy Non-Zero Spot Market Settlement Hours. 21


Under the ISOs current rate design, a Customers total monthly Energy TUs are 1
priced under a three-tiered declining block rate structure. Under this regime, the 2
highest unit rate applies to the first 12,500 Energy TUs incurred in a month; the 3
Customers next 27,000 Energy TUs are priced approximately 10% lower; and the 4
balance of monthly Energy TUs, i.e., those in excess of 39,500, are priced at an 5
additional savings of approximately 10% on average. 6
TU Charges Based on Increment Offers and Decrement Bids are assessed based 7
on both of the following: (i) a charge multiplied by the total number of Increment 8
Offers and Decrement Bids submitted, plus (ii) a charge multiplied by the total 9
number of Increment Offers and Decrement Bids that clear the Day-Ahead Energy 10
Market. This category is sometimes referred to as virtual activity, 11
distinguishing it from physical activity. 12
TU Charges Based on FTR Auction Submitted and Cleared Bids are assessed on 13
both of the following: (i) a charge multiplied by the total number of FTR auction 14
bids submitted for that period, plus (ii) a charge multiplied by the total number of 15
FTR auction bids cleared for that period. The FTR charges are designed to recoup 16
the costs the ISO incurs for administering the FTR auctions. The FTR revenue 17
offsets other Schedule 2 TU charge revenues. 18


B. Volumetric Measures 1
Schedule 2 Volumetric Measures consist of the sum of a Customers Monthly 2
Real-Time Load Obligation and Monthly Real-Time Generation Obligation 3
(measured in megawatt hours, MWh). Under the ISOs current rate regime, 4
Schedule 2 VMs are priced under a three-tiered declining block rate structure 5
wherein the highest unitized rate is assessed to the first 250,000 MWh each 6
month; the Customers next 1,250,000 MWh are priced at a discount of 7
approximately 10% from the tier-1 unitized rate; and VMs in excess of 1,500,000 8
MWh incur the lowest unitized monthly rate. 9
Schedule 3 10
Schedule 3 allocates internal load activity based on Real-Time NCP [Non- 11
Coincident Peak] Load Obligation. For Exports, Schedule 3 assesses a volumetric 12
(per MWh) charge. Specifically, the ISO divides the Schedule 3 Revenue 13
Requirement by the real-time load obligation forecasted for the upcoming year in 14
the most recent CELT Report. The remaining revenue requirement for Schedule 3 15
(i.e., net of that allocated to Exports) is then divided by the total Real-Time NCP 16
Load Obligation forecast to yield the unitized rate per kW-month. 17
Q. PLEASE EXPLAIN THE ESCALATION FACTORS UTILIZED TO 18
DEVELOP THE BILLING DETERMINANTS FOR 2014. 19
A. The Schedule 1 billing determinants for August through December 2013 were left 20
flat and the determinants for 2014 were increased by 1.4%, consistent with the 21


CELT report data, other load data, and transaction data through J uly 2013. See 1
column (c) of RCL-7, Schedule 2. The volumetric measures in Schedule 2 and 2
the Schedule 3 billing determinant related to NCP Load Obligation, which (like 3
the Schedule 1 billing determinants) are also based on load data, were treated the 4
same as the Schedule 1 determinants. These results are presented in columns (i) 5
and (j), respectively, of RCL-7, Schedule 2. 6
The Schedule 2 transaction unit determinants for Energy TUs, virtual transactions 7
and FTRs were left flat. The decision regarding Energy TUs was based on a 8
review of the volume of transactions, which has been consistent for several years 9
(see the data for 2013 in column (d) of RCL-7, Schedule 2). 10
The numbers of virtual transactions have decreased and are not expected to 11
rebound, given transmission system improvements that have reduced the ability to 12
profit from these transactions. The data regarding virtual transactions in 2013 13
appears in columns (e) and (f) of RCL-7, Schedule 2. Table 4 below provides 14
historic Virtual Energy TU data from J anuary 2011 through J uly 2013. 15


Table 4 1
0
10,000
20,000
30,000
40,000
50,000
60,000
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
C
l
e
a
r
e
d
S
u
b
m
i
t
t
e
d
Submi tted and Cl eared Vi rtual Energy TUs
Submitted
Cleared
2
The ISOs analysis on Schedule 2 FTR Auction Submitted Bids through J uly 2013 3
indicates that the billing determinant should remain flat since the amount of 4
submitted bids has decreased and is not expected to rebound, given factors 5
including transmission system improvements. Table 5 presents actual FTR data 6
from J anuary 2011 - J uly 2013, and RCL-7, Schedule 2, columns (g) and (h) also 7
show data for 2013. 8


Table 5 1
0
7,000
14,000
21,000
28,000
35,000
42,000
49,000
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
100,000
C
l
e
a
r
e
d
S
u
b
m
i
t
t
e
d
Submitted and Cleared FTR TUs (Bids)
Submitted
Cleared
2
Consistent with the downward trend in ISO Schedule 2 virtual activity and FTR 3
auction bids, export activity has also decreased in recent years. To calculate the 4
billing determinant in Schedule 3 for exports, the ISO has maintained the 5
estimated values for the same period in the previous year. See column (k) of 6
RCL-7, Schedule 2. 7
THE ISO RATE DESIGN AND BILLING DETERMINANTS 8
Q. DOES THE ISO PROPOSE ANY CHANGES TO THE EXISTING RATE 9
DESIGNS FOR SCHEDULES 1, 2, AND 3? 10
A. There are no changes to the rate design. 11


Q. PLEASE DESCRIBE THE SCHEDULE 1 RATE CALCULATION. 1
A. RCL-7, Schedule 3, lines 1 through 3 show the Schedule 1 Billing Determinants 2
and the Revenue Requirement allocated thereto. Dividing the Revenue 3
Requirement by the forecasted billing units yields the rate for 2014 of 4
$0.00021/kW-hour. 5
A. Schedule 2 employs a declining blocked rate structure that is applicable to both 7
Energy TUs and VMs. The three-tiered declining block structure is discussed 8
earlier in my testimony. Increment Offers and Decrement Bid TUs and FTR TUs 9
incur unitized charges. RCL-7 (Schedule 3) and Table 6 (below) provide the 10
Schedule 2 rates proposed for 2014. 11


TABLE 6
Description TY 2014
(a) (b)
Transaction Units
INC Offers/DEC Bids
Submitted $ 0.00500 /Offer or Bid
Cleared $ 0.06000 /Offer or Bid

Financial Transmission Rights
Submitted $ 1.23712 /Bid
Cleared $ 1.76776 /Bid

Energy Transaction Units
Block 1 - 1
st
12,500 TUs $ 0.73167 /TU-hour
Block 2 Next 27,000 TUs $ 0.66515 /TU-hour
Block 3 Over 39,500 TUs $ 0.59864 /TU-hour

Volumetric Measures
Block 1 - 1
st
250,000 MWH $ 0.26149 /MWh
Block 2 Next 1,250,000 MWH $ 0.23772 /MWh
Block 3 Over 1,500,000 MWH $ 0.21395 /MWh

Q. PLEASE EXPLAIN HOW THE RATES FOR EACH BLOCK ARE 1
CALCULATED. 2
A. The rate components in all cases reflect an approximate 10% differential from the 3
average rate. 4
A. RCL-7, Schedule 3 at lines 30 through 33 and Table 7 below list the billing rate 6
calculation. Exports are assessed a unitized charge per MWh based on the 7
Schedule 3 Revenue Requirement using the CELT Reports real-time load 8
obligation forecast for 2014. The export rate is then applied to the total MWh of 9


Exports forecasted for the test year to determine the portion of the Schedule 3 1
Revenue Requirement assessed to exports. The remaining revenue requirement 2
for Schedule 3 (i.e., net of that allocated to exports) is then divided by the total 3
Real-Time NCP Load Obligation forecast to yield the unitized rate per kW-month. 4

TABLE 7

Description TY 2014
Amount %

Revenue Requirement ($) $ 51,357,285 100.0%

Real-Time NCP Load Obligation $ 49,292,927 96.0%

Export Rate $ 2,064,358 4.0%

Billing Units

Real-Time NCP Load Obligation 277,089,079 /kW-Mo.

Export Rate 5,579,347 /MWh

Rates

Real-Time NCP Load Obligation $ 0.17790 /kW-Mo.

Rate on Exports $ 0.37 /MWh

5
RATE SUMMARY 6
Q. WOULD YOU PLEASE SUMMARIZE THE RATES FOR 2014 THAT 7
YOU ARE SPONSORING? 8
A. Yes. These rates are summarized in Table 8. 9


Tariff Schedule Jan. 1, 2014
(a) (b)
Schedule 1
Network Load (per kW-hour) $0.00021
Schedule 2
TU Bids (Virtual Inc/Dec)
Submitted $0.00500
Cleared $0.06000
FTR Bids
Submitted $1.23712
Cleared $1.76776
TU's
Block 1 - 1st 12,500 $0.73167
Block 2 - Next 27,000 $0.66515
Block 3 - Over 39,500 $0.59864
Volumetric
Block 1 - 1st 250,000 $0.26149
Block 2 - Next 1,250,000 $0.23772
Block 3 - Over 1,500,000 $0.21395
Schedule 3
R-T NCP Load Obligation $0.17790
Export Rate $0.37000
(1) FromExh 3, RCL-7, Sch 3.
Table 8
2014 Rate Components (1)
1
Q. HAVE YOU TAKEN INTO ACCOUNT ANY REVENUE SHORTFALL 2
ATTRIBUTABLE TO TUs USED IN SCHEDULE 2? 3
A. Yes. In the event of a revenue shortfall attributable to TUs, the shortfall 4
allocation has two components. This first component allocates the first 50% of 5
the shortfall to Schedule 2 VMs rather than the usual 15/85 allocation of Schedule 6


2 revenue requirements between TUs and VMs, respectively. The second 1
component increases the percentage of the shortfall allocated to VMs by an 2
additional percentage for each percentage decrease which occurred between the 3
number of TUs used in the current true-up (based on year-to-date actual data 4
through August of the current year) and the number of TUs that the ISO had used 5
in the original projection of the rates for that year. 6
As shown in RCL-7, Schedule 6, the final 2012 amount is an over-collection of 7
$150,766. Accordingly, there is no variation for 2014 to the 15/85 allocation of 8
the Schedule 2 revenue requirement between TUs and VMs. 9
FIXED FEES 10
Q. DO YOU HAVE ANY OTHER COMMENTS REGARDING THE RATES 11
INCLUDED IN THE PROPOSED 2013 TARIFF? 12
A. Yes. Schedule 3 includes certain RAS Fees that are applicable to Transmission 13
Customers who are non-Market Participants. This fee is currently $2.88 (hourly). 14
For 2014, I am proposing to increase this hourly fee to $2.94. 15
Q. PLEASE EXPLAIN HOW YOU DERIVED THE PROPOSED HOURLY 16
RAS FEE. 17
A. The proposed RAS Fee was developed by applying a ratio of the Schedule 3 18
forecasted revenue requirement for 2014 to the Schedule 3 forecasted revenue 19
requirement for 2002 to the 2002 RAS Monthly Fee ($671 x 20


($51,357,285/$16,035,649) =$2,149.01) and breaking that down to an hourly 1
rate, which for 2014 is $2.94. 2
Q. DID YOU DEVELOP THE APPROPRIATE RAS FEES FOR THOSE 3
CUSTOMERS WHO TAKE SERVICE FOR PERIODS OF LESS THAN 4
ONE MONTH? 5
A. Yes. These charges are shown below in Table 9. 6

Table 9
RAS Fees
Line
No. Item Current
Proposed
J an. 1, 2014
(a) (b) (c)

1 Monthly Calculation $ 2,100.34 $ 2,149.01

2 Hourly Fee $ 2.88 $ 2.94

7
Q. UNDER THE RATES PROPOSED IN THIS FILING, WHAT HAPPENS 8
TO THE REVENUE DERIVED FROM THESE RAS FEES? 9
A. Any revenue derived from the RAS Fees will be credited back on a monthly basis 10
to all Market Participants who take service under Schedule 3 in proportion to the 11
total charges incurred by the Market Participants for that month. 12

1
Exhibit 3
RCL - 2
Schedule 2
Page 1 of 2 ISO NEW ENGLAND INC.
(in thousands of dollars)
Line No.
Operating Expense Budget:
1 Operating Budget $137,772.7
2
3
4 Depreciation 28,406.2
5 Interest 3,145.3
6 31,551.5
7
8 Total 2014 Operating Expense Budget $169,324.2
9
10 2014 Operating Expense Revenue Requirement $169,324.2
11
12 True-Up Amount
13
14 2012 (Over)/ Under Collection 1,917.8 $
15
16
17 Total 2014 ISO Revenue Requirement $171,242.0
Depreciation and interest expense
2014 REVENUE REQUIREMENT
Exhibit 3
RCL - 2
Schedule 2
Page 2 of 2
ISO New England Inc.
2012 True-Up Amount
Line No. Schedule
Total 1 2 3
1 2012 Total Operating Expense 147,878,597 $ 35,635,105 $ 66,262,624 $ 45,980,868 $
2 2012 Total Collections 145,960,842 $ 34,829,382 $ 64,391,427 $ 46,740,033 $
3
4 2012 Total (Over) / Under Collection 1,917,754 $ 805,723 $ 1,871,196 $ (759,165) $
Exhibit 3 (RCL-3)
Exhibits For Robert C. Ludlow
ISO NEW ENGLAND INC.
FERC DOCKET NO. ER14-___-000
COST ALLOCATIONS
TEST YEAR 2014
Exhibit 3 (RCL-3)
Schedule 1.0
(1) From Exhibit 3 (RCL-3), Schedule 3.0.
Line Department
No. Description Total Schedule 1 Schedule 2 Schedule 3
(a) (b) (c) (d) (e)
1 Administration-CEO 7,523,381 $ 1,621,140 $ 3,893,432 $ 2,008,809 $
2
3 Finance 49,988,690 9,296,347 21,684,587 19,007,755
4
5 Building Services 4,047,595 872,177 2,094,675 1,080,743
6
7 Enterprise Risk Management 1,767,083 497,661 750,317 519,105
8
9 Human Resources 4,633,640 998,458 2,397,960 1,237,223
10
11 Legal Department 9,504,313 2,057,735 4,529,436 2,917,143
12
13 Internal Audit 1,772,997 290,869 1,121,702 360,426
14
15 ISO Operations
16 COO-Adm 3,065,009 410,477 1,240,376 1,414,156
17 System Operations - Administration 410,156 141,668 190,394 78,094
18 Operations 10,251,738 3,022,786 5,488,442 1,740,510
19 Reliability and Operations Services 817,341 305,951 166,862 344,529
20 Reliability and Operations Compliance 1,254,149 543,128 387,077 323,944
21 Operations Support Services 6,078,427 3,098,409 1,325,351 1,654,667
22 System Operations Support 1,334,221 2,590 269,069 1,062,562
23 Market Operations - Adm 893,101 12,987 612,517 267,598
24 Market Monitoring 3,073,422 - 2,049,678 1,023,744
25 Market Operations 2,822,812 17,710 2,554,282 250,820
26 Market Anaylsis & Settlements 2,502,217 304,318 1,179,447 1,018,452
27 Market Operations Support Services 1,211,434 101,379 901,182 208,873
28 Market Services 2,975,840 311,705 2,366,165 297,970
29 Market Training and Reliability Contracts 622,836 - 311,418 311,418
30 System Planning 1,270,617 813,957 267,901 188,760
31 Resource Adequacy 4,055,989 256,698 981,952 2,817,340
32 Transmission Planning 6,586,082 5,281,505 - 1,304,576
33 Program Management 1,968,508 508,498 827,561 632,450
34 Business Architecture and Technology 2,169,813 467,552 1,122,902 579,359
35 Market Development Administration 3,657,801 597,102 1,965,888 1,094,811
36 Market Design 466,791 100,113 241,294 125,384
37 Demand Resource Strategy 508,330 109,535 263,067 135,729
38 IT Management 4,445,068 1,032,915 2,229,222 1,182,932
39 IT System/Network & Desktop 9,318,934 1,580,744 5,018,768 2,719,422
40 IT Enterprise Applications Support 7,864,174 928,906 5,073,568 1,861,701
41 IT Enterprise Applications Development 1,442,194 412 1,153,060 288,723
42 IT Energy Management Systems 4,808,101 1,714,640 2,300,629 792,832
43 IT Cyber Security 2,046,011 440,875 1,058,833 546,303
44 IT Power System Modeling Management 2,165,379 714,403 733,385 717,591
45 Total ISO Operations 90,086,498 22,820,963 42,280,288 24,985,247
46
47 Total ISO Revenue Requirement 169,324,196 $ 38,455,349 $ 78,752,397 $ 52,116,450 $
48 True-up from 2012 1,917,754 805,723 1,871,196 (759,165)
49 Total True-up 1,917,754 $ 805,723 $ 1,871,196 $ (759,165) $
50
51 ISO Net Revenue Requirement 171,241,950 $ 39,261,072 $ 80,623,593 $ 51,357,285 $
Self-Funding Tariff
TOTAL COST ALLOCATION TO SCHEDULES BY DEPARTMENT
TEST YEAR 2014
Exhibit 3 (RCL-3)
Schedule 2.0
Page 1 of 1
Line Department
No. Description Total Schedule 1 Schedule 2 Schedule 3
(a) (b) (c) (d) (e)
1 Administration-CEO 2,976,197 $ 641,312 $ 1,540,215 $ 794,671 $
2
3 Finance 10,561,175 2,279,867 5,464,331 2,816,976
4
5 Building Services 472,472 101,808 244,509 126,154
6
7 Enterprise Risk Management 1,600,955 454,084 676,559 470,313
8
9 Human Resources 2,260,870 487,173 1,170,025 603,672
10
11 Legal Department 6,000,628 1,288,064 2,684,945 2,027,619
12
13 Internal Audit 1,109,537 223,004 610,202 276,331
14
15 ISO Operations
16 COO-Adm 1,915,371 390,419 716,488 808,463
17 System Operations - Administration 208,448 71,998 96,762 39,689
18 Operations 9,969,888 2,933,127 5,346,079 1,690,683
19 Reliability and Operations Services 749,809 299,957 164,776 285,077
20 Reliability and Operations Compliance 1,230,549 531,348 386,997 312,204
21 Operations Support Services 5,991,163 3,044,771 1,305,123 1,641,269
22 System Operations Support 1,326,221 - 265,244 1,060,977
23 Market Operations - Adm 851,101 12,987 583,117 254,998
24 Market Monitoring 2,683,046 - 1,782,295 900,751
25 Market Operations 2,351,909 17,710 2,084,039 250,159
26 Market Anaylsis & Settlements 2,481,551 301,262 1,169,380 1,010,909
27 Market Operations Support Services 1,200,189 101,379 889,954 208,856
28 Market Services 2,396,312 303,385 1,874,564 218,363
29 Market Training and Reliability Contracts 621,196 - 310,598 310,598
30 System Planning 1,136,210 734,353 236,287 165,570
31 Resource Adequacy 3,499,916 248,430 973,582 2,277,903
32 Transmission Planning 4,954,766 4,417,625 - 537,140
33 Program Management 1,717,595 482,704 704,357 530,535
34 Business Architecture and Technology 1,916,686 413,008 991,906 511,772
35 Market Development Administration 3,059,273 454,244 1,598,848 1,006,181
36 Market Design 458,629 98,825 237,345 122,458
37 Demand Resource Strategy 365,044 78,660 188,915 97,470
38 IT Management 3,775,008 888,530 1,882,458 1,004,020
39 IT System/Network & Desktop 4,670,588 778,358 2,398,547 1,493,682
40 IT Enterprise Applications Support 4,054,639 591,078 2,468,823 994,738
41 IT Enterprise Applications Development 1,436,306 - 1,149,045 287,261
42 IT Energy Management Systems 2,813,008 948,131 1,412,802 452,075
43 IT Cyber Security 1,197,735 258,088 619,841 319,806
44 IT Power System Modeling Management 1,698,910 536,973 552,602 609,335
45 Total ISO Operations 70,731,067 18,937,351 32,390,774 19,402,942
46
47 Total ISO Direct Labor 95,712,902 $ 24,412,662 $ 44,781,561 $ 26,518,678 $
Self-Funding Tariff
TOTAL DIRECT LABOR ALLOCATION TO SCHEDULES BY DEPARTMENT
TEST YEAR 2014
Exhibit 3 (RCL-3)
Schedule 3.0
Page 1 of 7
Line Allocation
No. No. Description Factor (1) Total (2) Schedule 1 Schedule 2 Schedule 3
(a) (b) (c) (d) (e) (f) (g)
1 307 Administration-CEO
2 12651 Adm/Finance/HR - Indirect Administrative Support Total Dir Labor 7,549,821 $ 1,626,837 $ 3,907,115 $ 2,015,868 $
3 12652 Adm/Finance/HR - NEPOOL Committee Support Total Dir Labor (45,903) (9,891) (23,755) (12,257)
4 12654 Adm/Finance/HR - National Committee Support Total Dir Labor 19,463 4,194 10,072 5,197
5 Total 7,523,381 1,621,140 3,893,432 2,008,809
6
7 302 Finance
8 11601 Payroll Administration Total Dir Labor 282,845 60,948 146,375 75,522
9 11701 Accounts Payable Total Dir Labor 148,035 31,899 76,610 39,527
10 11702 Procurement Total Dir Labor 380,662 82,025 196,997 101,640
11 11901 Billing for Transmission and Energy Settlements Total Dir Labor 56,394 12,152 29,185 15,058
12 12001 Budgeting and Forecasting Total Dir Labor 381,467 82,199 197,413 101,855
13 12005 Credit Admininstration Total Dir Labor 360,060 77,586 186,335 96,139
14 12012 Forward Capacity Market Production Alloc-Fixed - - - -
15 12015 BCC Construction Total Dir Labor 585,535 126,171 303,021 156,343
16 12101 Ledger Closing, Financial Statements and Tax Reporting Total Dir Labor 458,205 98,734 237,126 122,345
17 12201 Treasury and Cash Management Total Dir Labor 3,218,443 693,511 1,665,581 859,353
18 25554 Generation Information System Alloc-Fixed 17,665 7,949 7,949 1,767
19 92004 Depreciation Expense 2004 Assets Alloc-Fixed 56,660 8,988 31,377 16,294
21 92006 Depreciation Expense 2006 Assets Total Dir Labor 570,895 123,028 295,438 152,429
22 92007 Depreciation Expense 2007 Assets Total Dir Labor 168,997 36,419 87,456 45,122
25 92010 Depreciation Expense 2010 Assets Alloc-Fixed 1,549,852 499,436 661,498 388,919
26 92011 Depreciation Expense 2011 Assets Alloc-Fixed 6,381,461 1,289,786 3,120,888 1,970,787
30 99707 Amortization of Land Recovery Alloc-Fixed 40,561 7,841 14,431 18,289
31 99995 NPCC/NERC Dues Alloc-Fixed 5,322,624 - - 5,322,624
32 99996 Operating Contingency Total Dir Labor 700,000 150,836 362,258 186,906
33 99996 Operating Contingency Total Dir Labor 1,100,000 237,028 569,262 293,710
34 99998 Payroll & Other Accruals Total Dir Labor 8,630,548 1,859,712 4,466,403 2,304,432
35 Total 49,988,690 9,296,347 21,684,587 19,007,755
36
37 108 Building Services
38 12664 Building Maintenance Total Dir Labor 4,019,745 866,176 2,080,262 1,073,307
39 12668 Building Maintenance - Offsite Temporary Offices Total Dir Labor 27,850 6,001 14,413 7,436
40 Total 4,047,595 872,177 2,094,675 1,080,743
41
42 310 Enterprise Risk Management
43 22701 ERM -Enterprise Risk Mgmnt - Admn Alloc-Fixed 112,789 37,559 37,559 37,671
44 22702 ERM -Enterprise Risk Mgmnt - Initia Alloc-Fixed 155,085 51,643 51,643 51,798
45 22703 ERM-Bus Cont Pl Prog Admin & Support Alloc-Fixed 28,197 9,390 9,390 9,418
46 22704 ERM - Record Retention Services Alloc-Fixed 81,887 27,268 27,268 27,350
47 22705 ERM - Corporate Scorecard Alloc-Fixed 31,376 10,448 10,448 10,480
48 22706 ERM Business Process Maintenance Alloc-Fixed 43,926 17,571 13,178 13,178
49 22708 ERM Adminstration Total Dir Labor 31,376 6,761 16,237 8,378
50 22709 ERM Management Total Dir Labor 12,550 2,704 6,495 3,351
51 22710 Employee Development Total Dir Labor 81,990 17,667 42,431 21,892
52 22711 FAP Admin - FCM Cap Adjustments Total Dir Labor 32,548 7,014 16,844 8,691
53 22712 FAP Admin - Risk Policy Assessments Total Dir Labor 15,688 3,380 8,119 4,189
54 22713 FAP Admin - MEC/Financials Total Dir Labor 39,534 8,519 20,459 10,556
55 22714 FAP Analysis Total Dir Labor 75,302 16,226 38,970 20,106
56 22715 FAP Rules / regulatory Total Dir Labor 37,651 8,113 19,485 10,053
57 22716 FAM Rebuild Total Dir Labor 15,688 3,380 8,119 4,189
58 22717 3rd Party FTRs Total Dir Labor 12,550 2,704 6,495 3,351
59 22718 CAPA 2.0 Total Dir Labor 87,853 18,931 45,465 23,457
60 22719 Human Performance Improvement Total Dir Labor 25,101 5,409 12,990 6,702
61 22720 Business Process Change Management Total Dir Labor 50,202 10,817 25,980 13,404
62 22721 Corp Strategic Risk Total Dir Labor 25,101 5,409 12,990 6,702
63 22722 Corp Strategic Plan Total Dir Labor 25,101 5,409 12,990 6,702
64 22723 IRC ERM group Total Dir Labor 1,251 270 648 334
65 22724 FEAP Total Dir Labor 1,255 270 649 335
66 22726 Project Risk Management Meeting Total Dir Labor 7,476 1,611 3,869 1,996
67 22727 ERM Business Analysis Total Dir Labor 81,578 17,578 42,217 21,782
68 23003 Safety & Security Total Dir Labor 1,255 270 649 335
69 23006 Business Continuity Planning Total Dir Labor 34,514 7,437 17,861 9,215
70 25006 ERM - Business Process Maintenance Alloc-Fixed 58,881 26,496 26,496 5,888
71 25011 Corrective Action/Preventive Action Alloc-Fixed 223,912 74,563 74,563 74,787
72 25008 QMS - Quality Management System Alloc-Fixed 42,296 14,085 14,085 14,127
73 25012 Business Process Improvement Alloc-Fixed 130,524 43,465 43,465 43,595
74 25013 Tariff & Governance Documents Compliance Program Alloc-Fixed 7,139 1,785 1,785 3,570
75 25014 EtQ Tools Dev & Support Total Dir Labor 155,507 33,509 80,476 41,522
76 Total 1,767,083 497,661 750,317 519,105
Activity Code Self-Funding Tariff
TOTAL COST ALLOCATIONS TO SCHEDULES BY COST CATEGORY
TEST YEAR 2014
(2) Provided by ISO-NE.
Exhibit 3 (RCL-3)
Schedule 3.0
Page 2 of 7
Line Allocation
(a) (b) (c) (d) (e) (f) (g)
TEST YEAR 2014
1 301 Human Resources
2 12661 Employee Affairs (Recreation Committee) Total Dir Labor 11,841 2,552 6,128 3,162
3 12701 Recruiting/Interviewing Total Dir Labor 519,475 111,937 268,834 138,704
4 12801 Employee Relations Total Dir Labor 14,376 3,098 7,440 3,839
5 12901 Benefit Administration Total Dir Labor 1,164,349 250,894 602,563 310,891
6 12951 Compensation Total Dir Labor 299,765 64,593 155,132 80,040
7 12961 HR - General Total Dir Labor 1,064,981 229,482 551,139 284,359
8 12962 HR - Training Total Dir Labor 1,558,853 335,902 806,724 416,227
9 Total 4,633,640 998,458 2,397,960 1,237,223
10
11 306 Legal Department
12 8301 GC - Federal Regulatory Total Dir Labor 76,344 16,451 39,509 20,384
13 12423 GC - Financial Assurance Policy (FAP) Total Dir Labor 167,488 36,090 86,677 44,721
14 12425 GC - Price Response Demand Total Dir Labor 60,009 12,931 31,055 16,023
15 12502 Board of Directors Total Dir Labor 177,733 38,298 91,979 47,456
16 12504 ISO Tariff Litigation Total Dir Labor 111,885 24,109 57,902 29,874
17 12505 Administration of OATT Alloc-Fixed 582,599 582,599 - -
18 12508 Energy Markets/Compliants/Rule Changes Alloc-Fixed 47,771 - 47,771 -
19 12509 Market Monitoring and Sanctions Alloc-Fixed 68,244 - 34,122 34,122
20 12512 GC - BSIA - General Corporate Total Dir Labor 119,994 25,856 62,098 32,039
21 12513 Miscellaneous Labor Matters Total Dir Labor 155,989 33,613 80,726 41,651
22 12514 NEPOOL Participants Committee Total Dir Labor 95,844 20,652 49,600 25,591
23 12517 Administrative and Clerical Support Total Dir Labor 481,455 103,744 249,158 128,553
24 12520 Market Monitoring Rules/Regulations Alloc-Fixed 341,218 - 136,487 204,731
25 12521 Billing Disputes Total Dir Labor 42,820 9,227 22,160 11,433
26 12523 NEPOOL Information Policy Total Dir Labor 54,595 11,764 28,253 14,577
27 12542 Transmission Upgrades CT Alloc-Fixed 62,400 - 43,680 18,720
28 12543 Independent Market Advisor Alloc-Fixed 865,000 - 605,500 259,500
29 12544 FERC Proceedings Total Dir Labor 219,731 47,348 113,713 58,670
30 12547 GC - Creation of New England RTO Total Dir Labor 35,996 7,756 18,628 9,611
31 12552 GC - S&G - General Corporate Total Dir Labor 278,961 60,110 144,365 74,485
32 12555 GC - Transmission Upgrades - VT Total Dir Labor 6,589 1,420 3,410 1,759
33 12556 GC - Patents Total Dir Labor 6,589 1,420 3,410 1,759
34 12559 General Corporate Total Dir Labor 820,510 176,804 424,623 219,083
35 12562 Transmission Upgrades VT Alloc-Fixed 13,202 - 9,242 3,961
36 12563 Regulatory Matters Total Dir Labor 123,605 26,634 63,967 33,004
37 12565 GC - Conn Regulatory Matters - WBAM Total Dir Labor 13,202 2,845 6,832 3,525
38 12569 NOPR / Rulemaking Comments Total Dir Labor 12,006 2,587 6,213 3,206
39 12570 GC - BSAI - Operations Total Dir Labor 31,189 6,721 16,140 8,328
40 12571 ISO Reporting Total Dir Labor 12,006 2,587 6,213 3,206
41 12572 GC - BSAI - 205 General Proceedings Total Dir Labor 12,006 2,587 6,213 3,206
42 12573 206 General Proceedings Total Dir Labor 32,994 7,110 17,075 8,810
43 12574 Market Rule 1 Proceedings Total Dir Labor 96,004 20,687 49,683 25,634
44 12575 Transmission Cost Allocation Alloc-Fixed 105,056 - 73,539 31,517
45 12587 Capacity Market Development Alloc-Fixed 519,701 - - 519,701
46 12588 Web Content Management Total Dir Labor 631,513 136,079 326,815 168,620
47 12592 GC - State Proceedings Alloc-Fixed 12,006 - 6,003 6,003
48 12594 Maine Transmission Siting Alloc-Fixed 31,189 - 21,832 9,357
49 12595 NEEWS Transmission Siting Alloc-Fixed 40,946 - 28,662 12,284
50 12598 GC - ERO Alloc-Fixed 35,996 14,398 14,398 7,199
51 12663 Public Information Total Dir Labor 1,247,867 268,891 645,785 333,192
52 12669 Government Affairs Total Dir Labor 1,654,060 356,417 855,994 441,649
53 Total 9,504,313 2,057,735 4,529,436 2,917,143
54
55 305 Internal Audit
56 15001 Audit - Indirect Mgmnt Duties Total Dir Labor 402,990 86,836 208,552 107,602
57 15002 Audit- Personnel Management Total Dir Labor 30,172 6,501 15,614 8,056
58 15003 Audit- Budget & Forecasting Total Dir Labor 7,543 1,625 3,904 2,014
59 15004 Audit- Audit Follow-up Activities Total Dir Labor 15,086 3,251 7,807 4,028
60 15005 Audit - Audit & Finance Committee Total Dir Labor 22,629 4,876 11,711 6,042
61 15006 Audit- Internal Audit Business Process Update Total Dir Labor 7,543 1,625 3,904 2,014
62 15007 Audit- Annual Audit Work Plan Total Dir Labor 22,629 4,876 11,711 6,042
63 15008 Audit-Training Total Dir Labor 69,448 14,965 35,940 18,543
64 15020 Internal Audit - Finance Total Dir Labor 64,623 13,925 33,443 17,255
65 15021 Audit- Perfomance Measurements Total Dir Labor 15,086 3,251 7,807 4,028
66 15022 Audit- Vendor Contracts Total Dir Labor 15,086 3,251 7,807 4,028
67 15023 Audit- Wire Transfers Total Dir Labor 7,543 1,625 3,904 2,014
68 15031 Audit - Employee Expense Reporting Total Dir Labor 7,543 1,625 3,904 2,014
69 15040 Audit-Operations Total Dir Labor 200,396 43,181 103,707 53,508
70 15066 Audit- Day Ahead Markets/Settlements Total Dir Labor 22,629 4,876 11,711 6,042
71 15085 Audit - Information Technology Total Dir Labor 90,516 19,504 46,843 24,168
72 15110 External Audit - Operations Total Dir Labor 75,430 16,254 39,036 20,140
73 15133 Audit- Satellite Reviews Total Dir Labor 8,593 1,852 4,447 2,294
74 15161 External Audit- Pension Audit Total Dir Labor 57,682 12,429 29,851 15,402
75 15162 Ext Audit- Financial Audit Total Dir Labor 127,120 27,392 65,786 33,942
76 15166 Ext Audit -Pricing Module Certification Alloc-Fixed 29,510 - 29,510 -
77 15170 External Audit - Settlements Total Dir Labor 2,270 489 1,175 606
78 15175 Ext Audit - Info Technology Total Dir Labor 15,890 3,424 8,223 4,243
79 15186 Ext Audit - SSAE 16 Direct Support Total Dir Labor 22,629 4,876 11,711 6,042
80 15192 IA Special Projects - Data Mining - Audit Command Language ImplTotal Dir Labor 24,035 5,179 12,438 6,418
81 25702 External Audit - SSAE 16 Alloc-Fixed 393,622 - 393,622 -
82 28304 Stimulus Fund Project Compliance, Rpting & Auditing Req Pre-ImpTotal Dir Labor 14,756 3,180 7,636 3,940
83 Total 1,772,997 290,869 1,121,702 360,426
Exhibit 3 (RCL-3)
Schedule 3.0
Page 3 of 7
Line Allocation
(a) (b) (c) (d) (e) (f) (g)
TEST YEAR 2014
1 701 COO-Adm
2 19001 COO - NEPOOL Committee Support Total OPS Labor 34,564 9,264 16,575 8,726
3 19002 COO - Regional Committee Support Total OPS Labor 27,485 7,366 13,180 6,939
4 19003 COO - National Committee Support Total OPS Labor 76,685 20,553 36,773 19,359
5 19005 COO - Indirect Supervision/Clerical Support Total OPS Labor 1,392,812 373,295 667,902 351,616
6 19009 COO - Renewable Resource Integration Alloc-Fixed 108,235 - - 108,235
7 19012 Changes to the Forward Capacity Market Alloc-Fixed 792,795 - - 792,795
8 19013 Changes Relevant to Fuel Security Alloc-Fixed 632,433 - 505,947 126,487
9 Total 3,065,009 410,477 1,240,376 1,414,156
10
11
12 105 System Operations - Administration
13 14404 System Ops Mgt & Adm - NEPOOL Committee Support SOA Labor 16,118 5,567 7,482 3,069
14 14405 System Ops Mgt & Adm - Indirect Supervision/Clerical Support SOA Labor 383,293 132,389 177,925 72,979
15 14407 System Ops Mgt & Adm - Regional Committee Support SOA Labor 10,745 3,711 4,988 2,046
16 Total 410,156 141,668 190,394 78,094
17
18 101 Operations
19 14001 Ops - Generation Dispatch Alloc-Fixed 2,563,285 - 2,153,159 410,126
20 14002 Ops - Transmission Operations Alloc-Fixed 1,787,971 1,430,377 89,399 268,196
21 14304 Ops - Advanced Scheduling and Forecasting Alloc-Fixed 1,673,261 83,663 1,321,876 267,722
22 14402 Ops - Operations Training Alloc-Fixed 1,783,991 713,596 713,596 356,798
23 14413 Ops - Operations Support Training & Development Alloc-Fixed 521,137 208,455 208,455 104,227
24 14561 Ops - NEPOOL Committee Support OPS Labor 4,240 1,185 2,347 707
25 14562 Ops - Regional Committee Support OPS Labor 16,960 4,741 9,390 2,829
26 14563 Ops - National Committee Support OPS Labor 38,160 10,668 21,127 6,365
27 14564 Ops - Indirect Supervision/Clerical Support OPS Labor 1,421,243 397,332 786,853 237,059
28 14565 Ops - Employee Development OPS Labor 3,620 1,012 2,004 604
29 14570 Ops - Market Analysis Alloc-Fixed 8,480 - 8,480 -
30 14702 TPC - Procedure Documentation Alloc-Fixed 429,390 171,756 171,756 85,878
31 Total 10,251,738 3,022,786 5,488,442 1,740,510
32
33 702 Reliability and Operations Services
34 14703 TPC - NEPOOL Committee Support OS Labor 366,881 203,791 70,927 92,163
35 14706 TPC - Indirect Supervision/Clerical Support OS Labor 17,189 9,548 3,323 4,318
36 14711 ISO TMS Tariff-Section 2 - (OATT) and Agreements Support Alloc-Fixed 278,114 92,612 92,612 92,890
37 14715 EIPC - Non DOE Funded/Unallowable Alloc-Fixed 155,158 - - 155,158
38 Total 817,341 305,951 166,862 344,529
39
40 703 Reliability and Operations Compliance
41 14801 ROC - Compliance Monitoring Alloc-Fixed 803,383 321,353 321,353 160,677
42 14803 ROC - Regional Committee Support OS Labor 26,824 13,412 - 13,412
43 14804 ROC - National Committee Support OS Labor 229,182 114,591 - 114,591
44 14806 ROC - Employee Development Alloc-Fixed 18,549 10,303 3,586 4,660
45 14807 ROC - Compliance Audit OS Labor 18,549 9,274 - 9,274
46 14808 ROC - Change Management Alloc-Fixed 9,274 4,173 927 4,173
47 14809 ROC - Tariff Compliance Alloc-Fixed 102,017 30,605 61,210 10,202
48 14810 ROC - NERC Self Certifications Alloc-Fixed 46,371 39,416 - 6,956
49 Total 1,254,149 543,128 387,077 323,944
50
51 103 Operations Support Services
52 14451 TSO - NEPOOL Committee Support TSO Labor 17,823 5,770 8,521 3,532
53 14452 TSO - Regional Committee Support TSO Labor 6,400 2,072 3,060 1,268
54 14453 TSO - National Committee Support TSO Labor 10,870 3,519 5,197 2,154
55 14454 TSO - Indirect Supervision/Clerical Support TSO Labor 710,650 230,068 339,751 140,831
56 14455 TSO - Employee Development TSO Labor 497,133 160,943 237,672 98,518
57 14462 OSS - General Systems Operations Support TSO Labor 797,715 258,255 381,376 158,085
58 14469 OSS C10/C30 Audits Alloc-Fixed 122,683 - 98,146 24,537
59 14470 OSS Resource Performance Monitoring Alloc-Fixed 122,683 - 98,146 24,537
60 14471 OSS New Generation Coordination & Registration Alloc-Fixed 1,600 - 1,120 480
61 18361 OSS - Transmission Studies, Operations, OASIS Support Alloc-Fixed 2,065,211 1,652,169 103,261 309,782
62 18381 OSS - Transmission Outage Appl - Short Term Alloc-Fixed 982,016 785,613 49,101 147,302
63 18382 OSS - Trans Out Ap Lg Term Alloc-Fixed 743,642 - - 743,642
64 Total 6,078,427 3,098,409 1,325,351 1,654,667
65
66 System Operations Support
67 14750 SOS - NEPOOL Committee Support Alloc-Fixed 1,600 518 765 317
68 14752 SOS - National Committee Support Alloc-Fixed 6,400 2,072 3,060 1,268
69 14753 SOS - Indirect Supervision/Clerical Support Alloc-Fixed - - - -
70 14755 Winter 2013/14 Reliability Project Alloc-Fixed 1,326,221 - 265,244 1,060,977
71 1,334,221 2,590 269,069 1,062,562
72
73 415 Market Operations - Adm
74 19101 MO - NEPOOL Committee Support MOA Labor 23,942 - 16,759 7,183
75 19103 MO - National Committee Support MOA Labor 17,352 - 12,146 5,206
76 19104 MO - Indirect Supervision/Clerical Support MOA Labor 751,474 - 526,032 225,442
77 19105 Employee Development MOA Labor 20,022 - 14,015 6,007
78 19112 Settlements - Customer Service MOA Labor 11,767 - 8,237 3,530
79 19120 CEII Requests Total Dir Labor 24,843 5,354 12,856 6,633
80 19121 Membership/Participant Support Alloc-Fixed 8,281 - 4,141 4,141
81 19122 DR/BLTS Issues Management Total Dir Labor 35,420 7,633 18,330 9,457
82 Total 893,101 12,987 612,517 267,598
Exhibit 3 (RCL-3)
Schedule 3.0
Page 4 of 7
Line Allocation
(a) (b) (c) (d) (e) (f) (g)
TEST YEAR 2014
1 404 Market Monitoring
2 16101 Market Power Monitoring and Mitigation Alloc-Fixed 1,803,808 - 1,262,666 541,142
3 16102 Regulatory Activities Alloc-Fixed 292,066 - 204,446 87,620
4 16103 Administration Supervision and Clerical Support Alloc-Fixed 257,478 - 180,234 77,243
5 16111 Employee Development MMM Labor 221,326 - 154,928 66,398
6 16115 Analysis & Internal Reports MMM Labor 353,433 - 247,403 106,030
7 16121 FCM Market Monitoring Alloc-Fixed 145,311 - - 145,311
8 Total 3,073,422 - 2,049,678 1,023,744
9
10 416 Market Operations
11 21901 Day Ahead Market Administration Alloc-Fixed 299,931 - 299,931 -
12 21902 Real Time Price Verification Alloc-Fixed 299,931 - 299,931 -
13 21903 FTR/ARR Administration Alloc-Fixed 35,420 17,710 17,710 -
14 21904 MA - NEPOOL Committee Support MA Labor 74,052 - 71,713 2,338
15 21906 MA - National Committee Support MA Labor 8,855 - 8,575 280
16 21907 MA - Indirect Supervision/Clerical Support MA Labor 382,488 - 370,410 12,079
17 21908 Employee Development MA Labor 115,670 - 112,017 3,653
18 21909 Customer Support MA Labor 70,841 - 68,604 2,237
19 21913 MA-Data Collection/Report Writing Alloc-Fixed 177,102 - 177,102 -
20 21915 FTR/Auction Administration Alloc-Fixed 265,650 - 265,650 -
21 21916 Forward Reserve Market - Administration Alloc-Fixed 17,710 - - 17,710
22 21917 Real Time Price Finalization Alloc-Fixed 106,261 - 106,261 -
23 21951 FCM Annual Reconfiguration Auction Administration Alloc-Fixed 35,420 - - 35,420
24 21953 FCM Monthly Administration Alloc-Fixed 177,102 - - 177,102
25 21956 Changes in Supply Offers (Hourly Reoffers) Alloc-Fixed 756,377 - 756,377 -
26 Total 2,822,812 17,710 2,554,282 250,820
27
28 401 Market Anaylsis & Settlements
29 1701 Billing Statements - Energy Alloc-Fixed 57,114 - 57,114 -
30 1702 Billing Statements - Transmission Alloc-Fixed 42,836 42,836 - -
31 1713 Billing Statements - ISO Tariff Total Dir Labor 49,975 10,769 25,863 13,344
32 1714 MAS - Billable Tariff Re-billings Alloc-Fixed 1,428 1,428 - -
33 2036 MAS - Market Analysis - Projects Alloc-Fixed 7,139 - 7,139 -
34 2037 MAS - Bill Job Aid Alloc-Fixed 2,856 428 1,713 714
35 2039 MAS - BITT and Business Tools Alloc-Fixed 7,139 1,071 4,284 1,785
36 2043 MAS - Release Checkout and Support Alloc-Fixed 14,279 2,142 8,567 3,570
37 2044 MAS - EQR Reporting Alloc-Fixed 2,856 428 1,713 714
38 2048 MAS - FCM Alloc-Fixed 214,178 - - 214,178
39 2049 MAS - Product Testing Alloc-Fixed 42,836 - 34,269 8,567
40 2051 MAS - Legal Support Alloc-Fixed 1,428 - 714 714
41 2052 MAS - FERC Data Request Alloc-Fixed 49,975 - 24,987 24,987
42 2053 MAS - Tariff Change Coordination (TCC) Total Dir Labor 129,935 28,001 67,241 34,693
43 2054 MAS - Markets Development Support Alloc-Fixed 7,139 - 3,570 3,570
44 2005 Settlements - Customer Service STLM Labor 54,643 8,081 26,619 19,944
45 2007 Settlements - Admin support - NEPOOL Committees STLM Labor 28,615 4,232 13,940 10,444
46 2008 Settlements - Admin support (ISO) STLM Labor 128,507 19,004 62,600 46,903
47 2009 Settlements - Indirect Supervision/Clerical Support STLM Labor 514,699 76,114 250,729 187,856
48 2010 Settlements - Employee Development STLM Labor 223,675 33,077 108,960 81,637
49 2013 Settlements - FTR Administration Alloc-Fixed 28,557 - 28,557 -
50 2014 Billing Statements - NCPC Alloc-Fixed 171,343 - 85,671 85,671
51 2020 Settlements-Billing Disputes Total Dir Labor 21,418 4,615 11,084 5,719
52 2021 Settlements-Analysis & Reporting Total Dir Labor 199,900 43,074 103,450 53,375
53 2022 Settlements-Demand Response Alloc-Fixed 35,696 - - 35,696
54 2024 Settlements - ASM Regulation Alloc-Fixed 14,279 - - 14,279
55 2025 Settlements - ASM Locational Forward Reserve Alloc-Fixed 99,950 - - 99,950
56 2026 Settlements-Batch Processing Total Dir Labor 35,696 7,692 18,473 9,531
57 2032 Settlements - Billing STLM Labor 42,836 6,335 20,867 15,634
58 2033 Settlements - Market Analysis Alloc-Fixed 171,343 - 171,343 -
59 2034 Settlements - COPQ Alloc-Fixed 99,950 14,992 39,980 44,977
60 Total 2,502,217 304,318 1,179,447 1,018,452
61
62 Market Operations Support Services
63 3000 MOSS - Hourly Settlements Support Alloc-Fixed 200,792 - 100,396 100,396
64 3002 MOSS - Monthly Settlements Support Alloc-Fixed 200,792 100,396 - 100,396
65 3003 MOSS - Market Analysis Support Alloc-Fixed 109,523 - 109,523 -
66 3004 MOSS - Generation & Load Admin Support Alloc-Fixed 200,792 - 200,792 -
67 3005 MOSS - Demand Resource Admin Support Alloc-Fixed 292,061 - 292,061 -
68 3006 MOSS - Customer Service Alloc-Fixed 41,071 - 41,071 -
69 3007 MOSS - NEPOOL Committees Support Alloc-Fixed 4,597 - 2,299 2,299
70 3008 MOSS - Admin Support Alloc-Fixed 9,127 - 9,127 -
71 3009 MOSS - Indirect Supervision (Principal Analysts only) Alloc-Fixed 4,563 - 4,563 -
72 3010 MOSS - Employee Development Alloc-Fixed 34,028 - 34,028 -
73 3011 MOSS - Release Checkout and Support Alloc-Fixed 36,508 - 36,508 -
74 3012 MOSS - FERC Data Request Alloc-Fixed 63,888 - 63,888 -
75 3013 MOSS - Tariff Change Coordination (TCC) Total Dir Labor 4,563 983 2,362 1,218
76 3014 MOSS - Markets Development Support Alloc-Fixed 9,127 - 4,563 4,563
77 Total 1,211,434 101,379 901,182 208,873
Exhibit 3 (RCL-3)
Schedule 3.0
Page 5 of 7
Line Allocation
(a) (b) (c) (d) (e) (f) (g)
TEST YEAR 2014
1 406 Market Services
2 16001 Participant/membership support Alloc-Fixed 106,754 - 53,377 53,377
3 16006 Call Support (HEAT) Alloc-Fixed 916,319 238,243 604,770 73,305
4 16401 MSS NEPOOL Reliability Committee MS Labor 18,236 - 16,413 1,824
5 16407 MSS Employee Development MS Labor 20,351 - 18,316 2,035
6 16408 Miscellaneous and Administrative Activities MS Labor 54,298 - 48,869 5,430
7 16414 MSS Direct Customer Contact MS Labor 97,536 - 87,782 9,754
8 16419 Asset Registration Implemented Alloc-Fixed 141,682 - 141,682 -
9 16420 Asset Registration Reivew Alloc-Fixed 141,682 - 141,682 -
10 16421 C10/C30 Audits Alloc-Fixed 184,024 - 154,580 29,444
11 16422 Claimed Capability Audits Alloc-Fixed 70,841 - 70,841 -
12 16424 Demand Resource Audits Alloc-Fixed 212,523 - 212,523 -
13 16425 DR Registration Implemented Alloc-Fixed 70,841 - 70,841 -
14 16426 DR Registration Review Alloc-Fixed 17,710 - 17,710 -
15 16429 MSS Business Analysis - Process Improvement Alloc-Fixed 471,432 - 424,289 47,143
16 16431 Network Model Releases and PNODE Activation/Deactivation Alloc-Fixed 17,710 12,397 5,313 -
17 16432 New Generation Coordination and Registration Alloc-Fixed 35,420 - 35,420 -
18 16433 Passive Resource Performance and M&V Review Alloc-Fixed 35,420 - 35,420 -
19 16434 QMS/CAPA Process and Procedure Updates Total Dir Labor 283,364 61,065 146,641 75,658
20 16435 Resource Performance Monitoring Alloc-Fixed 79,696 - 79,696 -
21 Total 2,975,840 311,705 2,366,165 297,970
22
23 410 Market Training and Reliability Contracts
24 16021 Training Development Alloc-Fixed 622,836 - 311,418 311,418
25 Total 622,836 - 311,418 311,418
26
27 203 Resource Adequacy
28 14315 PSR - Employee Development PSR Labor 100,760 10,949 5,085 84,726
29 17101 PSR Analysis Alloc-Fixed 1,014,493 - 710,145 304,348
30 17131 PSR - Calculate Objective Capability Alloc-Fixed 149,852 - - 149,852
31 17241 PSR-Transmission Plan Admin Support Alloc-Fixed 617 308 308 -
32 17251 PSR-Regional Bulk Power System Assessment Alloc-Fixed 302,170 151,085 151,085 -
33 17331 PSR NEPOOL Committee Support PSR Labor 56,503 6,140 2,851 47,512
34 17361 PSR Regional Committee Support PSR Labor 43,320 4,707 2,186 36,427
35 17401 PSR Indirect Supervisory Activities PSR Labor 150,033 16,303 7,571 126,159
36 17403 TCA Application Review Alloc-Fixed 69,680 - - 69,680
37 17405 Energy Efficiency Forecast Alloc-Fixed 39,004 - - 39,004
38 17406 SP - North American Energy Standards Board (NAESB) Alloc-Fixed 28,405 - 14,203 14,203
39 17407 SP - National Standards Work Alloc-Fixed 30,563 - 15,282 15,282
40 17408 MA-EEAC Total Dir Labor 19,965 4,302 10,332 5,331
41 17501 FCA - Evaluate Existing Resource De-list Bids Alloc-Fixed 175,391 - - 175,391
42 17502 FCA - Preliminary Review of Show of Interest Applications Alloc-Fixed 37,463 - - 37,463
43 17503 FCA - New Resource Qualification Support Alloc-Fixed 402,042 - - 402,042
44 17504 FCA - Perform Transmission / Topology Assessments Alloc-Fixed 74,926 - - 74,926
45 17505 FCA - Perform Existing Resource Qualification Alloc-Fixed 74,926 - - 74,926
46 17507 FCA - Auctions & Filings Alloc-Fixed 933,895 - - 933,895
47 17508 FCA - Annual Reconfiguration Auction Support/Reliability ReviewsAlloc-Fixed 37,463 - - 37,463
48 18101 LF - Develop Load Forecast Alloc-Fixed 202,132 40,426 40,426 121,279
49 18121 SP - Operations Forecast Support Alloc-Fixed 74,926 14,985 14,985 44,956
50 18131 LF - Other Load Forecasting Activities Alloc-Fixed 37,463 7,493 7,493 22,478
51 Total 4,055,989 256,698 981,952 2,817,340
52
53 204 System Planning
54 18148 SP - NEPOOL Committee Support Alloc-Fixed 38,895 - 38,895 -
55 18150 SP - Regional Transmission Expansion Plan Alloc-Fixed 470,876 353,157 117,719 -
56 18152 States Requests Alloc-Fixed 306,816 153,408 76,704 76,704
57 18401 SP - Regional Activities Alloc-Fixed 258,964 258,964 - -
58 18521 SP - Employee Development SP Labor 22,283 5,532 3,950 12,800
59 18531 SP - Indirect Supervision/Clerical Support SP Labor 172,784 42,896 30,632 99,256
60 Total 1,270,617 813,957 267,901 188,760
61
62 205 Transmission Planning
63 11201 System Design Task Force Alloc-Fixed 18,905 18,905 - -
64 18201 TR - Transmission System Assessment Alloc-Fixed 3,559,626 3,559,626 - -
65 18261 TR - Transmission Tariff Information Requirements Alloc-Fixed 6,302 6,302 - -
66 18301 TR - NEPOOL Administrative Support - Schedule 1 Tariff Alloc-Fixed 49,665 49,665 - -
67 18333 TR - General SIS/FS Alloc-Fixed 783,194 783,194 - -
68 18334 TR - Indirect Supervision/Clerical Support TP Labor 603,030 603,030 - -
69 18335 TR - Regulatory Activities - NPCC TP Labor 57,897 57,897 - -
70 18336 TR - National Activities TP Labor 5,818 5,818 - -
71 18337 TR - Regulatory Activities TP Labor 82,247 82,247 - -
72 18338 TR - Employee Development TP Labor 114,822 114,822 - -
73 18343 FERC Order 1000 Alloc-Fixed 1,304,576 - - 1,304,576
73 Total 6,586,082 5,281,505 - 1,304,576
Exhibit 3 (RCL-3)
Schedule 3.0
Page 6 of 7
Line Allocation
(a) (b) (c) (d) (e) (f) (g)
TEST YEAR 2014
1 304 Program Management
2 801 Program Management - Administration Total Dir Labor 598,934 129,058 309,955 159,921
3 1661 ISO Program Management Alloc-Fixed 302,335 - 211,635 90,701
4 25002 PMO Support Alloc-Fixed 317,454 95,236 111,109 111,109
5 25739 IT BCC Support Alloc-Fixed - - - -
6 25822 System Restoration and Blackstart Resource Resource Mgmnt Alloc-Fixed 168,490 168,490 - -
7 25849 Allowable Smart Grid SIDU Alloc-Fixed 8,118 1,218 1,218 5,683
8 25850 Unallowable Smart Grid SIDU Alloc-Fixed 12,006 1,801 1,801 8,404
9 25891 Wind Integration Project - O&M Alloc-Fixed 127,560 - 63,780 63,780
10 25910 Generation Control Applications (GCA) Phase II Alloc-Fixed 36,508 18,254 18,254 -
11 25911 Strategic Planning Initiatives Alloc-Fixed 37,463 - - 37,463
12 25912 Generation Auditing - Claim 10/30 Alloc-Fixed 73,015 - - 73,015
13 25914 Divisional Accounting (for Market Participants) Total Dir Labor 109,523 23,600 56,679 29,244
14 25926 Hourly Market Alloc-Fixed 177,102 70,841 53,131 53,131
15 25935 Control Room Visualization Alloc-Fixed - - - -
16 Total 1,968,508 508,498 827,561 632,450
17
18 315 Business Architecture and Technology
19 21201 Business Architecture and Technology Total Dir Labor 2,140,368 461,207 1,107,664 571,497
20 21203 BAT - Employee Development Total Dir Labor 29,445 6,345 15,238 7,862
21 Total 2,169,813 467,552 1,122,902 579,359
22
23 408 Market Development Administration
24 21001 Markets Development Total Dir Labor 2,057,320 443,312 1,064,686 549,322
25 21002 MD - Indirect Supervision/Clerical Support Total Dir Labor 56,085 12,085 29,024 14,975
26 21003 MD - Employee Development Total Dir Labor 124,819 26,896 64,595 33,328
27 21007 MD - Budget/Forecast Support Total Dir Labor 22,434 4,834 11,610 5,990
28 21009 Increased Scope of Impact Analysis Alloc-Fixed 400,000 104,000 264,000 32,000
29 21102 ME - Indirect Supervision/Clerical Support Total Dir Labor - - - -
30 16607 National Committee Support MD Labor 997,144 5,975 531,973 459,196
31 Total 3,657,801 597,102 1,965,888 1,094,811
32
33 407 Market Design
34 22601 MDes-Direct Supervision&Clerical Total Dir Labor 112,169 24,170 58,049 29,950
35 22602 MDes-Committee Meetings Total Dir Labor 70,160 15,118 36,309 18,733
36 22606 MDes-Market Analysis/Governing Documents Total Dir Labor 280,380 60,416 145,100 74,864
37 22607 MDes - NEPOOL Markets Committee Administration Alloc-Fixed 4,081 408 1,836 1,836
38 Total 466,791 100,113 241,294 125,384
39
40 409 Demand Resource Strategy
41 22401 Demand Response Total Dir Labor 160,161 34,511 82,885 42,764
42 22402 DR-Regulatory Ccmmittees and Working Groups Total Dir Labor 37,148 8,005 19,224 9,919
43 22404 RFP Linkages Total Dir Labor 311,022 67,019 160,957 83,046
44 Total 508,330 109,535 263,067 135,729
45
46 210 IT Management
47 6517 Employee Development - Hardware/Software Total Dir Labor 742,126 159,914 384,059 198,154
48 6519 Indirect Supervision and Clerical Support Total Dir Labor 2,409,957 519,298 1,247,179 643,480
49 6552 IT - Security Total Dir Labor 595,388 128,294 308,120 158,974
50 6554 IT - NESEC Project Total Dir Labor - - - -
51 6556 IT - Budget Preparation, Tracking & Forecast Total Dir Labor 170,125 36,659 88,042 45,425
52 6557 IT - Information Technology Committee Total Dir Labor 49,055 10,570 25,386 13,098
53 6559 IT - Server Consolidation Project Total Dir Labor 5,040 1,086 2,608 1,346
54 22501 IT CM/QA - Change Management Support Alloc-Fixed 146,779 66,051 66,051 14,678
55 22502 IT CM/QA - QA Support Alloc-Fixed 10,379 3,529 3,425 3,425
56 22505 IT CM/QA - Administrative Alloc-Fixed 316,219 107,514 104,352 104,352
57 Total 4,445,068 1,032,915 2,229,222 1,182,932
58
59 201 IT System/Network & Desktop
60 6510 Desktop Support - Hardware Total Dir Labor 212,085 45,700 109,756 56,629
61 6511 Desktop Support - Software Total Dir Labor 305,083 65,739 157,884 81,460
62 6512 Host Computer - Hardware Alloc-Fixed 388,745 - 291,559 97,186
63 6513 Host Computer - Software Alloc-Fixed 534,621 - 400,966 133,655
64 6514 Networking - Hardware Total Dir Labor 383,644 82,668 198,540 102,436
65 6516 Communications Total Dir Labor 1,560,408 336,237 807,528 416,643
66 6550 IT - Data Communications Support Total Dir Labor 351,477 75,736 181,893 93,847
67 6602 Help Desk Support Total Dir Labor 201,355 43,388 104,203 53,764
68 6615 IT - Host Computer Monitoring Alloc-Fixed 1,059,655 - 529,828 529,828
69 6616 IT - Desktop Support Total Dir Labor 1,603,515 345,526 829,836 428,152
70 6617 IT - System Administration - Unix Total Dir Labor 574,243 123,738 297,177 153,328
71 6618 IT - System Administration - Windows Total Dir Labor 948,133 204,304 490,669 253,160
72 6619 IT - Systems Support Misc Total Dir Labor 218,993 47,189 113,331 58,473
73 6620 IT - Systems Support - Security Total Dir Labor 83,049 17,895 42,979 22,175
74 6621 IT - Network Support Total Dir Labor 445,516 96,000 230,559 118,957
75 6622 IT - Network/Systems Compliance 2009 Initiative Total Dir Labor 48,445 10,439 25,071 12,935
76 6623 IT - Asset Management Total Dir Labor 399,966 86,185 206,987 106,794
77 Total 9,318,934 1,580,744 5,018,768 2,719,422
Exhibit 3 (RCL-3)
Schedule 3.0
Page 7 of 7
Line Allocation
(a) (b) (c) (d) (e) (f) (g)
TEST YEAR 2014
1 212 IT Cyber Security
2 6539 IT Policy/Procedures Program Total Dir Labor 34,024 7,331 17,608 9,085
3 6540 IT Security Compliance and Reporting Total Dir Labor 930,144 200,428 481,360 248,357
4 6540A IT Controls Assessment Total Dir Labor 31,136 6,709 16,113 8,314
5 6540D IT Intrusion Monitoring and Response Total Dir Labor 103,788 22,364 53,712 27,712
6 6540E IT System Compliance Enhancement Total Dir Labor 114,167 24,601 59,083 30,484
7 6541 IT Security SW Tools Program Total Dir Labor 51,894 11,182 26,856 13,856
8 6543 Critical Infrastructure Protection WG (NERC) Total Dir Labor 54,781 11,804 28,350 14,627
9 6544 Infragrad (FBI) Total Dir Labor 527,128 113,586 272,794 140,748
10 6546 IT Internal Audit Support Total Dir Labor 23,645 5,095 12,237 6,313
11 6548 CIP Compliance & Monitoring Total Dir Labor 175,303 37,774 90,721 46,807
12 Total 2,046,011 440,875 1,058,833 546,303
13
14 211 IT Enterprise Applications Support
15 6571 DBA Support - MOPS Total Dir Labor 1,320,912 284,630 683,587 352,695
16 6591 Data Architect - MOPS Total Dir Labor 132,591 28,571 68,617 35,403
17 6594 IT Data Analyst Total Dir Labor 117,831 25,390 60,979 31,462
18 6595 IT WEB Application Support Total Dir Labor 428,123 92,252 221,558 114,312
19 21706 IT Markets Software Development - Enterprise Total Dir Labor 565,591 121,874 292,699 151,018
20 21801 IT Markets Software Support - Settlements Alloc-Fixed 507,782 - 406,225 101,556
21 21802 IT Markets Software Support - Publishing Alloc-Fixed 371,928 - 297,543 74,386
22 21803 IT Markets Software Support - Finance Alloc-Fixed 398,170 - 318,536 79,634
23 21804 IT Markets Software Support - Mitigation Alloc-Fixed 356,458 - 285,167 71,292
24 21805 IT Markets Software Support - TSO Total Dir Labor 327,935 70,663 169,710 87,561
25 21806 IT Markets Software Support - Enterprise Total Dir Labor 1,302,068 280,570 673,834 347,664
26 21807 IT Markets Software Support - Planning Alloc-Fixed 1,567,128 - 1,253,702 313,426
27 21808 IT CM/QA - Training Delivery to NON-IT Alloc-Fixed 87,755 - 70,204 17,551
28 21809 IT CM/QA - Tools Alloc-Fixed 44,461 - 35,568 8,892
29 21811 FSIT - Single Sign On Support Alloc-Fixed 219,628 - 175,702 43,926
30 21819 Ceridian Support Total Dir Labor 47,569 10,250 24,618 12,701
31 21821 Compliance Management Total Dir Labor 68,245 14,705 35,318 18,222
32 Total 7,864,174 928,906 5,073,568 1,861,701
33
34 102 IT Energy Management Systems
35 21600 EMS - Indirect Supervision and Administration Total Dir Labor 260,238 56,076 134,676 69,486
36 21601 EMS - Power System Modeling Total Dir Labor 135,099 29,111 69,915 36,073
37 21602 EMS - Applications Development Total Dir Labor - - - -
38 21603 EMS - Applications Support Total Dir Labor 743,915 160,299 384,984 198,632
39 21604 EMS/DTS Support Alloc-Fixed 1,225,641 980,512 245,128 -
40 21605 EMS - DAM Support Alloc-Fixed 929,400 185,880 557,640 185,880
41 21606 EMS - Real-time Market Support Alloc-Fixed 1,424,248 284,850 854,549 284,850
42 21607 EMS - Forecast Support Alloc-Fixed 89,561 17,912 53,737 17,912
43 Total 4,808,101 1,714,640 2,300,629 792,832
44
45 213 IT Enterprise Applications Development
46 21703 IT WEB & TSO Application Support Alloc-Fixed 260 - 52 208
47 21707 Application Analysis and Conceptual Design Alloc-Fixed 797,703 - 638,162 159,541
48 21710 ESD - Indirect Supervision and Administration Alloc-Fixed 463,525 - 370,820 92,705
49 21711 EWR and CAPA Analysis Alloc-Fixed 178,795 - 143,036 35,759
50 6518 Employee Development - Software Total Dir Labor 1,911 412 989 510
51 Total 1,442,194 412 1,153,060 288,723
52
53 216 IT Power System Modeling Management
54 21650 PSMM- Indirect Supervision and Administration Total Dir Labor 106,672 22,988 55,203 28,481
55 21651 PSMM- Power System Modeling Alloc-Fixed 572,051 228,820 228,820 114,410
56 21652 PSMM- System Application Support Alloc-Fixed 156,198 62,479 62,479 31,240
57 21654 PSMM- NX9 Administration Alloc-Fixed 179,760 71,904 71,904 35,952
58 21655 PSMM- ICCP Support Alloc-Fixed 776,420 310,568 310,568 155,284
59 21656 PSMM- Transmission Project Management Alloc-Fixed 22,055 17,644 4,411 -
60 21657 PSMM- Model On Demand Admin Alloc-Fixed 305,365 - - 305,365
61 21658 PSMM- Model on Demand Case Requests Alloc-Fixed 46,859 - - 46,859
62 Total 2,165,379 714,403 733,385 717,591
63
64
65 Total ISO 169,324,196 $ 38,455,349 $ 78,752,397 $ 52,116,450 $
Exhibit 3 (RCL-3)
Schedule 4.0
Page 1 of 9
Line Allocation
(a) (b) (c) (d) (e) (f) (g)
2 12651 Adm/Finance/HR - Indirect Administrative Support Total Dir Labor 2,976,197 $ 641,312 $ 1,540,215 $ 794,671 $
3 Total 2,976,197 641,312 1,540,215 794,671
4
5 302 Finance
6 11601 Payroll Administration Total Dir Labor 162,134 34,937 83,906 43,291
7 11701 Accounts Payable Total Dir Labor 148,035 31,899 76,610 39,527
8 11702 Procurement Total Dir Labor 380,662 82,025 196,997 101,640
9 11901 Billing for Transmission and Energy Settlements Total Dir Labor 56,394 12,152 29,185 15,058
10 12001 Planning/Budgeting/Forecasting Total Dir Labor 381,467 82,199 197,413 101,855
11 12005 Credit Admininstration Total Dir Labor 234,422 50,513 121,316 62,593
12 12012 Forward Capacity Market Production Alloc-Fixed - - - -
13 12101 Ledger Closing, Financial Statements and Tax Reporting Total Dir Labor 458,205 98,734 237,126 122,345
14 12201 Treasury and Cash Management Total Dir Labor 91,641 19,747 47,425 24,469
15 25554 Generation Information System Alloc-Fixed 17,665 7,949 7,949 1,767
16 99998 Payroll & Other Accruals Total Dir Labor 8,630,548 1,859,712 4,466,403 2,304,432
17 Total 10,561,175 2,279,867 5,464,331 2,816,976
18
20 12664 Building Maintenance Total Dir Labor 472,472 101,808 244,509 126,154
21 Total 472,472 101,808 244,509 126,154
22
24 22701 ERM -Enterprise Risk Mgmnt - Admn Alloc-Fixed 112,789 37,559 37,559 37,671
25 22702 ERM -Enterprise Risk Mgmnt - Initia Alloc-Fixed 155,085 51,643 51,643 51,798
26 22703 ERM-Bus Cont Pl Prog Admin & Support Alloc-Fixed 28,197 9,390 9,390 9,418
27 22704 CP - Strategic and Business Planning Alloc-Fixed 15,688 5,224 5,224 5,240
28 22705 ERM - Corporate Scorecard Alloc-Fixed 31,376 10,448 10,448 10,480
29 22706 ERM Business Process Maintenance Alloc-Fixed 43,926 17,571 13,178 13,178
30 22708 ERM Adminstration Total Dir Labor 31,376 6,761 16,237 8,378
31 22709 ERM Management Total Dir Labor 12,550 2,704 6,495 3,351
32 22710 Employee Development Total Dir Labor 34,514 7,437 17,861 9,215
33 22711 FAP Admin - FCM Cap Adjustments Total Dir Labor 12,550 2,704 6,495 3,351
34 22712 FAP Admin - Risk Policy Assessments Total Dir Labor 15,688 3,380 8,119 4,189
35 22713 FAP Admin - MEC/Financials Total Dir Labor 39,534 8,519 20,459 10,556
36 22714 FAP Analysis Total Dir Labor 75,302 16,226 38,970 20,106
37 22715 FAP Rules / regulatory Total Dir Labor 37,651 8,113 19,485 10,053
38 22716 FAM Rebuild Total Dir Labor 15,688 3,380 8,119 4,189
39 22717 3rd Party FTRs Total Dir Labor 12,550 2,704 6,495 3,351
40 22718 CAPA 2.0 Total Dir Labor 87,853 18,931 45,465 23,457
41 22719 Human Performance Improvement Total Dir Labor 25,101 5,409 12,990 6,702
42 22720 Business Process Change Management Total Dir Labor 50,202 10,817 25,980 13,404
43 22721 Corp Strategic Risk Total Dir Labor 25,101 5,409 12,990 6,702
44 22722 Corp Strategic Plan Total Dir Labor 25,101 5,409 12,990 6,702
45 22724 FEAP Total Dir Labor 1,255 270 649 335
46 22726 Project Risk Management Meeting Total Dir Labor 6,275 1,352 3,247 1,676
47 22727 ERM Business Analysis Total Dir Labor 81,578 17,578 42,217 21,782
48 23003 Safety & Security Total Dir Labor 1,255 270 649 335
49 23006 Business Continuity Planning Total Dir Labor 34,514 7,437 17,861 9,215
50 25006 ERM - Business Process Maintenance Alloc-Fixed 58,881 26,496 26,496 5,888
51 25008 QMS - Quality Management System Alloc-Fixed 42,296 14,085 14,085 14,127
52 25011 Corrective Action/Preventive Action Alloc-Fixed 223,912 74,563 74,563 74,787
53 25012 Business Process Improvement Alloc-Fixed 130,524 43,465 43,465 43,595
54 25013 Tariff & Governance Documents Compliance Program Alloc-Fixed 7,139 1,785 1,785 3,570
55 25014 EtQ Tools Dev & Support Total Dir Labor 125,504 27,044 64,950 33,511
56 Total 1,600,955 454,084 676,559 470,313
57
59 12661 Employee Affairs (Recreation Committee) Total Dir Labor 2,070 446 1,071 553
60 12701 Recruiting/Interviewing Total Dir Labor 180,704 38,938 93,516 48,250
61 12901 Benefit Administration Total Dir Labor 225,880 48,673 116,895 60,312
62 12951 Compensation Total Dir Labor 180,704 38,938 93,516 48,250
63 12961 HR - General Total Dir Labor 993,872 214,160 514,340 265,373
64 12962 HR - Training Total Dir Labor 677,640 146,018 350,686 180,936
65 Total 2,260,870 487,173 1,170,025 603,672
DIRECT LABOR COST ALLOCATIONS TO SCHEDULES BY COST CATEGORY
TEST YEAR 2014
Exhibit 3 (RCL-3)
Schedule 4.0
Page 2 of 9
Line Allocation
(a) (b) (c) (d) (e) (f) (g)
TEST YEAR 2014
2 8301 GC - Federal Regulatory Total Dir Labor 68,244 14,705 35,317 18,222
3 12423 GC - Financial Assurance Policy (FAP) Total Dir Labor 136,487 29,410 70,634 36,443
4 12502 Board of Directors Total Dir Labor 177,433 38,233 91,824 47,376
5 12504 GC - Self-funding Project/Tariff Total Dir Labor 81,892 17,646 42,380 21,866
6 12505 Administration of OATT Alloc-Fixed 272,974 272,974 - -
7 12508 Energy Markets/Complaints/Rule Changes Alloc-Fixed 47,771 - 47,771 -
8 12509 Market Monitoring and Sanctions Alloc-Fixed 68,244 - 34,122 34,122
9 12514 NEPOOL Participants Committee Total Dir Labor 68,244 14,705 35,317 18,222
10 12517 Administrative and Clerical Support Total Dir Labor 477,705 102,936 247,218 127,551
11 12520 Market Monitoring Rules/Regulations Alloc-Fixed 341,218 - 136,487 204,731
12 12521 GC - Billing Disputes Total Dir Labor 6,824 1,471 3,532 1,822
13 12523 NEPOOL Information Policy Total Dir Labor 54,595 11,764 28,253 14,577
14 12544 FERC Proceedings Total Dir Labor 204,731 44,115 105,950 54,665
15 12559 General Corporate Total Dir Labor 756,410 162,991 391,450 201,968
16 12587 Capacity Market Development Alloc-Fixed 518,651 - - 518,651
17 12588 Web Content Management Total Dir Labor 552,530 119,059 285,941 147,530
18 12595 GC - Brown Rudnick - NEEWS Transmission Sitting Alloc-Fixed 40,946 - 28,662 12,284
19 12663 Public Information Total Dir Labor 1,001,712 215,849 518,397 267,466
20 12669 Government Affairs Total Dir Labor 1,124,017 242,203 581,691 300,122
21 Total 6,000,628 1,288,064 2,684,945 2,027,619
22
24 15001 Audit - Indirect Mgmnt Duties Total Dir Labor 386,220 83,223 199,873 103,124
25 15002 Audit- Personnel Management Total Dir Labor 30,172 6,501 15,614 8,056
26 15003 Audit- Budget & Forecasting Total Dir Labor 7,543 1,625 3,904 2,014
27 15004 Audit- Audit Follow-up Activities Total Dir Labor 15,086 3,251 7,807 4,028
28 15005 Audit - Audit & Finance Committee Total Dir Labor 22,629 4,876 11,711 6,042
29 15006 Audit- Internal Audit Business Process Update Total Dir Labor 7,543 1,625 3,904 2,014
30 15007 Audit- Annual Audit Work Plan Total Dir Labor 22,629 4,876 11,711 6,042
31 15008 Audit-Training Total Dir Labor 45,258 9,752 23,421 12,084
32 15020 Internal Audit - Finance Total Dir Labor 37,715 8,127 19,518 10,070
33 15021 Audit- Perfomance Measurements Total Dir Labor 15,086 3,251 7,807 4,028
34 15022 Audit- Vendor Contracts Total Dir Labor 15,086 3,251 7,807 4,028
35 15023 Audit- Wire Transfers Total Dir Labor 7,543 1,625 3,904 2,014
36 15031 Audit - Employee Expense Reporting Total Dir Labor 7,543 1,625 3,904 2,014
37 15066 Audit- Day Ahead Markets/Settlements Total Dir Labor 22,629 4,876 11,711 6,042
38 15085 Audit - Information Technology Total Dir Labor 90,516 19,504 46,843 24,168
39 15040 Audit-Operations Total Dir Labor 173,488 37,383 89,782 46,323
40 15110 External Audit - Operations Total Dir Labor 75,430 16,254 39,036 20,140
41 15133 Audit- Satellite Reviews Total Dir Labor 7,543 1,625 3,904 2,014
42 15161 External Audit- Benefits Audit Total Dir Labor 15,086 3,251 7,807 4,028
43 15186 Ext Audit - SAS 70 Direct Support Total Dir Labor 22,629 4,876 11,711 6,042
44 15192 IA Special Projects - Data Mining - Audit Command Language Impl Total Dir Labor 7,543 1,625 3,904 2,014
45 25702 External Audit - SAS 70 Alloc-Fixed 74,622 - 74,622 -
46 Total 1,109,537 223,004 610,202 276,331
47
48 701 COO-Adm
49 19001 COO - NEPOOL Committee Support Total Dir Labor 27,485 7,366 13,180 6,939
50 19002 COO - Regional Committee Support Total Dir Labor 27,485 7,366 13,180 6,939
51 19003 COO - National Committee Support Total Dir Labor 27,485 7,366 13,180 6,939
52 19005 COO - Indirect Supervision/Clerical Support Total OPS Labor 1,374,251 368,320 659,001 346,930
53 19012 Changes to the Forward Capacity Market Alloc-Fixed 436,231 - - 436,231
54 19013 Changes Relevant to Fuel Security Alloc-Fixed 22,434 - 17,947 4,487
55 Total 1,915,371 390,419 716,488 808,463
56
58 14703 TPC - NEPOOL Committee Support OS Labor 356,090 197,797 68,841 89,453
59 14706 TPC - Indirect Supervision/Clerical Support OS Labor 17,189 9,548 3,323 4,318
60 14711 ISO TMS Tariff-Section 2 - (OATT) and Agreements Support Alloc-Fixed 278,114 92,612 92,612 92,890
61 14715 EIPC - Non DOE Funded/Unallowable Alloc-Fixed 98,416 - - 98,416
62 Total 749,809 299,957 164,776 285,077
63
65 14801 ROC - Compliance Monitoring Alloc-Fixed 803,183 321,273 321,273 160,637
66 14803 ROC - Regional Committee Support OS Labor 9,274 4,637 - 4,637
67 14804 ROC - National Committee Support OS Labor 223,332 111,666 - 111,666
68 14806 ROC - Employee Development OS Labor 18,549 10,303 3,586 4,660
69 14807 ROC - Compliance Audit OS Labor 18,549 9,274 - 9,274
70 14808 ROC - Change Management Alloc-Fixed 9,274 4,173 927 4,173
71 14809 ROC - Tariff Compliance Alloc-Fixed 102,017 30,605 61,210 10,202
72 14810 ROC - NERC Self Certifications Alloc-Fixed 46,371 39,416 - 6,956
73 Total 1,230,549 531,348 386,997 312,204
Exhibit 3 (RCL-3)
Schedule 4.0
Page 3 of 9
Line Allocation
(a) (b) (c) (d) (e) (f) (g)
TEST YEAR 2014
2 14405 System Ops Mgt & Adm - Indirect Supervision/Clerical Support SOA Labor 208,448 71,998 96,762 39,689
3 Total 208,448 71,998 96,762 39,689
4
5 101 Operations
6 14001 Ops - Generation Dispatch Alloc-Fixed 2,563,285 - 2,153,159 410,126
7 14002 Ops - Transmission Operations Alloc-Fixed 1,787,971 1,430,377 89,399 268,196
8 14304 Ops - Advanced Scheduling and Forecasting Alloc-Fixed 1,662,971 83,149 1,313,747 266,075
9 14402 Ops - Operations Training Alloc-Fixed 1,662,971 665,188 665,188 332,594
10 14413 OS - Operations Support Training Development Alloc-Fixed 512,657 205,063 205,063 102,531
11 14564 Ops - Indirect Supervision/Clerical Support OPS Labor 1,350,643 377,594 747,766 225,283
12 14702 TPC - Procedure Documentation Alloc-Fixed 429,390 171,756 171,756 85,878
13 Total 9,969,888 2,933,127 5,346,079 1,690,683
14
16 14454 TSO - Indirect Supervision/Clerical Support TSO Labor 705,456 228,386 337,268 139,802
17 14455 TSO - Employee Development TSO Labor 497,008 160,903 237,612 98,493
18 14462 OSS - General Systems Operations Support TSO Labor 803,715 260,197 384,245 159,274
19 14469 OSS C10/C30 Audits Alloc-Fixed 122,683 - 98,146 24,537
20 14470 OSS Resource Performance Monitoring Alloc-Fixed 122,683 - 98,146 24,537
21 18361 OS - Transmission Studies, Operations, OASIS Support Alloc-Fixed 2,000,089 1,600,071 100,004 300,013
22 18381 OS - Transmission Outage Applications Alloc-Fixed 994,016 795,213 49,701 149,102
23 18382 OSS - Trans Out Ap Lg Term Alloc-Fixed 745,512 - - 745,512
24 Total 5,991,163 3,044,771 1,305,123 1,641,269
25
26 System Operations Support
27 14755 Winter 2013/14 Reliability Project Alloc-Fixed 1,326,221 - 265,244 1,060,977
28 Total 1,326,221 - 265,244 1,060,977
29
31 19101 MO - NEPOOL Committee Support MOA Labor 16,562 - 11,593 4,969
32 19104 MO - Indirect Supervision/Clerical Support MOA Labor 745,292 - 521,705 223,588
33 19105 Employee Development MOA Labor 16,562 - 11,593 4,969
34 19112 Customer Support MOA Labor 4,141 - 2,898 1,242
35 19120 CEII Requests Total Dir Labor 24,843 5,354 12,856 6,633
36 19121 Membership/Participant Support Alloc-Fixed 8,281 - 4,141 4,141
37 19122 DR/BLTS Issues Management Total Dir Labor 35,420 7,633 18,330 9,457
38 Total 851,101 12,987 583,117 254,998
39
41 16101 Market Power Monitoring and Mitigation Alloc-Fixed 1,437,858 - 1,006,500 431,357
42 16102 Regulatory Activities Alloc-Fixed 287,866 - 201,506 86,360
43 16103 Administration Supervision and Clerical Support Alloc-Fixed 257,478 - 180,234 77,243
44 16111 Employee Development MMM Labor 209,500 - 146,650 62,850
45 16115 Analysis & Internal Reports MMM Labor 353,433 - 247,403 106,030
46 16121 FCM Market Monitoring Alloc-Fixed 136,911 - - 136,911
47 Total 2,683,046 - 1,782,295 900,751
48
50 21901 Day Ahead Market Administration Alloc-Fixed 299,931 - 299,931 -
51 21902 Real Time Price Verification Alloc-Fixed 299,931 - 299,931 -
52 21903 FTR/ARR Administration Alloc-Fixed 35,420 17,710 17,710 -
53 21904 MA - NEPOOL Committee Support MA Labor 70,841 - 68,604 2,237
54 21906 MA - National Committee Support MA Labor 8,855 - 8,575 280
55 21907 MA - Indirect Supervision/Clerical Support MA Labor 374,205 - 362,388 11,817
56 21908 Employee Development MA Labor 106,261 - 102,906 3,356
57 21909 Customer Support MA Labor 70,841 - 68,604 2,237
58 21913 MA-Data Collection/Report Writing Alloc-Fixed 177,102 - 177,102 -
59 21915 FTR/Auction Administration Alloc-Fixed 265,650 - 265,650 -
60 21916 Forward Reserve Market - Administration Alloc-Fixed 17,710 - - 17,710
61 21917 Real Time Price Finalization Alloc-Fixed 106,261 - 106,261 -
62 21951 FCM Annual Reconfiguration Auction Administration Alloc-Fixed 35,420 - - 35,420
63 21953 FCM Monthly Administration Alloc-Fixed 177,102 - - 177,102
64 21956 Changes in Supply Offers (Hourly Reoffers) Alloc-Fixed 306,377 - 306,377 -
65 Total 2,351,909 17,710 2,084,039 250,159
Exhibit 3 (RCL-3)
Schedule 4.0
Page 4 of 9
Line Allocation
(a) (b) (c) (d) (e) (f) (g)
TEST YEAR 2014
2 1701 Billing Statements - Energy Alloc-Fixed 57,114 - 57,114 -
3 1702 Billing Statements - Transmission Alloc-Fixed 42,836 42,836 - -
4 1713 Settlements - ISO Tariff Total Dir Labor 49,975 10,769 25,863 13,344
5 1714 MAS - Billable Tariff Re-billings Alloc-Fixed 1,428 1,428 - -
6 2005 Settlements - Customer Service STLM Labor 49,975 7,390 24,345 18,240
7 2007 Settlements - NEPOOL Committees Support STLM Labor 28,557 4,223 13,911 10,423
8 2008 Settlements - Admin support (ISO) STLM Labor 128,507 19,004 62,600 46,903
9 2009 Settlements - Indirect Supervision/Clerical Support STLM Labor 514,699 76,114 250,729 187,856
10 2010 Settlements - Employee Development STLM Labor 207,735 30,720 101,196 75,820
11 2013 Settlements - FTR Administration Alloc-Fixed 28,557 - 28,557 -
12 2014 Billing Statements - NCPC Alloc-Fixed 171,343 - 85,671 85,671
13 2020 Settlements - Billing Disputes Total Dir Labor 21,418 4,615 11,084 5,719
14 2021 Settlements-Analysis & Reporting Total Dir Labor 199,900 43,074 103,450 53,375
15 2022 Settlements-Demand Response Alloc-Fixed 35,696 - - 35,696
16 2024 Settlements - ASM Regulation Alloc-Fixed 14,279 - - 14,279
17 2025 Settlements - ASM Locational Forward Reserve Alloc-Fixed 99,950 - - 99,950
18 2026 Settlements - Batch Processing Total Dir Labor 35,696 7,692 18,473 9,531
19 2032 Settlements - Billing STLM Labor 42,836 6,335 20,867 15,634
20 2033 Settlements - Market Analysis Alloc-Fixed 171,343 - 171,343 -
21 2034 Settlements - COPQ Alloc-Fixed 99,950 14,992 39,980 44,977
22 2036 MAS - Market Analysis - Projects Alloc-Fixed 7,139 - 7,139 -
23 2037 MAS - Bill Job Aid Alloc-Fixed 2,856 428 1,713 714
24 2039 MAS - BITT and Business Tools Alloc-Fixed 7,139 1,071 4,284 1,785
25 2043 MAS - Release Checkout and Support Alloc-Fixed 14,279 2,142 8,567 3,570
26 2044 MAS - EQR Reporting Alloc-Fixed 2,856 428 1,713 714
27 2048 MAS - FCM Alloc-Fixed 214,178 - - 214,178
28 2049 MAS - Product Testing Alloc-Fixed 42,836 - 34,269 8,567
29 2051 MAS - Legal Support Alloc-Fixed 1,428 - 714 714
30 2052 MAS - FERC Data Request Alloc-Fixed 49,975 - 24,987 24,987
31 2053 MAS - Tariff Change Coordination (TCC) Total Dir Labor 129,935 28,001 67,241 34,693
32 2054 MAS - Markets Development Support Total Dir Labor 7,139 - 3,570 3,570
33 Total 2,481,551 301,262 1,169,380 1,010,909
34
36 3000 MOSS - Hourly Settlements Support Alloc-Fixed 200,792 - 100,396 100,396
37 3002 MOSS - Monthly Settlements Support Alloc-Fixed 200,792 100,396 - 100,396
38 3003 MOSS - Market Analysis Support Alloc-Fixed 109,523 - 109,523 -
39 3004 MOSS - Generation & Load Admin Support Alloc-Fixed 200,792 - 200,792 -
40 3005 MOSS - Demand Resource Admin Support Alloc-Fixed 292,061 - 292,061 -
41 3006 MOSS - Customer Service Alloc-Fixed 41,071 - 41,071 -
42 3007 MOSS - NEPOOL Committees Support Alloc-Fixed 4,563 - 2,282 2,282
43 3008 MOSS - Admin Support Alloc-Fixed 9,127 - 9,127 -
44 3009 MOSS - Indirect Supervision (Principal Analysts only) Alloc-Fixed 4,563 - 4,563 -
45 3010 MOSS - Employee Development Alloc-Fixed 22,817 - 22,817 -
46 3011 MOSS - Release Checkout and Support Alloc-Fixed 36,508 - 36,508 -
47 3012 MOSS - FERC Data Request Alloc-Fixed 63,888 - 63,888 -
48 3013 MOSS - Tariff Change Coordination (TCC) Total Dir Labor 4,563 983 2,362 1,218
49 3014 MOSS - Markets Development Support Alloc-Fixed 9,127 - 4,563 4,563
50 Total 1,200,189 101,379 889,954 208,856
51
53 16001 Participant/membership support Alloc-Fixed 51,018 - 25,509 25,509
54 16006 Call Support (HEAT) Alloc-Fixed 884,319 229,923 583,650 70,745
55 16401 MSS NEPOOL Reliability Committee MS Labor 17,006 - 15,306 1,701
56 16407 MSS Employee Development MS Labor 17,006 - 15,306 1,701
57 16408 Miscellaneous and Administrative Activities MS Labor 51,018 - 45,917 5,102
58 16414 MSS Direct Customer Contact MS Labor 85,031 - 76,528 8,503
59 16419 Asset Registration Implemented Alloc-Fixed 141,682 - 141,682 -
60 16420 Asset Registration Reivew Alloc-Fixed 141,682 - 141,682 -
61 16421 C10/C30 Audits Alloc-Fixed 184,024 - 154,580 29,444
62 16422 Claimed Capability Audits Alloc-Fixed 70,841 - 70,841 -
63 16424 Demand Resource Audits Alloc-Fixed 212,523 - 212,523 -
64 16425 DR Registration Implemented Alloc-Fixed 70,841 - 70,841 -
65 16426 DR Registration Review Alloc-Fixed 17,710 - 17,710 -
66 16431 Network Model Releases and PNODE Activation/Deactivation Alloc-Fixed 17,710 12,397 5,313 -
67 16432 New Generation Coordination and Registration Alloc-Fixed 35,420 - 35,420 -
68 16433 Passive Resource Performance and M&V Review Alloc-Fixed 35,420 - 35,420 -
69 16434 QMS/CAPA Process and Procedure Updates Total Dir Labor 283,364 61,065 146,641 75,658
70 16435 Resource Performance Monitoring Alloc-Fixed 79,696 - 79,696 -
71 Total 2,396,312 303,385 1,874,564 218,363
72
74 16021 Training development Alloc-Fixed 621,196 - 310,598 310,598
75 Total 621,196 - 310,598 310,598
Exhibit 3 (RCL-3)
Schedule 4.0
Page 5 of 9
Line Allocation
(a) (b) (c) (d) (e) (f) (g)
TEST YEAR 2014
2 18148 SP - NEPOOL Committee Support Alloc-Fixed 37,463 - 37,463 -
3 18150 SP - Regional Transmission Expansion Plan Alloc-Fixed 378,777 284,083 94,694 -
4 18152 States Requests Alloc-Fixed 306,816 153,408 76,704 76,704
5 18401 SP - Regional Activities Alloc-Fixed 258,457 258,457 - -
6 18531 SP - Indirect Supervision/Clerical Support SP Labor 154,698 38,406 27,426 88,866
7 Total 1,136,210 734,353 236,287 165,570
8
10 14315 PSR - Employee Development PSR Labor 74,926 8,141 3,781 63,003
11 18101 LF - Develop Load Forecast Alloc-Fixed 187,315 37,463 37,463 112,389
12 18121 SP - Operations Forecast Support Alloc-Fixed 74,926 14,985 14,985 44,956
13 18131 LF - Other Load Forecasting Activities Alloc-Fixed 37,463 7,493 7,493 22,478
14 17101 PSR Analysis Alloc-Fixed 1,014,185 - 709,929 304,255
15 17131 PSR - Calculate Objective Capability Alloc-Fixed 149,852 - - 149,852
16 17251 PSR-Regional Bulk Power System Assessment Alloc-Fixed 299,703 149,852 149,852 -
17 17331 PSR NEPOOL Committee Support PSR Labor 56,194 6,106 2,836 47,252
18 17361 PSR Regional Committee Support PSR Labor 37,463 4,071 1,891 31,502
19 17401 PSR Indirect Supervisory Activities PSR Labor 149,852 16,283 7,562 126,007
20 17403 TCA Application Review Alloc-Fixed 69,318 - - 69,318
21 17405 Energy Efficiency Forecast Alloc-Fixed 37,463 - - 37,463
22 17406 SP - North American Energy Standards Board (NAESB) Alloc-Fixed 28,097 - 14,049 14,049
23 17407 SP - National Standards Work Alloc-Fixed 28,097 - 14,049 14,049
24 17408 MA-EEAC Total Dir Labor 18,731 4,037 9,694 5,001
25 17501 FCA - Evaluate Existing Resource De-list Bids Alloc-Fixed 170,041 - - 170,041
26 17502 FCA - Preliminary Review of Show of Interest Applications Alloc-Fixed 37,463 - - 37,463
27 17503 FCA - New Resource Qualification Support Alloc-Fixed 391,958 - - 391,958
28 17504 FCA - Perform Transmission / Topology Assessments Alloc-Fixed 74,926 - - 74,926
29 17505 FCA - Perform Existing Resource Qualification Alloc-Fixed 74,926 - - 74,926
30 17507 FCA - Auctions & Filings Alloc-Fixed 449,555 - - 449,555
31 17508 FCA - Annual Reconfiguration Auction Support/Reliability Reviews Alloc-Fixed 37,463 - - 37,463
32 Total 3,499,916 248,430 973,582 2,277,903
33
35 11201 System Design Task Force Alloc-Fixed 18,905 18,905 - -
36 18201 TR - Transmission System Assessment Alloc-Fixed 2,956,467 2,956,467 - -
37 18261 TR - Transmission Tariff Information Requirements Alloc-Fixed 6,302 6,302 - -
38 18301 TR - NEPOOL Administrative Support - Schedule 1 Tariff Alloc-Fixed 48,116 48,116 - -
39 18333 TR - General SIS/FS Alloc-Fixed 575,996 575,996 - -
40 18334 TR - Indirect Supervision/Clerical Support TP Labor 603,030 603,030 - -
41 18335 TR - Regulatory Activities - NPCC TP Labor 44,107 44,107 - -
42 18336 TR - National Activities TP Labor 4,297 4,297 - -
43 18337 TR - Regulatory Activities TP Labor 65,885 65,885 - -
44 18338 TR - Employee Development TP Labor 94,520 94,520 - -
45 18343 FERC Order 1000 Alloc-Fixed 537,140 - - 537,140
46 Total 4,954,766 4,417,625 - 537,140
47
49 801 Program Management - Administration Total Dir Labor 487,587 105,065 252,331 130,190
50 1661 ISO Program Management Alloc-Fixed 302,335 - 211,635 90,701
51 25002 PMO Support Alloc-Fixed 317,454 95,236 111,109 111,109
52 25739 IT BCC Support Alloc-Fixed - - - -
53 25822 System Restoration and Blackstart Resource Resource Mgmnt Alloc-Fixed 168,490 168,490 - -
54 25849 Allowable Smart Grid SIDU Alloc-Fixed 8,118 1,218 1,218 5,683
55 25910 Generation Control Applications (GCA) Phase II Alloc-Fixed 36,508 18,254 18,254 -
56 25911 Strategic Planning Initiatives Alloc-Fixed 37,463 - - 37,463
57 25912 Generation Auditing - Claim 10/30 Alloc-Fixed 73,015 - - 73,015
58 25914 Divisional Accounting (for Market Participants) Alloc-Fixed 109,523 23,600 56,679 29,244
59 25926 Hourly Market Alloc-Fixed 177,102 70,841 53,131 53,131
60 Total 1,717,595 482,704 704,357 530,535
61
63 21201 Business Architecture and Technology Total Dir Labor 1,900,543 409,529 983,552 507,462
64 21203 BAT - Employee Development Total Dir Labor 16,144 3,479 8,354 4,310
65 Total 1,916,686 413,008 991,906 511,772
66
68 21001 Markets Development Total Dir Labor 1,894,706 408,272 980,531 505,903
69 21002 MD - Indirect Supervision/Clerical Support Total Dir Labor 56,085 12,085 29,024 14,975
70 21003 MD - Employee Development Total Dir Labor 107,619 23,190 55,694 28,735
71 21007 MD - Budget/Forecast Support Total Dir Labor 22,434 4,834 11,610 5,990
72 21102 ME - Indirect Supervision/Clerical Support Total Dir Labor - - - -
73 16607 National Committee Support MD Labor 978,430 5,863 521,989 450,578
74 Total 3,059,273 454,244 1,598,848 1,006,181
Exhibit 3 (RCL-3)
Schedule 4.0
Page 6 of 9
Line Allocation
(a) (b) (c) (d) (e) (f) (g)
TEST YEAR 2014
1 407 Market Design
2 22601 MDes-Direct Supervision&Clerical Total Dir Labor 112,169 24,170 58,049 29,950
3 22602 MDes-Committee Meetings Total Dir Labor 70,160 15,118 36,309 18,733
4 22606 MDes-Governing Documents Total Dir Labor 276,299 59,537 142,988 73,774
5 Total 458,629 98,825 237,345 122,458
6
8 22401 Demand Response Total Dir Labor 135,875 29,278 70,317 36,280
9 22402 DR-Regulatory Ccmmittees and Working Groups Total Dir Labor 37,148 8,005 19,224 9,919
10 22404 RFP Linkages Total Dir Labor 192,022 41,377 99,374 51,272
11 Total 365,044 78,660 188,915 97,470
12
14 6517 Employee Development - Hardware/Software Total Dir Labor 495,394 106,748 256,372 132,275
15 6519 Indirect Supervision and Clerical Support Total Dir Labor 2,339,542 504,125 1,210,739 624,678
16 6552 IT - Security Total Dir Labor 295,388 63,650 152,867 78,871
17 6556 IT - Budget Preparation, Tracking & Forecast Total Dir Labor 140,742 30,327 72,835 37,579
18 6557 IT - Information Technology Committee Total Dir Labor 30,566 6,586 15,818 8,161
19 22501 IT CM/QA - Change Management Support Alloc-Fixed 146,779 66,051 66,051 14,678
20 22502 IT CM/QA - QA Support Alloc-Fixed 10,379 3,529 3,425 3,425
21 22505 IT CM/QA - Administrative Alloc-Fixed 316,219 107,514 104,352 104,352
22 Total 3,775,008 888,530 1,882,458 1,004,020
23
25 6550 IT - Operations Data Communicstions Support Total Dir Labor 351,477 75,736 181,893 93,847
26 6602 Help Desk Support Total Dir Labor 201,197 43,354 104,122 53,721
27 6615 IT - Host Computer Monitoring Alloc-Fixed 1,058,385 - 529,193 529,193
28 6516 Communications Alloc-Fixed 10,381 2,237 5,372 2,772
29 6616 IT - Desktop Support Total Dir Labor 456,772 98,425 236,384 121,962
30 6617 IT - System Administration - Unix Total Dir Labor 573,436 123,564 296,760 153,112
31 6618 IT - System Administration - Windows Total Dir Labor 947,653 204,200 490,421 253,032
32 6619 IT - Systems Support Misc Total Dir Labor 218,993 47,189 113,331 58,473
33 6620 IT - Systems Support - Security Total Dir Labor 83,049 17,895 42,979 22,175
34 6621 IT - Network Support Total Dir Labor 445,402 95,975 230,500 118,926
35 6622 IT - Network/Systems Compliance 2009 Initiative Total Dir Labor 48,445 10,439 25,071 12,935
36 6623 IT - Asset Management Total Dir Labor 275,398 59,343 142,521 73,534
37 Total 4,670,588 778,358 2,398,547 1,493,682
38
40 6539 IT Policy/Procedures Program Total Dir Labor 34,024 7,331 17,608 9,085
41 6540 IT Security Compliance and Reporting Total Dir Labor 608,996 131,227 315,162 162,607
42 6540A IT Controls Assessment Total Dir Labor 31,136 6,709 16,113 8,314
43 6540D IT Intrusion Monitoring and Response Total Dir Labor 103,788 22,364 53,712 27,712
44 6540E IT System Compliance Enhancement Total Dir Labor 114,167 24,601 59,083 30,484
45 6541 IT Security SW Tools Program Total Dir Labor 51,894 11,182 26,856 13,856
46 6543 Critical Infrastructure Protection WG (NERC) Total Dir Labor 54,781 11,804 28,350 14,627
47 6546 IT Internal Audit Support Total Dir Labor 23,645 5,095 12,237 6,313
48 6548 CIP Compliance & Monitoring Total Dir Labor 175,303 37,774 90,721 46,807
49 1,197,735 258,088 619,841 319,806
51 6571 DBA Support - MOPS MOA Labor 871,952 187,888 451,245 232,819
52 6591 Data Architect - MOPS MOA Labor 117,831 25,390 60,979 31,462
53 6594 IT Data Analyst MOA Labor 117,831 25,390 60,979 31,462
54 6595 IT WEB Application Support Total Dir Labor 428,123 92,252 221,558 114,312
55 21805 IT Markets Software Development - Enterprise Alloc-Fixed 23,566 5,078 12,196 6,292
56 21806 IT Markets Software Support - Enterprise Alloc-Fixed 546,827 117,830 282,989 146,008
57 21706 IT Markets Software Development - Enterprise Alloc-Fixed 565,591 121,874 292,699 151,018
58 21801 IT Markets Software Support - Settlements STLM Labor 312,922 - 250,338 62,584
59 21803 IT Markets Software Support - Finance Total Dir Labor 285,415 - 228,332 57,083
60 21804 IT Markets Software Support - Mitigation MMM Labor 356,458 - 285,167 71,292
61 21802 IT Markets Software Support - Publishing MSP Labor 261,630 - 209,304 52,326
62 21811 FSIT - Single Sign On Support Alloc-Fixed 95,138 - 76,111 19,028
63 21819 Ceridian Support Total Dir Labor 47,569 10,250 24,618 12,701
64 21821 Compliance Management Alloc-Fixed 23,785 5,125 12,309 6,351
65 Total 4,054,639 591,078 2,468,823 994,738
Exhibit 3 (RCL-3)
Schedule 4.0
Page 7 of 9
Line Allocation
(a) (b) (c) (d) (e) (f) (g)
TEST YEAR 2014
2 21707 Application Analysis and Conceptual Design Alloc-Fixed 797,703 - 638,162 159,541
3 21710 ESD - Indirect Supervision and Administration Alloc-Fixed 459,808 - 367,847 91,962
4 21711 EWR and CAPA Analysis Alloc-Fixed 178,795 - 143,036 35,759
5 Total 1,436,306 - 1,149,045 287,261
6
8 21600 EMS - Indirect Supervision and Administration Total Dir Labor 249,181 53,694 128,954 66,534
9 21602 EMS - Applications Support Total Dir Labor - - - -
10 21604 EMS/DTS Support Total Dir Labor 636,120 508,896 127,224 -
11 21605 EMS - DAM Support Total Dir Labor 891,109 178,222 534,666 178,222
12 21606 EMS - Real-time Market Support Total Dir Labor 1,036,597 207,319 621,958 207,319
13 Total 2,813,008 948,131 1,412,802 452,075
14
15
17 21650 PSMM- Indirect Supervision and Administration Total Dir Labor 95,570 20,595 49,458 25,517
18 21654 PSMM- NX9 Administration Alloc-Fixed 100,154 40,061 40,061 20,031
19 21651 PSMM- Power System Modeling Alloc-Fixed 537,508 215,003 215,003 107,502
20 21652 PSMM- System Application Support Alloc-Fixed 156,198 62,479 62,479 31,240
21 21655 PSMM- ICCP Support Alloc-Fixed 452,974 181,190 181,190 90,595
22 21656 PSMM- Transmission Project Management Alloc-Fixed 22,055 17,644 4,411 -
23 21657 PSMM- Model On Demand Admin Alloc-Fixed 287,591 - - 287,591
24 21658 PSMM- Model on Demand Case Requests Alloc-Fixed 46,859 - - 46,859
25 Total 1,698,910 536,973 552,602 609,335
26
27 Total ISO 95,712,902 $ 24,412,662 $ 44,781,561 $ 26,518,678 $

100.0% 25.5% 46.8% 27.7%

Exhibit 3 (RCL-3)
Schedule 4.0
Page 8 of 9
Line Allocation
(a) (b) (c) (d) (e) (f) (g)
TEST YEAR 2014
1 Cost Ctr. Summary Of Departmental Labor Allocation Using "Alloc-Fixed" Allocators
2 307 Administration-CEO - $ - $ - $ - $
3 Adm Labor 0.00% 0.00% 0.00% 0.00%
4 302 Finance 17,665 $ 7,949 $ 7,949 $ 1,767 $
5 Fin Labor 100.00% 45.00% 45.00% 10.00%
6 108 Building Services - $ - $ - $ - $
7 Bldg Labor 0.00% 0.00% 0.00% 0.00%
8 310 Enterprise Risk Management 849,814 $ 292,227 $ 287,835 $ 269,751 $
9 ERM Labor 100.00% 34.39% 33.87% 31.74%
10 301 Human Resources - $ - $ - $ - $
11 HR Labor 0.00% 0.00% 0.00% 0.00%
12 306 Legal Department 1,289,804 $ 272,974 $ 247,042 $ 769,788 $
13 Legal Labor 100.00% 21.16% 19.15% 59.68%
14 305 Internal Audit 74,622 $ - $ 74,622 $ - $
15 IA Labor 100.00% 0.00% 100.00% 0.00%
16 701 COO-Adm 1,915,371 $ 390,419 $ 716,488 $ 808,463 $
17 COO Labor 100.00% 20.38% 37.41% 42.21%
18 702 Reliability and Operations Services 749,809 $ 299,957 $ 164,776 $ 285,077 $
19 COO Labor 100.00% 40.00% 21.98% 38.02%
20 703 Reliability and Operations Compliance 1,230,549 $ 531,348 $ 386,997 $ 312,204 $
21 COO Labor 100.00% 43.18% 31.45% 25.37%
22 105 System Operations - Administration 208,448 $ 71,998 $ 96,762 $ 39,689 $
23 SYSOPS Labor 100.00% 34.54% 46.42% 19.04%
24 101 Operations 9,969,888 $ 2,933,127 $ 5,346,079 $ 1,690,683 $
25 OPS Labor 100.00% 29.42% 53.62% 16.96%
26 103 Operations Support Services 5,991,163 $ 3,044,771 $ 1,305,123 $ 1,641,269 $
27 TSO Labor 100.00% 50.82% 21.78% 27.39%
28 109 System Operations Support 1,326,221 $ - $ 265,244 $ 1,060,977 $
29 TSO Labor 100.00% 0.00% 20.00% 80.00%
30 415 Market Operations - Adm 790,838 $ - $ 551,930 $ 238,908 $
31 MOA Labor 100.00% 0.00% 69.79% 30.21%
32 404 Market Monitoring 2,683,046 $ - $ 1,782,295 $ 900,751 $
33 MMM Labor 100.00% 0.00% 66.43% 33.57%
34 416 Market Operations 2,351,909 $ 17,710 $ 2,084,039 $ 250,159 $
35 MA Labor 100.00% 0.75% 88.61% 10.64%
36 401 Market Anaylsis & Settlements 2,044,627 $ 207,111 $ 943,269 $ 894,248 $
37 STLM Labor 100.00% 10.13% 46.13% 43.74%
38 411 Market Operations Support Services 1,195,625 $ 100,396 $ 887,592 $ 207,637 $
39 MOSS Labor 100.00% 8.40% 74.24% 17.37%
40 406 Market Services 2,112,949 $ 242,320 $ 1,727,924 $ 142,705 $
41 MS Labor 100.00% 11.47% 81.78% 6.75%
42 410 Market Training and Reliability Contracts 621,196 $ - $ 310,598 $ 310,598 $
43 MAR Labor 100.00% 0.00% 50.00% 50.00%
44 204 System Planning 1,136,210 $ 734,353 $ 236,287 $ 165,570 $
45 SP Labor 100.00% 64.63% 20.80% 14.57%
46 203 Resource Adequacy 3,481,184 $ 244,394 $ 963,889 $ 2,272,902 $
47 PSR Labor 100.00% 7.02% 27.69% 65.29%
48 205 Transmission Planning 4,954,766 $ 4,417,625 $ - $ 537,140 $
49 TP Labor 100.00% 89.16% 0.00% 10.84%
50 304 Program Management 1,120,485 $ 354,038 $ 395,346 $ 371,101 $
51 PMO Labor 100.00% 31.60% 35.28% 33.12%
52 315 Business Architecture and Technology - $ - $ - $ - $
53 BAT Labor 0.00% 0.00% 0.00% 0.00%
54 408 Market Development Administration 978,430 $ 5,863 $ 521,989 $ 450,578 $
55 MD Labor 100.00% 0.60% 53.35% 46.05%
56 407 Market Design - $ - $ - $ - $
57 MDES Labor 0.00% 0.00% 0.00% 0.00%
58 409 Demand Resource Strategy - $ - $ - $ - $
59 DR Labor 0.00% 0.00% 0.00% 0.00%
Exhibit 3 (RCL-3)
Schedule 4.0
Page 9 of 9
Line Allocation
(a) (b) (c) (d) (e) (f) (g)
TEST YEAR 2014
Cost Ctr. Summary Of Departmental Labor Allocation Using "Alloc-Fixed" Allocators
1 210 IT Management 473,377 $ 177,094 $ 173,828 $ 122,455 $
2 OTM Labor 100.00% 37.41% 36.72% 25.87%
3 201 IT System/Network & Desktop 1,058,385 $ - $ 529,193 $ 529,193 $
4 ITO Labor 100.00% 0.00% 50.00% 50.00%
5 211 IT Enterprise Applications Support 1,311,564 $ - $ 1,049,251 $ 262,313 $
6 ITDG Labor 100.00% 0.00% 80.00% 20.00%
7 212 IT Cyber Security - $ - $ - $ - $
8 ITCS 0.00% 0.00% 0.00% 0.00%
9 102 IT Energy Management Systems 2,563,826 $ 894,437 $ 1,283,848 $ 385,541 $
10 EMS Labor 100.00% 34.89% 50.08% 15.04%
11 213 IT Enterprise Applications Development 1,436,306 $ - $ 1,149,045 $ 287,261 $
12 ESD 100.00% 0.00% 80.00% 20.00%
13 216 IT Power System Modeling Management 1,603,339 $ 516,377 $ 503,145 $ 583,818 $
14 ITPSM 100.00% 32.21% 31.38% 36.41%
15 Total Direct Labor 55,541,418 $ 15,756,490 $ 23,992,383 $ 15,792,545 $
16 100.00% 28.37% 43.20% 28.43%
17
18 Summary Of Allocations Of Labor Based On Fixed Allocators and Allocated Departmental Labor
19 Total Direct Labor 55,541,418 $ 15,756,490 $ 23,992,383 $ 15,792,545 $
20 Dir Labor 100.00% 28.37% 43.20% 28.43%
21 Total Indirect Labor Labor 40,171,484 $ 8,656,172 $ 20,789,178 $ 10,726,133 $
22 InDir Labor 100.00% 21.55% 51.75% 26.70%
23 Total Labor Expense 95,712,902 $ 24,412,662 $ 44,781,561 $ 26,518,678 $
24 Total Dir Labor 100.00% 25.51% 46.79% 27.71%
Exhibit 3 (RCL-3)
Schedule 5.0
Page 1 of 11
Line Allocation
No. No. Description Factor Total Schedule 1 Schedule 2 Schedule 3 Reference
(a) (b) (c) (d) (e) (f) (g) (h)
2 12651 Adm/Finance/HR - Indirect Administrative Support Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
3 12652 Adm/Finance/HR - NEPOOL Committee Support Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
4 12653 Adm/Finance/HR - Regional Committee Support Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
5 12654 Adm/Finance/HR - National Committee Support Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
6 12655 Adm/Finance/HR - NEPOOL Review Board Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
7
8 302 Finance
9 11601 Payroll Administration Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
10 11701 Accounts Payable Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
11 11702 Procurement Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
12 11901 Billing for Transmission and Energy Settlements Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
13 12001 Budgeting and Forecasting Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
14 12002 ISO Tariff Design Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
15 12005 Credit Admininstration Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
16 12010 Zone/BU/CCC Support Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
17 12012 Forward Capacity Market Production Alloc-Fixed 100.00% 0.00% 0.00% 100.00% Per ISO-NE Staff
18 12015 BCC Construction Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
19 12101 Ledger Closing, Financial Statements and Tax Reporting Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
20 12201 Treasury and Cash Management Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
21 12301 Activity Accounting and Reporting Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
22 25554 Generation Information System Alloc-Fixed 100.00% 45.00% 45.00% 10.00% Per ISO-NE Staff
23 92004 Depreciation Expense 2004 Assets Alloc-Fixed 100.00% 15.86% 55.38% 28.76% Per ISO-NE Staff
25 92006 Depreciation Expense 2006 Assets Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
26 92007 Depreciation Expense 2007 Assets Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
34 99705 SMD Amortization - writeoff Alloc-Fixed 100.00% 0.00% 90.00% 10.00% Per ISO-NE Staff
35 99706 SMD Amortization Alloc-Fixed 100.00% 0.00% 90.00% 10.00% Per ISO-NE Staff
36 99707 Amortization of Land Recovery Alloc-Fixed 100.00% 19.33% 35.58% 45.09% Per ISO-NE Staff
37 99995 NPCC/NERC Dues Alloc-Fixed 100.00% 0.00% 0.00% 100.00% Per ISO-NE Staff
38 99996 Operating Contingency Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
39 99997 Depreciation Accruals Alloc-Fixed 100.00% 18.12% 52.46% 29.42% Per ISO-NE Staff
40 99998 Payroll & Other Accruals Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
41
43 12664 Building Maintenance Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
44 12668 Building Maintenance - Offsite Temporary Offices Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
45
47 22701 ERM -Enterprise Risk Mgmnt - Admn Alloc-Fixed 100.00% 33.30% 33.30% 33.40% Per ISO-NE Staff
48 22702 ERM -Enterprise Risk Mgmnt - Initia Alloc-Fixed 100.00% 33.30% 33.30% 33.40% Per ISO-NE Staff
49 22703 ERM-Bus Cont Pl Prog Admin & Support Alloc-Fixed 100.00% 33.30% 33.30% 33.40% Per ISO-NE Staff
50 22704 ERM - Record Retention Services Alloc-Fixed 100.00% 33.30% 33.30% 33.40% Per ISO-NE Staff
51 22705 ERM - Corporate Scorecard Alloc-Fixed 100.00% 33.30% 33.30% 33.40% Per ISO-NE Staff
52 22706 ERM - Document Management Services Alloc-Fixed 100.00% 40.00% 30.00% 30.00% Per ISO-NE Staff
53 22708 ERM Adminstration Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
54 22709 ERM Management Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
55 22710 Employee Development Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
56 22711 FAP Admin - FCM Cap Adjustments Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
57 22712 FAP Admin - Risk Policy Assessments Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
58 22713 FAP Admin - MEC/Financials Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
59 22714 FAP Analysis Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
60 22715 FAP Rules / regulatory Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
61 22716 FAM Rebuild Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
62 22717 3rd Party FTRs Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
63 22718 CAPA 2.0 Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
64 22719 Human Performance Improvement Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
65 22720 Business Process Change Management Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
66 22721 Corp Strategic Risk Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
67 22722 Corp Strategic Plan Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
68 22723 IRC ERM group Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
69 22724 FEAP Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
70 22726 Project Risk Management Meeting Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
71 22727 ERM Business Analysis Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
72 23001 CP - COS, RMR, and PUSH Alloc-Fixed 100.00% 0.00% 50.00% 50.00% Per ISO-NE Staff
73 23002 CP - Strategic and Business Planning Alloc-Fixed 100.00% 33.30% 33.30% 33.40% Per ISO-NE Staff
74 23003 CP - Safety / Security / Facilities Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
75 23006 Business Continuity Planning Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
76 25006 ERM - Business Process Maintenance Alloc-Fixed 100.00% 45.00% 45.00% 10.00% Per ISO-NE Staff
77 25008 QMS - Quality Management System Alloc-Fixed 100.00% 33.30% 33.30% 33.40% Per ISO-NE Staff
78 25009 QMS - Internal QMS Assessment Alloc-Fixed 100.00% 33.30% 33.30% 33.40% Per ISO-NE Staff
79 25011 Corrective Action/Preventive Action Alloc-Fixed 100.00% 33.30% 33.30% 33.40% Per ISO-NE Staff
80 25012 OE - Business Process Re-Engineering Alloc-Fixed 100.00% 33.30% 33.30% 33.40% Per ISO-NE Staff
81 25013 Tariff & Governance Documents Compliance Program Alloc-Fixed 100.00% 25.00% 25.00% 50.00% Per ISO-NE Staff
82 25014 EtQ Tools Dev & Support Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
ALLOCATION FACTORS BY COST CATEGORY
TEST YEAR 2014
Exhibit 3 (RCL-3)
Schedule 5.0
Page 2 of 11
Line Allocation
(a) (b) (c) (d) (e) (f) (g) (h)
TEST YEAR 2014
2 12661 Employee Affairs (Recreation Committee) Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
3 12701 Recruiting/Interviewing Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
4 12801 Employee Relations Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
5 12901 Benefit Administration Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
6 12951 Compensation Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
7 12961 HR - General Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
8 12962 HR - Training Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
9 13301 Labor Relations Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
10
12 15001 Audit - Indirect Mgmnt Duties Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
13 15002 Audit- Personnel Management Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
14 15003 Audit- Budget & Forecasting Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
15 15004 Audit- Audit Followup Activities Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
16 15005 Audit - Audit & Finance Committee Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
17 15006 Audit- Internal Audit Business Process Update Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
18 15007 Audit- Annual Audit Work Plan Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
19 15008 Audit-Training Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
20 15010 Internal Audit - Operations Alloc-Fixed 100.00% 33.33% 33.33% 33.33% Per ISO-NE Staff
21 15013 Audit - Indirect Admin Support Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
22 15020 Internal Audit - Finance Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
23 15021 Audit- Perfomance Measurements Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
24 15022 Audit- Vendor Contracts Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
25 15023 Audit- Wire Transfers Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
26 15024 Audit- Sarbanes Oxley Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
27 15025 Audit - Timesheets Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
28 15026 Audit - Financial Assurance Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
29 15027 Audit - Business Continuity / Disaster Recovery Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
30 15031 Audit - Employee Expense Reporting Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
31 15040 Audit-Operations Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
32 15041 Audit-Control Room Operations Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
33 15042 Audit-Forecasting Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
34 15043 Audit-Operations Compliance Oversight Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
35 15044 Audit-Transmission System Model Alloc-Fixed 100.00% 50.00% 0.00% 50.00% Per ISO-NE Staff
36 15045 Audit - FTR /ARR Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
37 15046 Audit - Day Ahead Follow Up / Outage Coordination Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
38 15047 Audit -Transmission Cost Allocation Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
39 15058 Audit - Asset Registration Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
40 15066 Audit- Day Ahead Markets/Settlements Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
41 15085 Audit - Information Technology Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
42 15086 Audit-Change Mgmnt/Conf Mgmnt - Mkt Sys (SSAE 16 Support) Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
43 15087 Audit-Logical Access-Files/DB/ Infrastructure - Martket Systems Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
44 15088 Audit- Disaster Recovery Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
45 15089 Audit - Logical Access - Settlements & Financial Systems (SSAE 16Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
46 15090 Audit - Training Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
47 15091 Audit - Logical Access - Energy Management Systems Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
48 15092 Audit - Change Management - Energy Management Systems Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
49 15093 Audit - Change Mgmnt - Settlements & Financial Systems (SSAE 16Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
50 15094 Audit - AREVA Change Control Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
51 15110 External Audit - Operations Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
52 15111 Audit - Ancillary Services Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
53 15112 Audit - Locational ICAP Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
54 15113 Audit - Real Time Demand Response Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
55 15130 External Audit - General Controls Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
56 15131 Audit- NAMS Support Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
57 15132 Audit- Oper Audit Support Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
58 15133 Audit- Satellite Reviews Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
59 15134 Audit- SCADA Operations Reviews Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
60 15136 Audit- SCADA IT Reviews Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
61 15137 Audit- Satellite IT Reviews Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
62 15150 Internal Audit - Standard Market Design Alloc-Fixed 100.00% 3.00% 40.00% 57.00% Per ISO-NE Staff
63 15160 External Audit - Finance Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
64 15161 External Audit- Pension Audit Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
65 15162 Ext Audit- Financial Audit Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
66 15165 External Audit - Operations Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
67 15166 Ext Audit -Pricing Module Certification Alloc-Fixed 100.00% 0.00% 100.00% 0.00% Per ISO-NE Staff
68 15170 External Audit - Settlements Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
69 15171 Ext Audit-Mgmnt Assertion Audit Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
70 15175 Ext Audit - Info Technology Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
71 15176 Ext Audit - ISO Internet Vulnerability Assessment Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
72 15177 Ext Audit - Satellite / SCADA Internet Vulnerability Assessment Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
73 15180 External Audit - Participants Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
74 15181 Ext Audit - RNS Audit Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
75 15185 External Audit - Other Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
76 15186 Ext Audit - SSAE 16 Direct Support Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
77 15190 Int Audit Special Projects Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
78 15191 IA Special Projects - Audit Universe - Auto Audit Implementation Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
79 15192 IA Special Projects - Data Mining - Audit Command Language Impl Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
80 25702 External Audit - SSAE 16 Alloc-Fixed 100.00% 0.00% 100.00% 0.00% Per ISO-NE Staff
81 28304 Stimulus Fund Project Compliance, Rpting & Auditing Req Pre-Imp Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
82 28581 External Firm Stimulus Funds - Project Mock Audit Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
Exhibit 3 (RCL-3)
Schedule 5.0
Page 3 of 11
Line Allocation
(a) (b) (c) (d) (e) (f) (g) (h)
TEST YEAR 2014
2 8301 GC - Federal Regulatory Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
3 12420 NCPC Changes Alloc-Fixed 100.00% 0.00% 25.00% 75.00% Per ISO-NE Staff
4 12421 Demand Integration Alloc-Fixed 100.00% 0.00% 100.00% 0.00% Per ISO-NE Staff
5 12423 GC - Financial Assurance Policy (FAP) Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
6 12425 GC - Price Response Demand Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
7 12502 Board of Directors Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
8 12504 ISO Tariff Litigation Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
9 12505 Administration of OATT Alloc-Fixed 100.00% 100.00% 0.00% 0.00% Per ISO-NE Staff
10 12508 Energy Markets/Compliants/Rule Changes Alloc-Fixed 100.00% 0.00% 100.00% 0.00% Per ISO-NE Staff
11 12509 Market Monitoring and Sanctions Alloc-Fixed 100.00% 0.00% 50.00% 50.00% Per ISO-NE Staff
12 12512 GC - BSIA - General Corporate Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
13 12513 Miscellaneous Labor Matters Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
14 12514 NEPOOL Participants Committee Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
15 12517 Administrative and Clerical Support Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
16 12520 Market Monitoring Rules/Regulations Alloc-Fixed 100.00% 0.00% 40.00% 60.00% Per ISO-NE Staff
17 12521 Billing Disputes Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
18 12523 NEPOOL Information Policy Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
19 12542 Transmission Upgrades CT Alloc-Fixed 100.00% 0.00% 70.00% 30.00% Per ISO-NE Staff
20 12543 Independent Market Advisor Alloc-Fixed 100.00% 0.00% 70.00% 30.00% Per ISO-NE Staff
21 12544 FERC Proceedings Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
22 12547 GC - Creation of New England RTO Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
23 12552 GC - S&G - General Corporate Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
24 12555 GC - Transmission Upgrades - VT Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
25 12556 GC - Patents Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
26 12559 General Corporate Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
27 12561 GC - Schiff Hardin Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
28 12562 Transmission Upgrades VT Alloc-Fixed 100.00% 0.00% 70.00% 30.00% Per ISO-NE Staff
29 12563 Regulatory Matters Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
30 12565 GC - Conn Regulatory Matters - WBAM Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
31 12568 RMR Agreements Alloc-Fixed 100.00% 0.00% 70.00% 30.00% Per ISO-NE Staff
32 12569 NOPR / Rulemaking Comments Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
33 12570 Operations Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
34 12571 ISO Reporting Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
35 12572 GC - BSAI - 205 General Proceedings Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
36 12573 206 General Proceedings Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
37 12574 Market Rule 1 Proceedings Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
38 12575 Transmission Cost Allocation Alloc-Fixed 100.00% 0.00% 70.00% 30.00% Per ISO-NE Staff
39 12579 GC - SH - Market Rule 1 Proceedings Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
40 12583 GC - SH - LICAP Appeal Alloc-Fixed 100.00% 0.00% 0.00% 100.00% Per ISO-NE Staff
41 12584 Installed Capacity Requirements Alloc-Fixed 100.00% 0.00% 0.00% 100.00% Per ISO-NE Staff
42 12587 Capacity Market Development Alloc-Fixed 100.00% 0.00% 0.00% 100.00% Per ISO-NE Staff
43 12588 Web Content Management Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
44 12589 Rhode Island Siting Alloc-Fixed 100.00% 0.00% 70.00% 30.00% Per ISO-NE Staff
45 12594 Maine Transmission Siting Alloc-Fixed 100.00% 0.00% 70.00% 30.00% Per ISO-NE Staff
46 12595 NEEWS Transmission Siting Alloc-Fixed 100.00% 0.00% 70.00% 30.00% Per ISO-NE Staff
47 12663 Public Information Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
48 12669 Government Affairs Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
49 12673 Market Conference Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
50 12674 Energy Efficiency Activities Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
51 12592 GC - State Proceedings Alloc-Fixed 100.00% 0.00% 50.00% 50.00% Per ISO-NE Staff
52 12598 GC - ERO Alloc-Fixed 100.00% 40.00% 40.00% 20.00% Per ISO-NE Staff
53 12602 Exemption for Commodity Futures Trading Commission Alloc-Fixed 100.00% 0.00% 50.00% 50.00% Per ISO-NE Staff
54
55 701 COO-Adm
56 19001 COO - NEPOOL Committee Support Total OPS Labor 100.00% 26.80% 47.95% 25.25% Per ISO-NE Staff
57 19002 COO - Regional Committee Support Total OPS Labor 100.00% 26.80% 47.95% 25.25% Per ISO-NE Staff
58 19003 COO - National Committee Support Total OPS Labor 100.00% 26.80% 47.95% 25.25% Per ISO-NE Staff
59 19004 Employee Development Total OPS Labor 100.00% 26.80% 47.95% 25.25% Per ISO-NE Staff
60 19005 COO - Indirect Supervision/Clerical Support Total OPS Labor 100.00% 26.80% 47.95% 25.25% Per ISO-NE Staff
61 19006 COO - Northeast Disturbance Total OPS Labor 100.00% 26.80% 47.95% 25.25% Per ISO-NE Staff
62 19007 COO - Operational Excellence Total OPS Labor 100.00% 26.80% 47.95% 25.25% Per ISO-NE Staff
63 19009 COO - Renewable Resource Integration Alloc-Fixed 100.00% 0.00% 0.00% 100.00% Per ISO-NE Staff
64 19010 COO - Quality Improvement Total OPS Labor 100.00% 26.80% 47.95% 25.25% Per ISO-NE Staff
65 19011 COO - Advanced Grid Simulator Alloc-Fixed 100.00% 0.00% 50.00% 50.00% Per ISO-NE Staff
66 19012 Changes to the Forward Capacity Market Alloc-Fixed 100.00% 0.00% 0.00% 100.00% Per ISO-NE Staff
67 19013 Changes Relevant to Fuel Security Alloc-Fixed 100.00% 0.00% 80.00% 20.00% Per ISO-NE Staff
68
70 14404 System Ops Mgt & Adm - NEPOOL Committee Support SOA Labor 100.00% 34.54% 46.42% 19.04% Per ISO-NE Staff
71 14405 System Ops Mgt & Adm - Indirect Supervision/Clerical Support SOA Labor 100.00% 34.54% 46.42% 19.04% Per ISO-NE Staff
72 14407 System Ops Mgt & Adm - Regional Committee Support SOA Labor 100.00% 34.54% 46.42% 19.04% Per ISO-NE Staff
73 14408 System Ops Mgt & Adm - National Committee Support SOA Labor 100.00% 34.54% 46.42% 19.04% Per ISO-NE Staff
74 14409 System Ops Mgt & Adm - Employee Development SOA Labor 100.00% 34.54% 46.42% 19.04% Per ISO-NE Staff
Exhibit 3 (RCL-3)
Schedule 5.0
Page 4 of 11
Line Allocation
(a) (b) (c) (d) (e) (f) (g) (h)
TEST YEAR 2014
1 101 Operations
2 14001 Ops - Generation Dispatch Alloc-Fixed 100.00% 0.00% 84.00% 16.00% Per ISO-NE Staff
3 14002 Ops - Transmission Operations Alloc-Fixed 100.00% 80.00% 5.00% 15.00% Per ISO-NE Staff
4 14304 Ops - Advanced Scheduling and Forecasting Alloc-Fixed 100.00% 5.00% 79.00% 16.00% Per ISO-NE Staff
5 14402 Ops - Operations Training Alloc-Fixed 100.00% 40.00% 40.00% 20.00% Per ISO-NE Staff
6 14413 Ops - Operations Support Training & Development Alloc-Fixed 100.00% 40.00% 40.00% 20.00% Per ISO-NE Staff
7 14457 Transmission Pilot Program Alloc-Fixed 100.00% 100.00% 0.00% 0.00% Per ISO-NE Staff
8 14561 Ops - NEPOOL Committee Support OPS Labor 100.00% 27.96% 55.36% 16.68% Per ISO-NE Staff
9 14562 Ops - Regional Committee Support OPS Labor 100.00% 27.96% 55.36% 16.68% Per ISO-NE Staff
10 14563 Ops - National Committee Support OPS Labor 100.00% 27.96% 55.36% 16.68% Per ISO-NE Staff
11 14564 Ops - Indirect Supervision/Clerical Support OPS Labor 100.00% 27.96% 55.36% 16.68% Per ISO-NE Staff
12 14565 Ops - Employee Development OPS Labor 100.00% 27.96% 55.36% 16.68% Per ISO-NE Staff
13 14570 Ops - Market Analysis Alloc-Fixed 100.00% 0.00% 100.00% 0.00% Per ISO-NE Staff
14 14702 TPC - Procedure Documentation Alloc-Fixed 100.00% 40.00% 40.00% 20.00% Per ISO-NE Staff
15 15501 OA - Operations Analysis Alloc-Fixed 100.00% 15.00% 70.00% 15.00% Per ISO-NE Staff
16
18 14701 TPC - Compliance Monitoring Alloc-Fixed 100.00% 40.00% 40.00% 20.00% Per ISO-NE Staff
19 14703 TPC - NEPOOL Committee Support OS Labor 100.00% 55.55% 19.33% 25.12% Per ISO-NE Staff
20 14704 TPC - Regional Committee Support OS Labor 100.00% 55.55% 19.33% 25.12% Per ISO-NE Staff
21 14705 TPC - National Committee Support OS Labor 100.00% 55.55% 19.33% 25.12% Per ISO-NE Staff
22 14706 TPC - Indirect Supervision/Clerical Support OS Labor 100.00% 55.55% 19.33% 25.12% Per ISO-NE Staff
23 14707 TPC - Employee Development OS Labor 100.00% 55.55% 19.33% 25.12% Per ISO-NE Staff
24 14710 ISO TMS Tariff-Section 1 - (Genernal Terms and Conditions) Alloc-Fixed 100.00% 33.30% 33.30% 33.40% Per ISO-NE Staff
25 14711 ISO TMS Tariff-Section 2 - (OATT) and Agreements Support Alloc-Fixed 100.00% 33.30% 33.30% 33.40% Per ISO-NE Staff
26 14715 EIPC - Non DOE Funded/Unallowable Alloc-Fixed 100.00% 0.00% 0.00% 100.00% Per ISO-NE Staff
27 14716 EIPC - Initiate Project Alloc-Fixed 100.00% 0.00% 0.00% 100.00% Per ISO-NE Staff
28 14720 EIPC - Macroeconomic Analysis Alloc-Fixed 100.00% 0.00% 0.00% 100.00% Per ISO-NE Staff
29 14721 EIPC - Expansion Scenario Consensus Alloc-Fixed 100.00% 0.00% 0.00% 100.00% Per ISO-NE Staff
30 14722 EIPC - Interim Report Reference Case and Expansion Scen Alloc-Fixed 100.00% 0.00% 0.00% 100.00% Per ISO-NE Staff
31 14723 EIPC - Interregional Transmission Operations Alloc-Fixed 100.00% 0.00% 0.00% 100.00% Per ISO-NE Staff
32 14724 EIPC - Reliability Review Alloc-Fixed 100.00% 0.00% 0.00% 100.00% Per ISO-NE Staff
33 14725 EIPC - Prod. Cost Analysis of Interregional Trans. Options Alloc-Fixed 100.00% 0.00% 0.00% 100.00% Per ISO-NE Staff
34 14726 EIPC - Generation and Transmission Cost Estimates Alloc-Fixed 100.00% 0.00% 0.00% 100.00% Per ISO-NE Staff
35 14727 EIPC - Review of Results Alloc-Fixed 100.00% 0.00% 0.00% 100.00% Per ISO-NE Staff
36 14728 EIPC - Final Report Alloc-Fixed 100.00% 0.00% 0.00% 100.00% Per ISO-NE Staff
37
39 9701 TSO - Database/Software Development Alloc-Fixed 100.00% 30.00% 60.00% 10.00% Per ISO-NE Staff
40 9707 TSO - TTC Forecast Alloc-Fixed 100.00% 100.00% 0.00% 0.00% Per ISO-NE Staff
41 14102 TSO - OATT/RTG Services Alloc-Fixed 100.00% 100.00% 0.00% 0.00% Per ISO-NE Staff
42 14301 TSO - Contract Administration and Scheduling Alloc-Fixed 100.00% 10.00% 70.00% 20.00% Per ISO-NE Staff
43 14303 TSO - Generation Dispatch/Resource Auditing Support Alloc-Fixed 100.00% 0.00% 100.00% 0.00% Per ISO-NE Staff
44 14451 TSO - NEPOOL Committee Support TSO Labor 100.00% 32.37% 47.81% 19.82% Per ISO-NE Staff
45 14452 TSO - Regional Committee Support TSO Labor 100.00% 32.37% 47.81% 19.82% Per ISO-NE Staff
46 14453 TSO - National Committee Support TSO Labor 100.00% 32.37% 47.81% 19.82% Per ISO-NE Staff
47 14454 TSO - Indirect Supervision/Clerical Support TSO Labor 100.00% 32.37% 47.81% 19.82% Per ISO-NE Staff
48 14456 TSO - HVDC Transmission Business Services TSO Labor 100.00% 32.37% 47.81% 19.82% Per ISO-NE Staff
49 14455 TSO - Employee Development TSO Labor 100.00% 32.37% 47.81% 19.82% Per ISO-NE Staff
50 14458 TSO - Reactive Capability Payment Program Alloc-Fixed 100.00% 0.00% 100.00% 0.00% Per ISO-NE Staff
51 14459 TSO - NRTG Transmission Service TSO Labor 100.00% 32.37% 47.81% 19.82% Per ISO-NE Staff
52 14460 TSO - NERC IDC/SDX Data TSO Labor 100.00% 32.37% 47.81% 19.82% Per ISO-NE Staff
53 14461 TSO - Annual Operations Reliability Report Alloc-Fixed 100.00% 0.00% 0.00% 100.00% Per ISO-NE Staff
54 14462 OSS - General Systems Operations Support TSO Labor 100.00% 32.37% 47.81% 19.82% Per ISO-NE Staff
55 14463 OSS - Transmission Outage Report Development Alloc-Fixed 100.00% 50.00% 25.00% 25.00% Per ISO-NE Staff
56 14464 OSS - Econ Anal Equip Out (TOA) Alloc-Fixed 100.00% 100.00% 0.00% 0.00% Per ISO-NE Staff
57 14466 OSS - Monthly Forward Capacity Market (FCM) Alloc-Fixed 100.00% 0.00% 0.00% 100.00% Per ISO-NE Staff
58 14469 OSS C10/C30 Audits Alloc-Fixed 100.00% 0.00% 80.00% 20.00% Per ISO-NE Staff
59 14470 OSS Resource Performance Monitoring Alloc-Fixed 100.00% 0.00% 80.00% 20.00% Per ISO-NE Staff
60 14471 OSS New Generation Coordination & Registration Alloc-Fixed 100.00% 0.00% 70.00% 30.00% Per ISO-NE Staff
61 18361 OSS - Transmission Studies, Operations, OASIS Support Alloc-Fixed 100.00% 80.00% 5.00% 15.00% Per ISO-NE Staff
62 18381 OSS - Transmission Outage Appl - Short Term Alloc-Fixed 100.00% 80.00% 5.00% 15.00% Per ISO-NE Staff
63 18382 OSS - Trans Out Ap Lg Term Alloc-Fixed 100.00% 0.00% 0.00% 100.00% Per ISO-NE Staff
64
65 315 System Operations Support
66 14750 SOS - NEPOOL Committee Support Alloc-Fixed 100.00% 32.37% 47.81% 19.82% Per ISO-NE Staff
67 14751 SOS - Regional Committee Support Alloc-Fixed 100.00% 32.37% 47.81% 19.82% Per ISO-NE Staff
68 14752 SOS - National Committee Support Alloc-Fixed 100.00% 32.37% 47.81% 19.82% Per ISO-NE Staff
69 14753 SOS - Indirect Supervision/Clerical Support Alloc-Fixed 100.00% 32.37% 47.81% 19.82% Per ISO-NE Staff
70 14754 SOS - Employee Development Alloc-Fixed 100.00% 32.37% 47.81% 19.82% Per ISO-NE Staff
71 14755 Winter 2013/14 Reliability Project Alloc-Fixed 100.00% 0.00% 20.00% 80.00% Per ISO-NE Staff
Exhibit 3 (RCL-3)
Schedule 5.0
Page 5 of 11
Line Allocation
(a) (b) (c) (d) (e) (f) (g) (h)
TEST YEAR 2014
2 19101 MO - NEPOOL Committee Support MOA Labor 100.00% 0.00% 70.00% 30.00% Per ISO-NE Staff
3 19102 MO - Regional Committee Support MOA Labor 100.00% 0.00% 70.00% 30.00% Per ISO-NE Staff
4 19103 MO - National Committee Support MOA Labor 100.00% 0.00% 70.00% 30.00% Per ISO-NE Staff
5 19104 MO - Indirect Supervision/Clerical Support MOA Labor 100.00% 0.00% 70.00% 30.00% Per ISO-NE Staff
6 19105 Employee Development MOA Labor 100.00% 0.00% 70.00% 30.00% Per ISO-NE Staff
7 19112 Settlements - Customer Service MOA Labor 100.00% 0.00% 70.00% 30.00% Per ISO-NE Staff
8 19118 Cost of Poor Quality - COPQ Alloc-Fixed 100.00% 33.33% 33.33% 33.34% Per ISO-NE Staff
9 19120 CEII Requests Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
10 19121 Membership/Participant Support Alloc-Fixed 100.00% 0.00% 50.00% 50.00% Per ISO-NE Staff
11 19122 DR/BLTS Issues Management Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
12
14 16101 Market Power Monitoring and Mitigation Alloc-Fixed 100.00% 0.00% 70.00% 30.00% Per ISO-NE Staff
15 16102 Regulatory Activities Alloc-Fixed 100.00% 0.00% 70.00% 30.00% Per ISO-NE Staff
16 16103 Administration Supervision and Clerical Support Alloc-Fixed 100.00% 0.00% 70.00% 30.00% Per ISO-NE Staff
17 16111 Employee Development MMM Labor 100.00% 0.00% 70.00% 30.00% Per ISO-NE Staff
18 16113 New Software Coding and Testing MMM Labor 100.00% 0.00% 70.00% 30.00% Per ISO-NE Staff
19 16114 Maintenance / Troubleshooting Software MMM Labor 100.00% 0.00% 70.00% 30.00% Per ISO-NE Staff
20 16115 Analysis & Internal Reports MMM Labor 100.00% 0.00% 70.00% 30.00% Per ISO-NE Staff
21 16117 Manuals & Procedures MMM Labor 100.00% 0.00% 70.00% 30.00% Per ISO-NE Staff
22 16121 FCM Market Monitoring Alloc-Fixed 100.00% 0.00% 0.00% 100.00% Per ISO-NE Staff
23
25 21901 Day Ahead Market Administration Alloc-Fixed 100.00% 0.00% 100.00% 0.00% Per ISO-NE Staff
26 21902 Real Time Price Verification Alloc-Fixed 100.00% 0.00% 100.00% 0.00% Per ISO-NE Staff
27 21903 FTR/ARR Administration Alloc-Fixed 100.00% 50.00% 50.00% 0.00% Per ISO-NE Staff
28 21904 MA - NEPOOL Committee Support MA Labor 100.00% 0.00% 96.84% 3.16% Per ISO-NE Staff
29 21905 MA - Regional Committee Support MA Labor 100.00% 0.00% 96.84% 3.16% Per ISO-NE Staff
30 21906 MA - National Committee Support MA Labor 100.00% 0.00% 96.84% 3.16% Per ISO-NE Staff
31 21907 MA - Indirect Supervision/Clerical Support MA Labor 100.00% 0.00% 96.84% 3.16% Per ISO-NE Staff
32 21908 Employee Development MA Labor 100.00% 0.00% 96.84% 3.16% Per ISO-NE Staff
33 21909 Customer Support MA Labor 100.00% 0.00% 96.84% 3.16% Per ISO-NE Staff
34 21913 MA-Data Collection/Report Writing Alloc-Fixed 100.00% 0.00% 100.00% 0.00% Per ISO-NE Staff
35 21914 QUA Administration Alloc-Fixed 100.00% 50.00% 50.00% 0.00% Per ISO-NE Staff
36 21915 FTR/Auction Administration Alloc-Fixed 100.00% 0.00% 100.00% 0.00% Per ISO-NE Staff
37 21916 Forward Reserve Market - Administration Alloc-Fixed 100.00% 0.00% 0.00% 100.00% Per ISO-NE Staff
38 21917 Real Time Price Finalization Alloc-Fixed 100.00% 0.00% 100.00% 0.00% Per ISO-NE Staff
39 21918 Resource Performance Monitoring Alloc-Fixed 100.00% 20.00% 30.00% 50.00% Per ISO-NE Staff
40 21951 FCM Annual Reconfiguration Auction Administration Alloc-Fixed 100.00% 0.00% 0.00% 100.00% Per ISO-NE Staff
41 21952 FCM Annual CSO Bilaterals Administration Alloc-Fixed 100.00% 0.00% 0.00% 100.00% Per ISO-NE Staff
42 21953 FCM Monthly Administration Alloc-Fixed 100.00% 0.00% 0.00% 100.00% Per ISO-NE Staff
43 21954 Market Schedule Coordination Alloc-Fixed 100.00% 0.00% 30.00% 70.00% Per ISO-NE Staff
44 21955 Incremental Auction Revenue Rights Alloc-Fixed 100.00% 50.00% 50.00% 0.00% Per ISO-NE Staff
45 21956 Changes in Supply Offers (Hourly Reoffers) Alloc-Fixed 100.00% 0.00% 100.00% 0.00% Per ISO-NE Staff
46
48 1701 Billing Statements - Energy Alloc-Fixed 100.00% 0.00% 100.00% 0.00% Per ISO-NE Staff
49 1702 Billing Statements - Transmission Alloc-Fixed 100.00% 100.00% 0.00% 0.00% Per ISO-NE Staff
50 1713 Billing Statements - ISO Tariff Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
51 1714 Billable Tariff Re-billings Alloc-Fixed 100.00% 100.00% 0.00% 0.00% Per ISO-NE Staff
52 2005 Settlements - Customer Service STLM Labor 100.00% 14.79% 48.71% 36.50% Per ISO-NE Staff
53 2007 Settlements - Admin support - NEPOOL Committees STLM Labor 100.00% 14.79% 48.71% 36.50% Per ISO-NE Staff
54 2008 Settlements - Admin support (ISO) STLM Labor 100.00% 14.79% 48.71% 36.50% Per ISO-NE Staff
55 2009 Settlements - Indirect Supervision/Clerical Support STLM Labor 100.00% 14.79% 48.71% 36.50% Per ISO-NE Staff
56 2010 Settlements - Employee Development STLM Labor 100.00% 14.79% 48.71% 36.50% Per ISO-NE Staff
57 2013 Settlements - FTR Administration Alloc-Fixed 100.00% 0.00% 100.00% 0.00% Per ISO-NE Staff
58 2014 Billing Statements - NCPC Alloc-Fixed 100.00% 0.00% 50.00% 50.00% Per ISO-NE Staff
59 2020 Settlements-Billing Disputes Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
60 2021 Settlements-Analysis & Reporting Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
61 2022 Settlements-Demand Response Alloc-Fixed 100.00% 0.00% 0.00% 100.00% Per ISO-NE Staff
62 2024 Settlements - ASM Regulation Alloc-Fixed 100.00% 0.00% 0.00% 100.00% Per ISO-NE Staff
63 2025 Settlements - ASM Locational Forward Reserve Alloc-Fixed 100.00% 0.00% 0.00% 100.00% Per ISO-NE Staff
64 2026 Settlements-Batch Processing Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
65 2030 Settlements - ARR Administration Alloc-Fixed 100.00% 0.00% 90.00% 10.00% Per ISO-NE Staff
66 2032 Settlements - Billing STLM Labor 100.00% 14.79% 48.71% 36.50% Per ISO-NE Staff
67 2033 Settlements - Market Analysis Alloc-Fixed 100.00% 0.00% 100.00% 0.00% Per ISO-NE Staff
68 2034 Settlements - COPQ Alloc-Fixed 100.00% 15.00% 40.00% 45.00% Per ISO-NE Staff
69 2036 MAS - Market Analysis - Projects Alloc-Fixed 100.00% 0.00% 100.00% 0.00% Per ISO-NE Staff
70 2037 MAS - Bill Job Aid Alloc-Fixed 100.00% 15.00% 60.00% 25.00% Per ISO-NE Staff
71 2039 MAS - BITT and Business Tools Alloc-Fixed 100.00% 15.00% 60.00% 25.00% Per ISO-NE Staff
72 2043 MAS - Release Checkout and Support Alloc-Fixed 100.00% 15.00% 60.00% 25.00% Per ISO-NE Staff
73 2044 MAS - EQR Reporting Alloc-Fixed 100.00% 15.00% 60.00% 25.00% Per ISO-NE Staff
74 2047 MAS - Score Card Alloc-Fixed 100.00% 14.79% 48.71% 36.50% Per ISO-NE Staff
75 2048 MAS - FCM Alloc-Fixed 100.00% 0.00% 0.00% 100.00% Per ISO-NE Staff
76 2049 MAS - Product Testing Alloc-Fixed 100.00% 0.00% 80.00% 20.00% Per ISO-NE Staff
77 2050 MAS - Business Acceptance Testing Alloc-Fixed 100.00% 0.00% 80.00% 20.00% Per ISO-NE Staff
78 2051 MAS - Legal Support Alloc-Fixed 100.00% 0.00% 50.00% 50.00% Per ISO-NE Staff
79 2052 MAS - FERC Data Request Alloc-Fixed 100.00% 0.00% 50.00% 50.00% Per ISO-NE Staff
80 2053 MAS - Tariff Change Coordination (TCC) Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
81 2054 MAS - Markets Development Support Alloc-Fixed 100.00% 0.00% 50.00% 50.00% Per ISO-NE Staff
Exhibit 3 (RCL-3)
Schedule 5.0
Page 6 of 11
Line Allocation
(a) (b) (c) (d) (e) (f) (g) (h)
TEST YEAR 2014
2 3000 MOSS - Hourly Settlements Support Alloc-Fixed 100.00% 0.00% 50.00% 50.00% Per ISO-NE Staff
3 3002 MOSS - Monthly Settlements Support Alloc-Fixed 100.00% 50.00% 0.00% 50.00% Per ISO-NE Staff
4 3003 MOSS - Market Analysis Support Alloc-Fixed 100.00% 0.00% 100.00% 0.00% Per ISO-NE Staff
5 3004 MOSS - Generation & Load Admin Support Alloc-Fixed 100.00% 0.00% 100.00% 0.00% Per ISO-NE Staff
6 3005 MOSS - Demand Resource Admin Support Alloc-Fixed 100.00% 0.00% 100.00% 0.00% Per ISO-NE Staff
7 3006 MOSS - Customer Service Alloc-Fixed 100.00% 0.00% 100.00% 0.00% Per ISO-NE Staff
8 3007 MOSS - NEPOOL Committees Support Alloc-Fixed 100.00% 0.00% 50.00% 50.00% Per ISO-NE Staff
9 3008 MOSS - Admin Support Alloc-Fixed 100.00% 0.00% 100.00% 0.00% Per ISO-NE Staff
10 3009 MOSS - Indirect Supervision (Principal Analysts only) Alloc-Fixed 100.00% 0.00% 100.00% 0.00% Per ISO-NE Staff
11 3010 MOSS - Employee Development Alloc-Fixed 100.00% 0.00% 100.00% 0.00% Per ISO-NE Staff
12 3011 MOSS - Release Checkout and Support Alloc-Fixed 100.00% 0.00% 100.00% 0.00% Per ISO-NE Staff
13 3012 MOSS - FERC Data Request Alloc-Fixed 100.00% 0.00% 100.00% 0.00% Per ISO-NE Staff
14 3013 MOSS - Tariff Change Coordination (TCC) Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
15 3014 MOSS - Markets Development Support Alloc-Fixed 100.00% 0.00% 50.00% 50.00% Per ISO-NE Staff
16
18 16001 Participant/membership support Alloc-Fixed 100.00% 0.00% 50.00% 50.00% Per ISO-NE Staff
19 16006 Call Support (HEAT) Alloc-Fixed 100.00% 26.00% 66.00% 8.00% Per ISO-NE Staff
20 16401 MSS NEPOOL Reliability Committee MS Labor 100.00% 0.00% 90.00% 10.00% Per ISO-NE Staff
21 16403 MSS NEPOOL Market Committee MS Labor 100.00% 0.00% 90.00% 10.00% Per ISO-NE Staff
22 16404 MSS NEPOOL Committee Support MS Labor 100.00% 0.00% 90.00% 10.00% Per ISO-NE Staff
23 16407 MSS Employee Development MS Labor 100.00% 0.00% 90.00% 10.00% Per ISO-NE Staff
24 16408 Miscellaneous and Administrative Activities MS Labor 100.00% 0.00% 90.00% 10.00% Per ISO-NE Staff
25 16413 MSS - Market Rules MS Labor 100.00% 0.00% 90.00% 10.00% Per ISO-NE Staff
26 16414 MSS Direct Customer Contact MS Labor 100.00% 0.00% 90.00% 10.00% Per ISO-NE Staff
27 16419 Asset Registration Implemented Alloc-Fixed 100.00% 0.00% 100.00% 0.00% Per ISO-NE Staff
28 16420 Asset Registration Reivew Alloc-Fixed 100.00% 0.00% 100.00% 0.00% Per ISO-NE Staff
29 16421 C10/C30 Audits Alloc-Fixed 100.00% 0.00% 84.00% 16.00% Per ISO-NE Staff
30 16422 Claimed Capability Audits Alloc-Fixed 100.00% 0.00% 100.00% 0.00% Per ISO-NE Staff
31 16423 COPQ/Rework - Cost of Poor Quality Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
32 16424 Demand Resource Audits Alloc-Fixed 100.00% 0.00% 100.00% 0.00% Per ISO-NE Staff
33 16425 DR Registration Implemented Alloc-Fixed 100.00% 0.00% 100.00% 0.00% Per ISO-NE Staff
34 16426 DR Registration Review Alloc-Fixed 100.00% 0.00% 100.00% 0.00% Per ISO-NE Staff
35 16427 MSS Analysis and Reporting Alloc-Fixed 100.00% 0.00% 90.00% 10.00% Per ISO-NE Staff
36 16428 MSS Business Analysis - Issues Management Alloc-Fixed 100.00% 0.00% 90.00% 10.00% Per ISO-NE Staff
37 16429 MSS Business Analysis - Process Improvement Alloc-Fixed 100.00% 0.00% 90.00% 10.00% Per ISO-NE Staff
38 16430 MSS Business Analysis - Committee Monitoring Alloc-Fixed 100.00% 0.00% 90.00% 10.00% Per ISO-NE Staff
39 16431 Network Model Releases and PNODE Activation/Deactivation Alloc-Fixed 100.00% 70.00% 30.00% 0.00% Per ISO-NE Staff
40 16432 New Generation Coordination and Registration Alloc-Fixed 100.00% 0.00% 100.00% 0.00% Per ISO-NE Staff
41 16433 Passive Resource Performance and M&V Review Alloc-Fixed 100.00% 0.00% 100.00% 0.00% Per ISO-NE Staff
42 16434 QMS/CAPA Process and Procedure Updates Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
43 16435 Resource Performance Monitoring Alloc-Fixed 100.00% 0.00% 100.00% 0.00% Per ISO-NE Staff
44
46 19113 RMR Contract Administration Alloc-Fixed 100.00% 0.00% 0.00% 100.00% Per ISO-NE Staff
47 16021 Training Development Alloc-Fixed 100.00% 0.00% 50.00% 50.00% Per ISO-NE Staff
48 16024 Training Delivery Alloc-Fixed 100.00% 0.00% 50.00% 50.00% Per ISO-NE Staff
49 21504 Employee Development Alloc-Fixed 100.00% 0.00% 50.00% 50.00% Per ISO-NE Staff
50
52 18148 SP - NEPOOL Committee Support Alloc-Fixed 100.00% 0.00% 100.00% 0.00% Per ISO-NE Staff
53 18149 SP - National Committee Support Alloc-Fixed 100.00% 0.00% 100.00% 0.00% Per ISO-NE Staff
54 18150 SP - Regional Transmission Expansion Plan Alloc-Fixed 100.00% 75.00% 25.00% 0.00% Per ISO-NE Staff
55 18152 States Requests Alloc-Fixed 100.00% 50.00% 25.00% 25.00% Per ISO-NE Staff
56 18401 SP - Regional Activities Alloc-Fixed 100.00% 100.00% 0.00% 0.00% Per ISO-NE Staff
57 18402 SP - Transmission Planning/Economic Studies Initiative Alloc-Fixed 100.00% 0.00% 50.00% 50.00% Per ISO-NE Staff
58 18461 SP - NERC Activities Alloc-Fixed 100.00% 100.00% 0.00% 0.00% Per ISO-NE Staff
59 18501 SP - Regulatory Activities Alloc-Fixed 100.00% 100.00% 0.00% 0.00% Per ISO-NE Staff
60 18521 SP - Employee Development SP Labor 100.00% 24.83% 17.73% 57.44% Per ISO-NE Staff
61 18531 SP - Indirect Supervision/Clerical Support SP Labor 100.00% 24.83% 17.73% 57.44% Per ISO-NE Staff
62 18532 SP - New England Governors' Study Request Alloc-Fixed 100.00% 100.00% 0.00% 0.00% Per ISO-NE Staff
63 18561 SP - NEPOOL Administrative Support - Schedule 3 Tariff Alloc-Fixed 100.00% 0.00% 0.00% 100.00% Per ISO-NE Staff
64 18562 SP - Project Management Alloc-Fixed 100.00% 100.00% 0.00% 0.00% Per ISO-NE Staff
Exhibit 3 (RCL-3)
Schedule 5.0
Page 7 of 11
Line Allocation
(a) (b) (c) (d) (e) (f) (g) (h)
TEST YEAR 2014
2 18101 LF - Develop Load Forecast Alloc-Fixed 100.00% 20.00% 20.00% 60.00% Per ISO-NE Staff
3 18121 SP - Operations Forecast Support Alloc-Fixed 100.00% 20.00% 20.00% 60.00% Per ISO-NE Staff
4 18131 LF - Other Load Forecasting Activities Alloc-Fixed 100.00% 20.00% 20.00% 60.00% Per ISO-NE Staff
5 18132 LF - NEPOOL Administrative Support SP Labor 100.00% 24.83% 17.73% 57.44% Per ISO-NE Staff
6 14307 PSR - NEPOOL Documents Revision Support Alloc-Fixed 100.00% 33.00% 33.00% 34.00% Per ISO-NE Staff
7 14309 PSR - Markets Management and Implementation Alloc-Fixed 100.00% 0.00% 100.00% 0.00% Per ISO-NE Staff
8 14313 PSR - National Committee Support PSR Labor 100.00% 10.87% 5.05% 84.09% Per ISO-NE Staff
9 14315 PSR - Employee Development PSR Labor 100.00% 10.87% 5.05% 84.09% Per ISO-NE Staff
10 17101 PSR Analysis Alloc-Fixed 100.00% 0.00% 70.00% 30.00% Per ISO-NE Staff
11 17131 PSR - Calculate Objective Capability Alloc-Fixed 100.00% 0.00% 0.00% 100.00% Per ISO-NE Staff
12 17201 PSR Regulatory Liaison Alloc-Fixed 100.00% 0.00% 30.00% 70.00% Per ISO-NE Staff
13 17231 PSR Regulatory Filings Alloc-Fixed 100.00% 0.00% 0.00% 100.00% Per ISO-NE Staff
14 17241 PSR-Transmission Plan Admin Support Alloc-Fixed 100.00% 50.00% 50.00% 0.00% Per ISO-NE Staff
15 17251 PSR-Regional Bulk Power System Assessment Alloc-Fixed 100.00% 50.00% 50.00% 0.00% Per ISO-NE Staff
16 17301 PSR 18.4 Applications Alloc-Fixed 100.00% 0.00% 0.00% 100.00% Per ISO-NE Staff
17 17331 PSR NEPOOL Committee Support PSR Labor 100.00% 10.87% 5.05% 84.09% Per ISO-NE Staff
18 17361 PSR Regional Committee Support PSR Labor 100.00% 10.87% 5.05% 84.09% Per ISO-NE Staff
19 17401 PSR Indirect Supervisory Activities PSR Labor 100.00% 10.87% 5.05% 84.09% Per ISO-NE Staff
20 17402 PSR - Project Management Alloc-Fixed 100.00% 100.00% 0.00% 0.00% Per ISO-NE Staff
21 17403 TCA Application Review Alloc-Fixed 100.00% 0.00% 0.00% 100.00% Per ISO-NE Staff
22 17404 Non-Transmission Alternative Analyses Alloc-Fixed 100.00% 0.00% 50.00% 50.00% Per ISO-NE Staff
23 17405 Energy Efficiency Forecast Alloc-Fixed 100.00% 0.00% 0.00% 100.00% Per ISO-NE Staff
24 17406 SP - North American Energy Standards Board (NAESB) Alloc-Fixed 100.00% 0.00% 50.00% 50.00% Per ISO-NE Staff
25 17407 SP - National Standards Work Alloc-Fixed 100.00% 0.00% 50.00% 50.00% Per ISO-NE Staff
26 17408 MA-EEAC Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
27 17501 FCA - Evaluate Existing Resource De-list Bids Alloc-Fixed 100.00% 0.00% 0.00% 100.00% Per ISO-NE Staff
28 17502 FCA - Preliminary Review of Show of Interest Applications Alloc-Fixed 100.00% 0.00% 0.00% 100.00% Per ISO-NE Staff
29 17503 FCA - New Resource Qualification Support Alloc-Fixed 100.00% 0.00% 0.00% 100.00% Per ISO-NE Staff
30 17504 FCA - Perform Transmission / Topology Assessments Alloc-Fixed 100.00% 0.00% 0.00% 100.00% Per ISO-NE Staff
31 17505 FCA - Perform Existing Resource Qualification Alloc-Fixed 100.00% 0.00% 0.00% 100.00% Per ISO-NE Staff
32 17506 FCA - Composite Offer Review Alloc-Fixed 100.00% 0.00% 0.00% 100.00% Per ISO-NE Staff
33 17507 FCA - Auctions & Filings Alloc-Fixed 100.00% 0.00% 0.00% 100.00% Per ISO-NE Staff
34 17508 FCA - Annual Reconfiguration Auction Support/Reliability Reviews Alloc-Fixed 100.00% 0.00% 0.00% 100.00% Per ISO-NE Staff
35
37 11201 System Design Task Force Alloc-Fixed 100.00% 100.00% 0.00% 0.00% Per ISO-NE Staff
38 18201 TR - Transmission System Assessment Alloc-Fixed 100.00% 100.00% 0.00% 0.00% Per ISO-NE Staff
39 18251 TR - Dynamic Swing Recorder Project Alloc-Fixed 100.00% 100.00% 0.00% 0.00% Per ISO-NE Staff
40 18261 TR - Transmission Tariff Information Requirements Alloc-Fixed 100.00% 100.00% 0.00% 0.00% Per ISO-NE Staff
41 18301 TR - NEPOOL Administrative Support - Schedule 1 Tariff Alloc-Fixed 100.00% 100.00% 0.00% 0.00% Per ISO-NE Staff
42 18331 TR - SIS Preparatory Arrangements Alloc-Fixed 100.00% 100.00% 0.00% 0.00% Per ISO-NE Staff
43 18333 TR - General SIS/FS Alloc-Fixed 100.00% 100.00% 0.00% 0.00% Per ISO-NE Staff
44 18334 TR - Indirect Supervision/Clerical Support TP Labor 100.00% 100.00% 0.00% 0.00% Per ISO-NE Staff
45 18335 TR - Regulatory Activities - NPCC TP Labor 100.00% 100.00% 0.00% 0.00% Per ISO-NE Staff
46 18336 TR - National Activities TP Labor 100.00% 100.00% 0.00% 0.00% Per ISO-NE Staff
47 18337 TR - Regulatory Activities TP Labor 100.00% 100.00% 0.00% 0.00% Per ISO-NE Staff
48 18338 TR - Employee Development TP Labor 100.00% 100.00% 0.00% 0.00% Per ISO-NE Staff
49 18339 SWCT RFP 2004 Transmission Assess. TP Labor 100.00% 0.00% 0.00% 100.00% Per ISO-NE Staff
50 18340 TR - NERC Compliance - Old TP Labor 100.00% 100.00% 0.00% 0.00% Per ISO-NE Staff
51 18341 TR NERC Compliance TP Labor 100.00% 100.00% 0.00% 0.00% Per ISO-NE Staff
52 18342 TR - Project Management TP Labor 100.00% 100.00% 0.00% 0.00% Per ISO-NE Staff
53 18343 FERC Order 1000 Alloc-Fixed 100.00% 0.00% 0.00% 100.00% Per ISO-NE Staff
Exhibit 3 (RCL-3)
Schedule 5.0
Page 8 of 11
Line Allocation
(a) (b) (c) (d) (e) (f) (g) (h)
TEST YEAR 2014
2 801 Program Management - Administration Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
3 1661 ISO Program Management Alloc-Fixed 100.00% 0.00% 70.00% 30.00% Per ISO-NE Staff
4 25002 PMO Support Alloc-Fixed 100.00% 30.00% 35.00% 35.00% Per ISO-NE Staff
5 25003 Emerging Work Initiatives Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
6 25706 SMD Minor System Enhancements Alloc-Fixed 100.00% 0.00% 90.00% 10.00% Per ISO-NE Staff
7 25739 Backup Control Center - Test Alloc-Fixed 100.00% 45.00% 45.00% 10.00% Per ISO-NE Staff
8 25741 SSAE 16 Audit Corrective Action Alloc-Fixed 100.00% 33.33% 33.33% 33.33% Per ISO-NE Staff
9 25758 Demand Response Reserve Pilot P1 Alloc-Fixed 100.00% 0.00% 50.00% 50.00% Per ISO-NE Staff
10 25759 Demand Response Reserve Pilot P2 Alloc-Fixed 100.00% 50.00% 25.00% 25.00% Per ISO-NE Staff
11 25788 Facilities Transition Phase 2 Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
12 25795 Long Term Transmission Rights (LTTR) Alloc-Fixed 100.00% 0.00% 100.00% 0.00% Per ISO-NE Staff
13 25798 Architecture Standardization - Phase II Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
14 25822 System Restoration and Blackstart Resource Resource Mgmnt Alloc-Fixed 100.00% 100.00% 0.00% 0.00% Per ISO-NE Staff
15 25825 Tariff Management Software Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
16 25835 FCM Phase III Alloc-Fixed 100.00% 0.00% 0.00% 100.00% Per ISO-NE Staff
17 25840 GE Wind Study Alloc-Fixed 100.00% 0.00% 50.00% 50.00% Per ISO-NE Staff
18 25843 IR Resolution - CAPA Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
19 25849 Allowable Smart Grid SIDU Alloc-Fixed 100.00% 15.00% 15.00% 70.00% Per ISO-NE Staff
20 25850 Unallowable Smart Grid SIDU Alloc-Fixed 100.00% 15.00% 15.00% 70.00% Per ISO-NE Staff
21 25855 Operational Enhancements Alloc-Fixed 100.00% 0.00% 0.00% 100.00% Per ISO-NE Staff
22 25862 Interconnection Agreements PM Tool Alloc-Fixed 100.00% 0.00% 0.00% 100.00% Per ISO-NE Staff
23 25868 Information Delivery OE Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
24 25869 5.21.5 Smart Grid KEMA Admin Alloc-Fixed 100.00% 15.00% 15.00% 70.00% Per ISO-NE Staff
25 25891 Wind Integration Project Alloc-Fixed 100.00% 0.00% 50.00% 50.00% Per ISO-NE Staff
26 25896 Business Intelligence Phase 2 Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
27 25910 Generation Control Applications (GCA) Phase II Alloc-Fixed 100.00% 50.00% 50.00% 0.00% Per ISO-NE Staff
28 25911 Strategic Planning Initiatives Alloc-Fixed 100.00% 0.00% 0.00% 100.00% Per ISO-NE Staff
29 25912 Generation Auditing - Claim 10/30 Alloc-Fixed 100.00% 0.00% 0.00% 100.00% Per ISO-NE Staff
30 25914 Divisional Accounting (for Market Participants) Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
31 25918 Day Ahead Market Timeline Change Alloc-Fixed 100.00% 20.00% 60.00% 20.00% Per ISO-NE Staff
32 25926 Hourly Market Alloc-Fixed 100.00% 40.00% 30.00% 30.00% Per ISO-NE Staff
33 25935 Control Room Visualization Alloc-Fixed 100.00% 100.00% 0.00% 0.00% Per ISO-NE Staff
34
36 21201 Business Architecture and Technology Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
37 21202 BAT - Indirect Supervision/Clerical Support Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
38 21203 BAT - Employee Development Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
39 21204 BAT - Market Standardization Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
40 21205 BAT - System Architecture Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
41 21206 BAT - Smart Grid Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
42
44 16201 Market Rules and Procedures Alloc-Fixed 100.00% 0.00% 40.00% 60.00% Per ISO-NE Staff
45 16605 NEPOOL Committee Support MD Labor 100.00% 0.60% 53.35% 46.05% Per ISO-NE Staff
46 16606 Regional Committee Support MD Labor 100.00% 0.60% 53.35% 46.05% Per ISO-NE Staff
47 16607 National Committee Support MD Labor 100.00% 0.60% 53.35% 46.05% Per ISO-NE Staff
48 16609 Indirect Supervision and Administrative Support MD Labor 100.00% 0.60% 53.35% 46.05% Per ISO-NE Staff
49 16610 NE-NB Better Integration Alloc-Fixed 100.00% 0.00% 100.00% 0.00% Per ISO-NE Staff
50 16611 NY-NE Efficiences Alloc-Fixed 100.00% 0.00% 100.00% 0.00% Per ISO-NE Staff
51 21001 Markets Development Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
52 21002 MD - Indirect Supervision/Clerical Support Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
53 21003 MD - Employee Development Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
54 21007 MD - Budget/Forecast Support Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
55 21009 Increased Scope of Impact Analysis Alloc-Fixed 100.00% 26.00% 66.00% 8.00% Per ISO-NE Staff
56 21102 ME - Indirect Supervision/Clerical Support Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
Exhibit 3 (RCL-3)
Schedule 5.0
Page 9 of 11
Line Allocation
(a) (b) (c) (d) (e) (f) (g) (h)
TEST YEAR 2014
1 407 Market Design
2 22601 MDes-Direct Supervision&Clerical Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
3 22602 MDes-Committee Meetings Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
4 22603 MDes-Employee Development Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
5 22606 MDes-Market Analysis/Governing Documents Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
6 22607 MDes - NEPOOL Markets Committee Administration Alloc-Fixed 100.00% 10.00% 45.00% 45.00% Per ISO-NE Staff
7 22608 MDes - Market Rules Alloc-Fixed 100.00% 10.00% 45.00% 45.00% Per ISO-NE Staff
8 22609 MDes - ISO Integration Team Alloc-Fixed 100.00% 20.00% 40.00% 40.00% Per ISO-NE Staff
9
11 22401 Demand Response Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
12 22402 DR-Regulatory Ccmmittees and Working Groups Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
13 22403 DR-IBCS Open Solution Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
14 22404 RFP Linkages Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
15 22406 DR-Filings/Reports Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
16 22407 DR-Evaluation Alloc-Fixed 100.00% 50.0% 20.0% 30.0% Per ISO-NE Staff
17 22408 DR-SWCT RFP Support Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
18
20 6517 Employee Development - Hardware/Software Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
21 6519 Indirect Supervision and Clerical Support Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
22 6552 IT - Security Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
23 6554 IT - NESEC Project Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
24 6555 IT - Procedure Development Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
25 6556 IT - Budget Preparation, Tracking & Forecast Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
26 6557 IT - Information Technology Committee Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
27 6559 IT - Server Consolidation Project Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
28
30 6510 Desktop Support - Hardware Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
31 6511 Desktop Support - Software Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
32 6512 Host Computer - Hardware Alloc-Fixed 100.00% 0.00% 75.00% 25.00% Per ISO-NE Staff
33 6513 Host Computer - Software Alloc-Fixed 100.00% 0.00% 75.00% 25.00% Per ISO-NE Staff
34 6514 Networking - Hardware Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
35 6515 Networking - Software Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
36 6516 Communications Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
37 6550 IT - Data Communications Support Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
38 6602 Help Desk Support Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
39 6615 IT - Host Computer Monitoring Alloc-Fixed 100.00% 0.00% 50.00% 50.00% Per ISO-NE Staff
40 6616 IT - Desktop Support Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
41 6617 IT - System Administration - Unix Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
42 6618 IT - System Administration - Windows Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
43 6619 IT - Systems Support Misc Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
44 6620 IT - Systems Support - Security Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
45 6621 IT - Network Support Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
46 6622 IT - Network/Systems Compliance 2009 Initiative Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
47 6623 IT - Asset Management Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
48
50 6539 IT Policy/Procedures Program Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
51 6539A Activation/Reactivation Work Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
52 6540 IT Security Compliance and Reporting Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
53 6540A IT Controls Assessment Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
54 6540B IT Virus/Malware Reporting and Response Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
55 6540D IT Intrusion Monitoring and Response Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
56 6540E IT System Compliance Enhancement Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
57 6541 IT Security SW Tools Program Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
58 6543 Critical Infrastructure Protection WG (NERC) Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
59 6544 Infragrad (FBI) Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
60 6546 IT Internal Audit Support Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
61 6547 IT - Security Training Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
62 6548 CIP Compliance & Monitoring Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
Exhibit 3 (RCL-3)
Schedule 5.0
Page 10 of 11
Line Allocation
(a) (b) (c) (d) (e) (f) (g) (h)
TEST YEAR 2014
2 21801 IT Markets Software Support - Settlements Alloc-Fixed 100.00% 0.00% 80.00% 20.00% Per ISO-NE Staff
3 21802 IT Markets Software Support - Publishing Alloc-Fixed 100.00% 0.00% 80.00% 20.00% Per ISO-NE Staff
4 21803 IT Markets Software Support - Finance Alloc-Fixed 100.00% 0.00% 80.00% 20.00% Per ISO-NE Staff
5 21804 IT Markets Software Support - Mitigation Alloc-Fixed 100.00% 0.00% 80.00% 20.00% Per ISO-NE Staff
6 21805 IT Markets Software Support - TSO Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
7 21806 IT Markets Software Support - Enterprise Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
8 21807 IT Markets Software Support - Planning Alloc-Fixed 100.00% 0.00% 80.00% 20.00% Per ISO-NE Staff
9 21808 IT CM/QA - Training Delivery to NON-IT Alloc-Fixed 100.00% 0.00% 80.00% 20.00% Per ISO-NE Staff
10 21809 IT CM/QA - Tools Alloc-Fixed 100.00% 0.00% 80.00% 20.00% Per ISO-NE Staff
11 21810 IT Issue Resolution Alloc-Fixed 100.00% 0.00% 80.00% 20.00% Per ISO-NE Staff
12 21811 FSIT - Single Sign On Support Alloc-Fixed 100.00% 0.00% 80.00% 20.00% Per ISO-NE Staff
13 21812 FSIT - GADS Support Alloc-Fixed 100.00% 0.00% 80.00% 20.00% Per ISO-NE Staff
14 21813 FSIT - Service Management Support Alloc-Fixed 100.00% 0.00% 80.00% 20.00% Per ISO-NE Staff
15 21816 CMS Support Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
16 21819 Ceridian Support Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
17 21821 Compliance Management Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
18 9704 NEPOOL OASIS Administration Alloc-Fixed 100.00% 100.00% 0.00% 0.00% Per ISO-NE Staff
19 6571 DBA Support - MOPS Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
20 21706 IT Markets Software Development - Enterprise Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
21 9705 VACAR OASIS Administration Alloc-Fixed 100.00% 100.00% 0.00% 0.00% Per ISO-NE Staff
22 6581 Oracle Support - MOPS Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
23 6591 Data Architect - MOPS Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
24 6594 IT Data Analyst Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
25 6595 IT WEB Application Support Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
26 6702 IT WEB Support Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
27 21814 IT - Manual Database Edit Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
28
30 21600 EMS - Indirect Supervision and Administration Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
31 21601 EMS - Power System Modeling Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
32 21602 EMS - Applications Development Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
33 21603 EMS - Applications Support Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
34 21604 EMS/DTS Support Alloc-Fixed 100.00% 80.00% 20.00% 0.00% Per ISO-NE Staff
35 21605 EMS - DAM Support Alloc-Fixed 100.00% 20.00% 60.00% 20.00% Per ISO-NE Staff
36 21606 EMS - Real-time Market Support Alloc-Fixed 100.00% 20.00% 60.00% 20.00% Per ISO-NE Staff
37 21607 EMS - Forecast Support Alloc-Fixed 100.00% 20.00% 60.00% 20.00% Per ISO-NE Staff
38 21608 EMS - FTR Support Alloc-Fixed 100.00% 0.00% 100.00% 0.00% Per ISO-NE Staff
39
40 210 IT Change Management
41 22501 IT CM/QA - Change Management Support Alloc-Fixed 100.00% 45.00% 45.00% 10.00% Per ISO-NE Staff
42 22502 IT CM/QA - QA Support Alloc-Fixed 100.00% 34.00% 33.00% 33.00% Per ISO-NE Staff
43 22504 IT CM/QA - ISO 900x Support Alloc-Fixed 100.00% 34.00% 33.00% 33.00% Per ISO-NE Staff
44 22505 IT CM/QA - Administrative Alloc-Fixed 100.00% 34.00% 33.00% 33.00% Per ISO-NE Staff
45 22506 IT CM/QA - External Meeting Support Alloc-Fixed 100.00% 34.00% 33.00% 33.00% Per ISO-NE Staff
46 22507 IT CM/QA - Training Delivery to IT Alloc-Fixed 100.00% 34.00% 33.00% 33.00% Per ISO-NE Staff
47 22508 IT CM/QA - Training Delivery to NON-IT Alloc-Fixed 100.00% 34.00% 33.00% 33.00% Per ISO-NE Staff
48 22509 IT CM/QA - Tools Alloc-Fixed 100.00% 34.00% 33.00% 33.00% Per ISO-NE Staff
49 22510 IT CM/QA - Configuration Management Support Alloc-Fixed 100.00% 34.00% 33.00% 33.00% Per ISO-NE Staff
50 22511 IT CM/QA - Professional Training Alloc-Fixed 100.00% 34.00% 33.00% 33.00% Per ISO-NE Staff
51 22512 IT CM/QA - Daily Code Reconciliation Alloc-Fixed 100.00% 34.00% 33.00% 33.00% Per ISO-NE Staff
52 22513 IT NPCC - Product Build Alloc-Fixed 100.00% 0.00% 0.00% 100.00% Per ISO-NE Staff
53 22514 IT NPCC - Service/Maintenance Alloc-Fixed 100.00% 0.00% 0.00% 100.00% Per ISO-NE Staff
54 22515 IT - General Counsel Support Data Retrieval Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
55
57 21701 IT Settlement Application Support Alloc-Fixed 100.00% 0.00% 20.00% 80.00% Per ISO-NE Staff
58 21702 IT Corporate Application Support Alloc-Fixed 100.00% 0.00% 20.00% 80.00% Per ISO-NE Staff
59 21703 IT WEB & TSO Application Support Alloc-Fixed 100.00% 0.00% 20.00% 80.00% Per ISO-NE Staff
60 21707 Application Analysis and Conceptual Design Alloc-Fixed 100.00% 0.00% 80.00% 20.00% Per ISO-NE Staff
61 21708 Application Design Evaluation and Selection Alloc-Fixed 100.00% 0.00% 80.00% 20.00% Per ISO-NE Staff
62 21709 Technology Evaluation and Selection Alloc-Fixed 100.00% 0.00% 80.00% 20.00% Per ISO-NE Staff
63 21710 ESD - Indirect Supervision and Administration Alloc-Fixed 100.00% 0.00% 80.00% 20.00% Per ISO-NE Staff
64 21711 EWR and CAPA Analysis Alloc-Fixed 100.00% 0.00% 80.00% 20.00% Per ISO-NE Staff
65 6518 Employee Development - Software Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
66
67 215 IT Software Systems Testing
68 21752 SST-Web Support Alloc-Fixed 100.00% 35.00% 35.00% 30.00% Per ISO-NE Staff
69 21753 SST-TSO Support Alloc-Fixed 100.00% 5.00% 5.00% 90.00% Per ISO-NE Staff
70 21754 SST-Settlement Support Alloc-Fixed 100.00% 35.00% 35.00% 30.00% Per ISO-NE Staff
71 21755 SST-MSS Support Alloc-Fixed 100.00% 40.00% 45.00% 15.00% Per ISO-NE Staff
72 21756 SST-EMS Support Alloc-Fixed 100.00% 35.00% 35.00% 30.00% Per ISO-NE Staff
73 21757 SST-Market Support Alloc-Fixed 100.00% 35.00% 35.00% 30.00% Per ISO-NE Staff
74 21758 SST-Operations Support Alloc-Fixed 100.00% 40.00% 45.00% 15.00% Per ISO-NE Staff
75 21759 SST-Finance Support Alloc-Fixed 100.00% 35.00% 35.00% 30.00% Per ISO-NE Staff
76 21760 SST-Infrastructure Support Alloc-Fixed 100.00% 35.00% 35.00% 30.00% Per ISO-NE Staff
Exhibit 3 (RCL-3)
Schedule 5.0
Page 11 of 11
Line Allocation
(a) (b) (c) (d) (e) (f) (g) (h)
TEST YEAR 2014
2 21650 PSMM- Indirect Supervision and Administration Total Dir Labor 100.00% 21.55% 51.75% 26.70% Per ISO-NE Staff
3 21651 PSMM- Power System Modeling Alloc-Fixed 100.00% 40.00% 40.00% 20.00% Per ISO-NE Staff
4 21652 PSMM- System Application Support Alloc-Fixed 100.00% 40.00% 40.00% 20.00% Per ISO-NE Staff
5 21653 PSMM-TTSE Support Alloc-Fixed 100.00% 80.00% 20.00% 0.00% Per ISO-NE Staff
6 21654 PSMM- NX9 Administration Alloc-Fixed 100.00% 40.00% 40.00% 20.00% Per ISO-NE Staff
7 21655 PSMM- ICCP Support Alloc-Fixed 100.00% 40.00% 40.00% 20.00% Per ISO-NE Staff
8 21656 PSMM- Transmission Project Management Alloc-Fixed 100.00% 80.00% 20.00% 0.00% Per ISO-NE Staff
9 21657 PSMM- Model On Demand Admin Alloc-Fixed 100.00% 0.00% 0.00% 100.00% Per ISO-NE Staff
10 21658 PSMM- Model on Demand Case Requests Alloc-Fixed 100.00% 0.00% 0.00% 100.00% Per ISO-NE Staff
11
13 14801 ROC - Compliance Monitoring Alloc-Fixed 100.00% 40.00% 40.00% 20.00% Per ISO-NE Staff
14 14802 ROC - NEPOOL Committee Support OS Labor 100.00% 50.00% 0.00% 50.00% Per ISO-NE Staff
15 14803 ROC - Regional Committee Support OS Labor 100.00% 50.00% 0.00% 50.00% Per ISO-NE Staff
16 14804 ROC - National Committee Support OS Labor 100.00% 50.00% 0.00% 50.00% Per ISO-NE Staff
17 14805 ROC - Indirect Supervision/Clerical Support Alloc-Fixed 100.00% 55.55% 19.33% 25.12% Per ISO-NE Staff
18 14806 ROC - Employee Development Alloc-Fixed 100.00% 55.55% 19.33% 25.12% Per ISO-NE Staff
19 14807 ROC - Compliance Audit OS Labor 100.00% 50.00% 0.00% 50.00% Per ISO-NE Staff
20 14808 ROC - Change Management Alloc-Fixed 100.00% 45.00% 10.00% 45.00% Per ISO-NE Staff
21 14809 ROC - Tariff Compliance Alloc-Fixed 100.00% 30.00% 60.00% 10.00% Per ISO-NE Staff
22 14810 ROC - NERC Self Certifications Alloc-Fixed 100.00% 85.00% 0.00% 15.00% Per ISO-NE Staff
23 14811 ROC - NERC Spot Check/CVI Alloc-Fixed 100.00% 45.00% 10.00% 45.00% Per ISO-NE Staff
Exhibit 3 (RCL-3)
Schedule 6.0
Page 1 of 1
Line
No. Description Total Adjustments Adj. Total Total Schedule 1 Schedule 2 Schedule 3
(a) (b) (c) (d) (e) (f) (g) (h) (i)
1 2014 Items:
2 Facilities Project - $ - $ - $ - $ - $ . - $
3 Back-up Control Center - - - - - - -
3 Furniture, Fixtures, and Equipment 14,286 14,286 14,286 3,079 7,393 3,814
4 Non-Project Capital Spending (Hardware and Software) 166,667 - 166,667 166,667 35,917 86,250 44,500
5 Market Systems and Enhancement Projects 83,333 - 83,333 83,333 17,958 43,125 22,250
6 Non-Market Systems and Enhancement Projects 363,889 - 363,889 363,889 90,632 167,604 105,653
7 Total 2014 Items - $ 628,175 $ - $ 628,175 $ 628,175 $ 147,586 $ 304,372 $ 176,217 $
8 Total 2014 Items - % 100.00% 23.49% 48.45% 28.05%
9
10 2013 Items:
11 Facilities Project 16,168 $ - $ 16,168 $ 16,168 $ 3,484 $ 8,367 $ 4,317 $
12 Back-up Control Center 2,086,922 - 2,086,922 2,086,922 449,732 1,079,982 557,208
14 Market Systems and Enhancement Projects 4,942,463 - 4,942,463 4,942,463 688,880 2,454,323 1,799,260
15 Non-Market Systems and Enhancement Projects 4,247,745 - 4,247,745 4,247,745 1,054,158 1,515,956 1,677,631
16 Total 2013 Items - $ 12,112,578 $ - $ 12,112,578 $ 12,112,578 $ 2,372,808 $ 5,482,605 $ 4,257,164 $
17 Total 2013 Items - % 100.00% 19.59% 45.26% 35.15%
18
19 2012 Items:
24 Non-Market Systems and Enhancement Projects 2,422,055 $ - 2,422,055 2,422,055 553,547 1,295,407 573,101
25 Total 20112Items - $ 5,898,004 $ - $ 5,898,004 $ 5,898,004 $ 1,052,439 $ 2,776,855 $ 2,068,709 $
26 Total 2012 Items - % 100.00% 17.84% 47.08% 35.07%
27
28 2011 Items:
30 Furniture, Fixtures, and Equipment 4,031 4,031 4,031 869 2,086 1,076
33 Non-Market Systems and Enhancement Projects 3,118,668 - 3,118,668 3,118,668 572,200 1,761,746 784,723
34 Total 2011 Items - $ 6,381,461 $ - $ 6,381,461 $ 6,381,461 $ 1,289,786 $ 3,120,888 $ 1,970,787 $
35 Total 2011 Items - % 100.00% 20.21% 48.91% 30.88%
36
37 2010 Items:
39 Furniture, Fixtures, and Equipment 1,537 1,537 1,537 331 796 410
40 Non-Project Capital Spending (Hardware and Software) - - - - - - -
43 Total 2010 Items - $ 1,549,852 $ - $ 1,549,852 $ 1,549,852 $ 499,436 $ 661,498 $ 388,919 $
44 Total 2010 Items - % 100.00% 32.2% 42.7% 25.1%
45
46 2009 Items:
48 Furniture, Fixtures, and Equipment 965 965 965 208 500 258
49 Non-Project Capital Spending (Hardware and Software) 313 - 313 313 67 162 83
52 Total 2009 Items - $ 87,339 $ - $ 87,339 $ 87,339 $ 42,272 $ 32,031 $ 13,037 $
53 Total 2009 Items - % 100.00% 48.40% 36.67% 14.93%
54
55 2008 Items:
59 Market Systems and Enhancement Projects 18,620 - 18,620 18,620 18,620 - -
60 Non-Market Systems and Enhancement Projects 2,013 - 2,013 2,013 434 1,042 537
61 Total 2008 Items - $ 49,066 $ - $ 49,066 $ 49,066 $ 25,181 $ 15,756 $ 8,129 $
62 Total 2008 Items - % 100.00% 51.32% 32.11% 16.57%
63
64 2007 Items:
66 Furniture, Fixtures, and Equipment 2,900 2,900 2,900 625 1,501 774
68 Market Systems and Enhancement Projects 2 - 2 2 0 1 1
69 Non-Market Systems and Enhancement Projects 3,898 - 3,898 3,898 840 2,017 1,041
70 Total 2007 Items - $ 168,997 $ - $ 168,997 $ 168,997 $ 36,419 $ 87,456 $ 45,122 $
71 Total 2007 Items - % 100.00% 21.55% 51.75% 26.70%
72
73 2006 Items:
75 Furniture, Fixtures, and Equipment - - - - - -
77 Market Systems and Enhancement Projects - - - - - - -
78 Non-Market Systems and Enhancement Projects - - - - - - -
79 Total 2006 Items - $ 570,895 $ - $ 570,895 $ 570,895 $ 123,028 $ 295,438 $ 152,429 $
80 Total 2006 Items - % 100.00% 21.55% 51.75% 26.70%
81
82 2005 Items:
83 Building/property improv. (Renov. workspace, network & voice rewiring) 787,995 $ - $ 787,995 $ 787,995 $ 169,813 $ 407,787 $ 210,395 $
84 Enhancements to Other Existing Market Systems - - - - - - -
85 Hardware and Software Upgrades to existing Non Market Systems - - - - - - -
86 Capital Interest/Fees 14,622 - 14,622 14,622 - 9,577 5,044
87 Internal Development Costs - - - - - - -
88 Amortization of Reg Asset - - - - - -
89 Total 2005 Items - $ 802,617 $ - $ 802,617 $ 802,617 $ 169,813 $ 417,365 $ 215,439 $
90 Total 2005 Items - % 100.00% 21.16% 52.00% 26.84%
91
92 2004 Items:
93 Building/property improv. (Renov. workspace, network & voice rewiring) 41,709 $ - $ 41,709 $ 41,709 $ 8,988 $ 21,585 $ 11,136 $
94 Enhancements to Other Existing Market Systems - - - - - - -
95 Hardware and Software Upgrades to existing Non Market Systems - - - - - -
96 Internal Development Costs - - - - - - -
97 Capital Interest/Fees 14,950 - 14,950 14,950 - 9,793 5,158
98 Total 2004 Items - $ 56,660 $ - $ 56,660 $ 56,660 $ 8,988 $ 31,377 $ 16,294 $
99 Total 2004 Items - % 100.00% 15.86% 55.38% 28.76%
100
101 Total Budgeted Depreciation 28,305,642 $ - $ 28,305,642 $ 28,305,642 $ 5,767,756 $ 13,225,641 $ 9,312,246 $
102 - % 100.00% 20.38% 46.72% 32.90%
FERC Docket No. ER14-____-000
ALLOCATION ON DEPRECIATION AND AMORTIZATION EXPENSE
TEST YEAR 2014
Depreciation Self-Funding Tariff
Exhibit 3
RCL-5
Schedule 1
2014 Operating Expense Budget
Line No. Cost Category Amount
(a) (b)
1 Revenues and Other Income (459,860) $
2 Salaries and Overhead 96,893,649
3 Professional Fees & Consultants 13,194,229
4 Building Services 3,095,447
5 Rents/Leases 1,002,333
6 Communication Expenses 2,047,585
7 Computer Services 8,583,144
8 Data Services and Office Expenses 1,178,750
9 NPCC/NERC Dues 5,322,624
10 Insurance Expense 2,011,313
11 Meetings & Related Expenses 1,526,096
12 Education & Training 1,234,657
13 Regulatory Fees, Taxes, and Licenses 342,685
14 CEO Emerging Work Allowance 1,100,000
15 Operating Contingency 700,000
16 Net Expense before Depreciation and Debt Service 137,772,652
17
18 Depreciation and Debt Service 31,551,544
19
20 Total Operating Expense Budget 169,324,196 $
Exhibit 3
RCL - 5
Schedule 2
Page 1
Line No. Revenues and Other Income
1 Interest income (118,792)
2 Includes fees for Participant training seminars and materials (227,568)
3 Grant Revenues -
4 Purchase Discounts (113,500)
5 (459,860) $
6 Salaries and Overhead
7 Salaries 72,617,870
8 Payroll Taxes and Employee Benefits 23,105,369
9 Board Fees and Expenses 1,170,410
10 96,893,649
11 Professional Fees and Consultants
12 Consulting
13
Information Technology support for market system maintenance, Energy
Management System maintenance, Network and Desktop Support,
Architecture planning, Cyber Security, IT Asset Management and
Network Model Tools.
2,162,350
14
Market Advisor, Demand Resources, Market Development, Market
Services, Various R&D projects, including special projects for Impact
Analysis, Intra-Day Offers, and Winter 2014/2015 Reliability.
3,202,168
15
Resource Adequacy (including FCM Analytical and Auction Work),
Transmission Planning (including FERC Order 1000, OATT/Generation
Interconnection Work & Project Planning, Elective Transmission Upgrade
Process, and Short Circuit Analysis), Operations and Operations
Planning.
2,188,673
16
Human Resource Consulting and Recruiting Services 1,410,520
17
Legal fees 2,345,000
18
Includes legal fees for OATT, regulatory filings, energy markets, market
rules and proceedings, FERC Order 1000, Price Response Demand,
Market Monitoring Support, Sitting costs, TCA allocations, new
intiatives/emerging issues funding, tariff and corporate matters, and
miscellaneous labor matters.
Exhibit 3
RCL - 5
Schedule 2
Page 2
19
External Affairs 427,648
20
Corporate Communications Support 205,110
21
Market Monitoring 180,000
22
Auditors fees - SSAE Type 16 Audit, Operations, Financial, Pension, Payroll Audits 632,800
23
Risk and Quality Management and Reliability and Operations Compliance 116,200
24
Finance Support and Payroll Service, Misc Other 323,760
25 13,194,229
26 Building Services
27 Repairs and maintenance 476,812
28 Utilities 1,323,000
29 Miscellaneous (groundskeeping, supplies, building security) 1,295,635
30 3,095,447
31 Rents/Leases
32 Building lease and rent for current Backup Control Ctr (partial year) 111,846
33 Various office equipment leases 848,232
34 Auto leases and Auto Maintenance 42,255
35 1,002,333
36 Communications Expenses
37 Shared microwave 240,000
38 Network circuits and Internet circuits 840,507
39 Telephone and long distance lines 741,034
40 Miscellaneous maintenance and service items 226,044
41 2,047,585
42 Computer Services
43 Software and licensing costs 1,299,177
44 Maintenance contracts 7,129,767
45 Computer supplies 154,200
46 8,583,144
47 Data Services and Office expenses
48 Office supplies 121,150
49 Postage and courier 36,600
50 Printing Expense 119,140
51 Data Services, Dues, and subscriptions 786,113
52 Office equipment maintenance 96,582
53 Other Miscellaneous 19,165
54
1,178,750
Exhibit 3
RCL - 5
Schedule 2
Page 3
55
56 NPCC/NERC Dues
57 Budget for NPCC and NERC Dues 5,322,624
58
59 Insurance Expense
60 Property and liability 1,658,885
61 Directors and officers 352,428
62 2,011,313
63
64 Meetings & Related Expenses 1,526,096
65
Includes travel and related expenses for stakeholder meetings
throughout the region, for regulatory meetings and support including
FERC, NERC, NPCC, and state agencies, and for attendance at Industry
and Other Conference attendance, in addition to other miscellaneous
travel reimbursement and employee service recognition
66
67 Education & Training 1,234,657
68
Includes funding for Enterprise wide training including Leadership
Development, Power System Management Degree Program, Cyber
Security Degree Program, Technical and NERC Certification Training,
Management and General Training, and Education Reimbursement
69
70 Regulatory Fees, Taxes and Licenses
71 Real estate tax 240,000
72 Business license and Bank Fees 102,685
73 342,685
74
75 CEO Emerging Work Allowance
76 New activities and initiatives that occur during the year. 1,100,000
77
78 Operating Contingency
79 Funding of last resort to cover unknown expenses. 700,000
80
Exhibit 3
RCL - 5
Schedule 2
Page 4
81 Depreciation and Debt Service of Capitalized Costs
82 Depreciation and Amortization expense and Disposal 28,406,205
83 Interest expense 3,145,339
84 31,551,544
85
86 Total Operating Expense Budget 169,324,196 $
Exhibit 3
RCL-5
Schedule 3
Operating Expense Budget
Variance Summary
Proposed Year 2014 Budget vs 2013 Budget
(amounts in thousands)
Line No. DESCRIPTION
Proposed
Annual Budget
2014
Original 2013
Budget
Variance 2014
Budget vs 2013
Budget
Inc/(Decrease)
1 Revenues and Other Income (459.9) $ (647.4) $ 187.5 $
2 Salaries and Overhead 96,893.6 95,740.6 1,153.1
3 Professional Fees & Consultants 13,194.2 12,959.0 235.2
4 Building Services 3,095.4 1,961.5 1,133.9
5 Rents/Leases 1,002.3 551.3 451.0
6 Communication Expenses 2,047.6 2,043.4 4.2
7 Computer Services 8,583.1 7,612.2 971.0
8 Data Services and Office Expenses 1,178.8 1,190.3 (11.5)
9 NPCC/NERC Dues 5,322.6 5,055.8 266.9
10 Insurance Expense 2,011.3 1,888.0 123.3
11 Meetings & Related Expenses 1,526.1 1,438.2 87.9
12 Education & Training 1,234.7 1,106.5 128.2
13 Regulatory Fees, Taxes, and Licenses 342.7 196.7 145.9
14 CEO Emerging Work Allowance 1,100.0 1,100.0 -
15 Operating Contingency 700.0 700.0 -
16 Net Expense before Depreciation and Debt Service 137,772.7 132,896.1 4,876.5
17
18 Depreciation and Debt Service 31,551.5 31,145.6 405.9
19
20 Total Operating Expense Budget 169,324.2 $ 164,041.7 $ 5,282.5 $
Exhibit 3
RCL-5
Schedule 4
Page 1
Change in Operating Expense Budgets
Proposed Year 2014 Budget vs. 2013 Budget
(Amounts in thousands)
Line No.
1 Revenues and Other Income
2 Department of Energy Reimbursable Funds 211.0
3 Interest Income (30.8)
4 Participant Market Training Fees 10.9
5 Purchase Discounts (3.5)
6 Total change in Revenues and Other Income 187.5 $
7
8 Salaries and Overhead
9 Merit and Promotion 2,708.9
10 Net Increase of 8 Additional Staff, net of change in vacancy rate 591.9
11 Post Retirement Benefit and Pension Costs (2,007.3)
12 Various Other Changes to Salaries and Overheads (140.5)
13 Total change in Salaries and Overhead 1,153.1
14
15 Professional Fees and Consultants
16
COO Admin - Winter 2014/2015 $450K, Intra-Day Offers $450K, Impact Analysis $400K,
Cyber Security Risks $300K, Resource Performance & Flexibility $(392)K, Gas Study
$(313)K, FCM $(235)K and Alignment of Planning & Markets $(250)K.
425.0
17 Transmission Strategy & Services - $750K for FERC Order 1000 750.0
18 IT Power System Modeling Management 183.8
19
IT - Asset & License Management - Department new for 2013; 2014 Budget includes
consulting work of $105K, and $15K for Asset Management Baseline Assessment.
120.9
20
System Operations - Administration - $118.0K for 2014 is Synchrophasor Infrastructure
and Data Utilization (SIDU) related - $50K for American Recovery and Reinvestment
Act/Department of Energy reporting, $50K for Phasor Point Maintenance, and $18K for
Compliance Monitoring
118.0
21
Internal Audit - Payroll Audit $27K, SIDU Project Wrap Up $15K, Institute of Internal
Auditors Self Assessment $12K, Statement on Standards for Attestation Engagements 16
Audit $11K, Audit Command Language Updates $8.4K, additional Algorithm Certification
$5K and Other minor changes $(0.5)K.
77.9
22
Legal - Decrease for Capacity Markets Development & Installed Capacity Requirements
$(420)K, OATT Proceedings $(66)K, General Corporate Proceedings $(60)K, $(16)K Other
minor changes.
(562.0)
23
Program Management - All 2013 Fees were SIDU related. With project completion in 2013
PMO has removed all SIDU project funds (on-going costs are System Operations)
(311.0)
24
Operations Support Services - Reductions of $(119.6)K for Engineering Support, $(23.0)K
for Black Start Analysis and $(5.0)K Other minor changes.
(147.6)
25 Human Resources - Board Search $(100)K, Relocation $(63)K (147.6)
26
Finance - Reduction in Strategic Planning Work $(225.0)K , Reduction in Payroll Services
$(48.3)K, BCC Moving Expense $137.7K, Other minor changes $10.1K
(125.5)
27 Market Operations Support Services reduction in consultant hours and fees (84.5)
28 IT System/Network & Desktop (60.0)
29 Other minor changes (2.2)
30 Total change in Professional Fees and Consultants 235.2
31
32 Building Services
Increase in Building Services due to the opening of the ISOs new Backup Control Center
which includes Physical Security, Utilities, and Maintenance and Upkeep $965K,
Uninterruptible Power Supply battery replacement (required every 4 years) $130K, North
Generator Maintenance (completed every 3 years) $24K, Other small changes $15K
1,133.9
33
34 Rents/Leases
Increased costs for the new Backup Control Center which include: $152.7K for a full year
of equipment leases in 2014 for the new BCC (3 months for 2013), $161.1K for AV,
security and copier leases, $217.7K for monitors, computers and laptop leases. These
increases were partially offset by rent reduction of $(79.9)K at the old Backup Control
Center location which will terminate on July 31, 2014.
451.0
35
Exhibit 3
RCL-5
Schedule 4
Page 2
Change in Operating Expense Budgets
Proposed Year 2014 Budget vs. 2013 Budget
(Amounts in thousands)
Line No.
36 Communication Expenses
Increase for Backup Control Center (BCC) facility communication maintenance & long
distance costs $76K, reduction primarily related to Dark Fiber lease costs which will be
reduced as a result of shorter distance to the new BCC compared to the existing BCC
$(74)K, Other small changes $2K.
4.2
37
38 Computer Services
New maintenance/licenses $419.5K due to various capital projects which were completed
in 2013 (SIDU, Web Enhancements Ph II, NX9/NX12), $169.4K for equipment
maintenance/licenses associated with the new Backup Control Center, $143.0K increase
related to new or enhanced software licenses (Mobil Application, cVM Configuration
Manager, server disposal services), $102.0K for Oracle licenses for new
applications/growth (DB Enterprise, Standard Edition, Business Intelligence), $76.3K for
OATI Interchange Distribution Calculator previously funded by NERC, $238.3K for
inflationary increases and other net changes. These increases were offset by savings of
$(177.5)K for Veritas/Sun Server maintenance as a result of the Markets Database
Infrastructure Project.
971.0
39
40
Reductions include $(75.0)K for Ventyx (Velocity Sweet) subscription for data analysis and
monitoring and $(19.3)K for Matching Gift donations and annual Golf Tournament. These
reductions were partially offset by increases of $25K for M. J. Bradley & Associates
strategic information service subscription, $19.0K for HR Leadership Council Dues, $18.0K
for office supplies and other expenses associated with the new Backup Control Center,
$14.0K increase for Committee of Chief Risk Officers subscription, and $6.8K increases
across various departments.
(11.5)
41
42 NPCC/NERC Dues Pass through of increases in NPCC and NERC budgets. 266.9
43
44 Insurance Expense
Projected rate increases based on estimates provided by carriers along with the additional
cost for the new Backup Control Center.
123.3
45
46 Meetings & Related Expenses
Increases include $84.0K for travel reimbursement for certain employees who will incur
additional cost to travel to the new Backup Control Center including those in Operations,
Operations Training and Information Technology, $3.9K for various other changes.
87.9
47
48 Education & Training
Increases include $64.0K for Cyber Security training, $44.0K for company-wide training,
$20.2K for various increases across departments.
128.2
49
50
Increase of $100K for taxes associated with the new backup control center, and $45.K
estimated for increased bank fees due to higher account fees in addition to an expected
decrease in the earning allowance on account balances.
145.9
51
52 Total Change in Net Expense before Depreciation and Debt Service 4,876.5 $
53
54 Depreciation and Debt Service
Depreciation expense decreased $(118.5)K. Projects that will become fully depreciated by
2014 reducing expense include Forward Capacity Market (FCM) Phase III, FCM
Enhancements, Outage Coordination Economic Analysis Tool Phase I, and Facility Outage
Scheduler Phase II. These decreases will be largely offset for capital projects placed in
service mid-2013 or mid-2014 including the new Backup Control Center, the Simultaneous
Feasibility Test and Market System Upgrade project, Markets Database Infrastructure
Update, Forward Capacity Auction 8 project, Generation Auditing - Claims 10/30, and
Alternative Technologies and Regulation Market. Increases also include land amortization
of $25.5K for the new Backup Control Center and $15K for expected loss on disposal of
hardware.
(78.1)
55 Interest Expense
Primarily related to increases associated with the early renewal of $39M Placement debt
maturing in 2014, in order to lock in a favorable interest rate.
484.0
56 Total Depreciation and Debt Service 405.9
57
58 Total Change in Operating Expense Budget 5,282.5 $
Data Services and Office Expenses
Regulatory Fees, Taxes, and
Licenses
Exhibit 3
RCL - 5
Schedule 5
Page 1
Staffing Projections

Line No. Department
2013 Budget
Staff Level
2014 Budget
Staff Level
1 COO - Administration 8.0 8.0
2
3 System Operations Management 5.0 5.0
4 Operations 59.0 59.0
5 Operations Support Services 31.0 31.0
6 System Operations Support 8.0 8.0
7 System Operations 103.0 103.0
8
9 Resource Adequacy 26.0 26.0
10 Transmission Planning 18.0 19.0
11 Transmission Strategy & Services 9.0 9.0
12 System Planning 8.0 8.0
13 Reliability and Operations Services 3.0 3.0
14 System Planning 64.0 65.0
15
16 Customer Service and Training 14.0 14.0
17 Markets Operations Administration 4.0 4.0
18 Market Operations Support Services 12.0 12.0
19 Settlements 21.0 22.0
20 Market Operations 25.0 25.0
21 Market Operations 76.0 77.0
22
23 Mkt Development Admin 5.0 5.0
24 Market Design 3.0 3.0
25 Markets Development 11.0 11.0
26 Demand Resource Strategy 2.0 2.0
27 Markets Development 21.0 21.0
28
29 Energy Management Systems 24.0 26.0
30 Enterprise Applications Development 18.0 18.0
31 Cyber Security 6.0 7.0
32 Enterprise Applications Support 14.0 14.0
Exhibit 3
RCL - 5
Schedule 5
Page 2

Line No. Department
2013 Budget
Staff Level
2014 Budget
Staff Level
33 Systems/Network & Desktop 35.0 36.0
34 IT Management 5.0 6.0
35 IT System Testing 2.0 2.0
36 Power System Modeling Management 11.0 11.0
37 DB & Ent Support Services 20.0 20.0
38 Sftwr Dev & Pow Sys Supp Admin 4.0 4.0
39 Infra & Ent Supp Svs Admin 6.0 3.0
40 IT Asset & License Management - 1.0
41 Information Technology 145.0 148.0
42
43 Business Architecture and Technology 10.0 10.0
44 Program Management 20.0 20.0
45
46 Total COO 447.0 452.0
47
48 Chief Executive Officer - Administration 9.0 9.0
49
50 Enterprise Risk Management 10.0 10.0
51 Building Services 3.0 3.0
52 Reliability, Operations, and Compliance 6.0 6.0
53 Finance 20.0 20.0
54 Finance and Compliance 39.0 39.0
55
56 Legal Department 13.0 14.0
57 Corporate Communications & External Affairs 17.0 17.0
58 Legal and Public Affairs 30.0 31.0
59
60 Human Resources 13.0 13.0
61
62 Market Monitoring and Mitigation 8.0 5.0
63
64 Market Monitoring Assessment and Investigation 10.0 13.0
Exhibit 3
RCL - 5
Schedule 5
Page 3

Line No. Department
2013 Budget
Staff Level
2014 Budget
Staff Level
65
66 Internal Audits 5.0 5.0
67
68 Total Administration 114.0 115.0
69
70 Total FTE's 561.0 567.0
71
72 Total Part-timers (X @ 0.5) 2.0 1.0
73
74 Total Number of Employees 563.0 568.0
Note: Staffing levels are net of the estimated and budgeted vacancy.
Exhibit 3
RCL - 5
Schedule 6
2014 Capital Budget
Line No. Description 2014
1 Capital Projects - Approved Charters
2 . Coordinated Transaction Scheduling $3,800,000
3 . Generation Control Application (GCA) Production Part 1 2,400,000
4 . Divisional Accounting 1,230,000
5 . Alternative Technologies and Regulation Market (ATRM) Project 1,000,000
6 . Backup Control Center Data Center Transition 611,000
7 . Forward Capacity Market (FCM) Terminations & Retirements 570,100
8 . Simultaneous Feasibility Test (SFT) and Market System Upgrade 280,000
9 . Forward Capacity Auction (FCA) 8 Project 200,000
10 . Web Enhancements Phase II 150,000
11 . Wind Integration Phase I 105,000
12 . Pre-requisite UDS Changes for GCA 100,000
13 . Control Room Visualization Project 80,800
14 Subtotal Projects with Approved Charters 10,526,900
15 Capital Projects in Conceptual Design
16 . Intra-Day Offers 6,000,000
17 . 2014 Issue Resolution Project 1,500,000
18 . FCM Performance Incentives (FCA 9) 1,000,000
19 . Business Intelligence Phase IV 750,000
20 . Third Party Financial Transmission Rights (FTR) Administration 600,000
21 . Cyber Security 550,000
22 . Quarterly Release Projects 2014 500,000
23 . Business Continuity Plan Infrastructure Enhancements Phase III 500,000
24 . Wind Integration Phase II 300,000
25 . Other Emerging Work including Strategic Planning Initiatives 1,573,100
26 Subtotal Conceptual Design 13,273,100
27 . Non-Project Capital Expenditures 3,700,000
28 . Capitalized Interest and loan fees 500,000
29 TOTAL Capital Projects (including Capitalized Interest) 28,000,000 $
(MW) (GWH) (MW) (GWH)
(a) (b) (c) (d) (e) (f) (g) (h)
1 Aug-00 21,736 11,173 Actual 21,736 11,173 Actual
2 Sep-00 21,369 10,068 Actual 21,369 10,068 Actual
3 Oct-00 18,021 9,989 Actual 18,021 9,989 Actual
4 Nov-00 18,642 10,051 Actual 18,642 10,051 Actual
5 Dec-00 20,088 11,572 Actual 20,088 11,572 Actual
6 J an-01 19,833 11,466 Actual 19,833 11,466 Actual
7 Feb-01 19,357 10,058 Actual 19,357 10,058 Actual
8 Mar-01 18,622 10,719 Actual 18,622 10,719 Actual
9 Apr-01 16,854 9,425 Actual 16,854 9,425 Actual
10 May-01 18,904 9,818 Actual 18,904 9,818 Actual
11 J un-01 22,358 10,873 Actual 22,358 10,873 Actual
12 J ul-01 23,952 10,936 Actual 23,952 10,936 Actual
Line No.
From CELT Report (As Published) From Monthly Market Reports
Month
Monthly
Peak Load
Monthly
Net
Data
Source
Monthly
Peak Load
Monthly Net
Energy
Data Source
Development of Escalation Factors
Exhibit 3
RCL-7
Schedule 1
FERC DOCKET NO. ER14- -000
(a) (b) (c) (d) (e) (f) (g) (h)
Line No.
Month
Monthly
Peak Load
Monthly
Net
Data
Source
Monthly
Peak Load
Monthly Net
Energy
Data Source
(a) (b) (c) (d) (e) (f) (g) (h)
Line No.
Month
Monthly
Peak Load
Monthly
Net
Data
Source
Monthly
Peak Load
Monthly Net
Energy
Data Source
(a) (b) (c) (d) (e) (f) (g) (h)
Line No.
Month
Monthly
Peak Load
Monthly
Net
Data
Source
Monthly
Peak Load
Monthly Net
Energy
Data Source
152 Mar-13 19,980 11,286 Forecast 18,460 10,588 Actual
153 Apr-13 17,750 10,067 Forecast 16,762 9,419 Actual
154 May-13 19,740 10,562 Forecast 22,457 9,822 Actual
155 J un-13 24,915 11,579 Forecast 25,113 10,933 Actual
156 J ul-13 27,840 13,335 Forecast 27,360 13,634 Actual
157 Aug-13 27,840 13,053 Forecast 27,840 13,053 Forecast
158 Sep-13 22,925 10,918 Forecast 22,925 10,918 Forecast
159 Oct-13 18,375 10,527 Forecast 18,375 10,527 Forecast
160 Nov-13 19,745 10,551 Forecast 19,745 10,551 Forecast
161 Dec-13 22,445 12,021 Forecast 22,445 12,021 Forecast
162 J an-14 22,445 12,478 Forecast 22,445 12,478 Forecast
163 Feb-14 21,580 10,982 Forecast 21,580 10,982 Forecast
164 Mar-14 20,145 11,440 Forecast 20,145 11,440 Forecast
165 Apr-14 17,885 10,205 Forecast 17,885 10,205 Forecast
166 May-14 19,930 10,706 Forecast 19,930 10,706 Forecast
167 J un-14 25,245 11,737 Forecast 25,245 11,737 Forecast
168 J ul-14 28,290 13,517 Forecast 28,290 13,517 Forecast
169 Aug-14 28,290 13,231 Forecast 28,290 13,231 Forecast
170 Sep-14 23,200 11,067 Forecast 23,200 11,067 Forecast
171 Oct-14 18,515 10,671 Forecast 18,515 10,671 Forecast
172 Nov-14 19,910 10,695 Forecast 19,910 10,695 Forecast
173 Dec-14 22,630 12,185 Forecast 22,630 12,185 Forecast
1
2 Average Total Average Total
3 2001 20,056 125,976 20,056 125,976
4 2002 20,667 127,455 20,667 127,455
5 2003 20,587 130,776 20,587 130,776
6 2004 20,736 132,517 20,736 132,515
7 2005 21,375 136,355 21,378 136,356
8 2006 21,129 132,087 21,130 132,087
9 2007 21,781 134,468 21,792 134,468
10 2008 20,736 131,743 20,736 131,754
11 2009 19,743 126,842 19,743 126,839
12 2010 21,386 130,770 21,386 130,771
13 2011 20,450 129,162 20,450 129,162
14 2012 20,438 128,072 20,439 128,082
Annualized Figures
(a) (b) (c) (d) (e) (f) (g) (h)
Line No.
Month
Monthly
Peak Load
Monthly
Net
Data
Source
Monthly
Peak Load
Monthly Net
Energy
Data Source
15 2013 21,816 135,614 21,819 133,189
16 2014 22,339 138,914 22,339 138,914
17
18 2002 1.0304 1.0117 1.0304 1.0117
19 2003 0.9961 1.0261 0.9961 1.0261
20 2004 1.0072 1.0133 1.0072 1.0133
21 2005 1.0308 1.0290 1.0309 1.0290
22 2006 0.9885 0.9687 0.9884 0.9687
23 2007 1.0309 1.0180 1.0314 1.0180
24 2008 0.9520 0.9797 0.9515 0.9798
25 2009 0.9521 0.9628 0.9521 0.9627
26 2010 1.0832 1.0310 1.0832 1.0310
27 2011 0.9562 0.9877 0.9562 0.9877
28 2012 0.9994 0.9916 0.9995 0.9916
29 2013 1.0674 1.0589 1.0675 1.0399
30 2014 1.0240 1.0243 1.0238 1.0430
31 1.009 1.008 NOT USED
32
33 Average Total Average Total
34 Dec-00 19,971 52,852 19,971 52,853 Actual
35 Dec-01 20,159 52,681 20,159 52,681 Actual
36 Dec-02 21,341 54,554 21,341 54,555 Actual
37 Dec-03 20,299 54,844 20,299 54,843 Actual
38 Dec-04 20,877 55,469 20,877 55,469 Actual
39 Dec-05 21,688 57,593 21,696 57,594 Actual
40 Dec-06 20,996 54,499 20,995 54,500 Actual
41 Dec-07 21,669 56,412 21,694 56,412 Actual
42 Dec-08 20,492 54,050 20,494 54,055 Actual
43 Dec-09 19,870 53,722 19,870 53,721 Actual
44 Dec-10 21,745 54,548 21,745 54,548 Actual
45 Dec-11 19,621 53,120 19,621 53,120 Actual
46 Dec-12 20,156 53,725 20,159 53,735 Actual
47 Dec-13 22,266 57,070 22,266 57,070 Forecast
48
49 Dec-01 1.0094 0.9967 Actual
50 Dec-02 1.0586 1.0356 Actual
51 Dec-03 0.9512 1.0053 Actual
52 Dec-04 1.0285 1.0114 Actual
53 Dec-05 1.0392 1.0383 Actual
54 Dec-06 0.9677 0.9463 Actual
55 Dec-07 1.0333 1.0351 Actual
56 Dec-08 0.9446 0.9582 Actual
57 Dec-09 0.9696 0.9938 Actual
58 Dec-10 1.0944 1.0154 Actual
59 Dec-11 0.9023 0.9738 Actual
60 Dec-12 1.0274 1.0116 Actual
61 Dec-13 1.1045 1.0621 Forecast
62 1.010 1.006 NOT USED
Annual Escalation
Last Five Months of Calendar Year
Escalation Used for Last Five Months of Calendar Year
Schedule 2
Schedule 1
Network Load Volumes
(kW) Energy TUs
Submitted
Virtual Energy
Cleared Virtual
Energy
Submitted FTR
Bids
Cleared
FTR Bids
(GWH)
(a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k)
1 J an-13 Actual 20,516,961 1,379,716 219,359 21,989 60,509 14,807 24,032,719 22,343,854 458,904
2 Feb-13 Actual 19,131,345 1,259,732 198,881 20,507 25,569 8,490 20,995,649 21,195,456 225,155
3 Mar-13 Actual 18,134,481 1,364,713 218,851 18,154 31,191 9,931 22,108,714 19,970,334 434,554
4 Apr-13 Actual 16,472,613 1,282,913 197,810 24,066 30,885 9,490 19,881,017 18,883,788 472,377
5 May-13 Actual 22,077,666 1,373,080 320,274 24,189 25,885 8,550 20,645,950 24,299,379 453,384
6 J un-13 Actual 24,718,639 1,404,103 165,421 22,973 28,935 9,020 22,967,556 26,906,380 522,035
7 J ul-13 Actual 27,037,120 1,465,640 170,468 23,001 30,801 9,142 28,491,737 29,468,961 502,420
8 Aug-13 Est. 24,417,421 a 1,401,678 a 237,702 a 22,455 a 17,459 a 4,914 a 26,862,634 a 26,492,846 a 593,208 a
9 Sep-13 Est. 21,176,831 a 1,337,862 a 263,384 a 28,914 a 20,233 a 5,896 a 21,761,600 a 23,227,584 a 676,921 a
10 Oct-13 Est. 16,501,002 a 1,335,119 a 267,141 a 25,120 a 20,521 a 6,051 a 20,587,023 a 18,970,370 a 504,563 a
11 Nov-13 Est. 18,554,100 a 1,277,896 a 237,524 a 25,150 a 19,484 a 6,373 a 20,918,355 a 20,448,687 a 322,514 a
12 Dec-13 Est. 18,820,420 a 1,364,206 a 263,659 a 22,619 a 19,703 a 6,663 a 22,881,936 a 21,055,753 a 413,312 a
13 Totals 247,558,599 16,246,658 2,760,474 279,137 331,175 99,327 272,134,892 273,263,392 5,579,347
14
15
16 J an-14 Est. 20,804,198 b 1,379,716 a 219,359 a 21,989 a 60,509 a 14,807 a 24,369,178 b 22,656,668 b 458,904 a
17 Feb-14 Est. 19,399,184 b 1,259,732 a 198,881 a 20,507 a 25,569 a 8,490 a 21,289,588 b 21,492,192 b 225,155 a
18 Mar-14 Est. 18,388,364 b 1,364,713 a 218,851 a 18,154 a 31,191 a 9,931 a 22,418,236 b 20,249,919 b 434,554 a
19 Apr-14 Est. 16,703,230 b 1,282,913 a 197,810 a 24,066 a 30,885 a 9,490 a 20,159,352 b 19,148,161 b 472,377 a
20 May-14 Est. 22,386,753 b 1,373,080 a 320,274 a 24,189 a 25,885 a 8,550 a 20,934,994 b 24,639,570 b 453,384 a
21 J un-14 Est. 25,064,700 b 1,404,103 a 165,421 a 22,973 a 28,935 a 9,020 a 23,289,101 b 27,283,069 b 522,035 a
22 J ul-14 Est. 27,415,640 b 1,465,640 a 170,468 a 23,001 a 30,801 a 9,142 a 28,890,622 b 29,881,526 b 502,420 a
23 Aug-14 Est. 24,759,265 b 1,401,678 a 237,702 a 22,455 a 17,459 a 4,914 a 27,238,711 b 26,863,746 b 593,208 a
24 Sep-14 Est. 21,473,307 b 1,337,862 a 263,384 a 28,914 a 20,233 a 5,896 a 22,066,262 b 23,552,770 b 676,921 a
25 Oct-14 Est. 16,732,016 b 1,335,119 a 267,141 a 25,120 a 20,521 a 6,051 a 20,875,242 b 19,235,955 b 504,563 a
26 Nov-14 Est. 18,813,857 b 1,277,896 a 237,524 a 25,150 a 19,484 a 6,373 a 21,211,212 b 20,734,969 b 322,514 a
27 Dec-14 Est. 19,083,906 b 1,364,206 a 263,659 a 22,619 a 19,703 a 6,663 a 23,202,283 b 21,350,534 b 413,312 a
28 Total 251,024,419 16,246,658 2,760,474 279,137 331,175 99,327 275,944,781 277,089,079 5,579,347
a 1.00
b 1.014
Billing Determinants for Calendar Year 2013 and Test Year 2014
Exhibit 3
RCL-7
CALENDAR YEAR 2013
TEST YEAR 2014
Escalation Factors
TEST YEAR 2014
Schedule 2 Schedule 3
Line
No.
Month
Data
Source
Transaction Units (TUs)
Financial Transmission Rights
(FTRs)
Peak Volumes
Electrical Load
(kW)
Export Volumes
(MWh)
Total
(a) (b) (d) (e) (f) (g)
(d) x (e)
1 Schedule 1 39,261,072 $
2 Network Total 251,024,419 0.15640 $ /kW-mo. 39,261,072 $
3 Through or Out Service 0.00021 $ /kW-hour
4
5 Schedule 2 80,623,593 $
6 Transaction Units 12,093,539 $ 15.00%
7 INC Offers/DEC Bids 30,551 $
8 Submitted 2,760,474 0.00500 $ /Offer or Bid 13,802 $
9 Cleared 279,137 0.06000 $ /Offer or Bid 16,748 $
10 Total 3,039,611 30,551 $
11 Financial Transmission Rights 585,288 $
12 Submitted FTR Bids 409,702 $ 70% 331,175 1.23712 $ /Bid 409,702 $
13 Cleared FTR Bids 175,586 $ 30% 99,327 1.76776 $ /Bid 175,586 $
14 Total 430,502 585,288 $
15
16 Energy TUs 11,477,700 $
17 Block 1 First 12,500 11,590,346 0.73167 $ /TU-hour 8,480,308 $
18 Block 2 Next 27,000 3,156,284 0.66515 $ /TU-hour 2,099,417 $
19 Block 3 Over 39,500 1,500,028 0.59864 $ /TU-hour 897,975 $
20 Total 16,246,658 11,477,700 $
21
22 Volumetric Measures 68,530,054 $ 85.00%
23 Block 1 First 250,000 136,701,755 0.26149 $ /mWh 35,746,508 $
24 Block 2 Next 1,250,000 125,891,566 0.23772 $ /mWh 29,927,021 $
25 Block 3 Over 1,500,000 13,351,460 0.21395 $ /mWh 2,856,526 $
26 Total 275,944,781 68,530,054 $
27
28 Total 80,623,593 $
29
30 Schedule 3 51,357,285 $
31 RT NCP Load Obligation 49,292,927 $ Total 277,089,079 0.17790 $ /kW-mo. 49,292,927 $
32 Exports 2,064,358 $ Total 5,579,347 0.37000 $ /mWh 2,064,358 $
33 51,357,285 $
34
35 Totals 171,241,950 $ 171,241,950 $
Rate Design Summary
Exhibit 3
RCL-7
Schedule 3
(c)
TEST YEAR 2014
Revenue
Requirement for
Test Year 2014
Billing Units
Proposed Rates Calculated Revenue Line
No.
Tariff Schedule
Blocks
Total $ %
(a) (c) (d) (e) (f) (g) (h) (i) (j) (k)
(c) x (d) (i) - (f) (j) / (f)
1 Schedule 1
2 Network Total 251,024,419 $0.16545 /kW-mo. 41,531,990 $ 0.15640 $ /kW-mo. 39,261,072 $ (2,270,918) $ -5.47%
3
4 Schedule 2
5 Transaction Units
6 INC Offers/DEC Bids
7 Submitted 2,760,474 $0.00500 /Offer or Bid 13,802 $ 0.00500 $ /Offer or Bid 13,802 $
8 Cleared 279,137 $0.06000 /Offer or Bid 16,748 $ 0.06000 $ /Offer or Bid 16,748 $
9 Total 3,039,611 30,551 $ 30,551 $
10 Financial Transmission Rights
11 Submitted FTR Bids 331,175 $1.12347 /Bid 372,065 $ 1.23712 $ /Bid 409,702 $
12 Cleared FTR Bids 99,327 $1.49385 /Bid 148,380 $ 1.76776 $ /Bid 175,586 $
13 Total 430,502 520,445 $ 585,288 $
14
15 Energy Transaction Units
16 Block 1 First 12,500 11,590,346 $0.71278 /TU-hour 8,261,367 $ 0.73167 $ /TU-hour 8,480,308 $
17 Block 2 Next 27,000 3,156,284 $0.64798 /TU-hour 2,045,209 $ 0.66515 $ /TU-hour 2,099,417 $
18 Block 3 Over 39,500 1,500,028 $0.58318 /TU-hour 874,786 $ 0.59864 $ /TU-hour 897,975 $
19 Total 16,246,658 11,181,362 $ 11,477,700 $
20 Volumetric Measures
21 Block 1 First 250,000 136,701,755 $0.24570 /mWh 33,587,621 $ 0.26149 $ /mWh 35,746,508 $
22 Block 2 Next 1,250,000 125,891,566 $0.22337 /mWh 28,120,399 $ 0.23772 $ /mWh 29,927,021 $
23 Block 3 Over 1,500,000 13,351,460 $0.20103 /mWh 2,684,044 $ 0.21395 $ /mWh 2,856,526 $
24 Total 275,944,781 64,392,064 $ 68,530,054 $
25
26 Total 76,124,422 $ 80,623,593 $ 4,499,171 $ 5.91%
27 Schedule 3
28 RT NCP Load Obligation Total 277,089,079 $0.17445 /kW-mo. 48,338,190 $ 0.17790 $ /kW-mo. 49,292,927 $
29 Exports Total 5,579,347 $0.36000 /mWh 2,008,565 $ 0.37000 $ /mWh 2,064,358 $
30 50,346,755 $ 51,357,285 $ 1,010,530 $ 2.01%
31
32 Totals 168,003,167 $ 171,241,950 $ 3,238,783 $ 1.93%
Blocks
Annual Revenue Comparison at Present and Proposed Rates
Exhibit 3
RCL-7
Schedule 4
(b)
TEST YEAR 2014
Line
No.
Tariff Schedule
2014 Billing Units
Annual Revenue Analysis
Change 2013 Approved Rates 2014 Proposed Rates
Effective Rates Calculated Revenue Proposed Rates Total Revenue (1)
First Next Over First Next Over
12,500 27,000 39,500 12,500 27,000 39,500
(a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k)
1 J an-12 J an-11 1,331,643 946,094 276,234 109,315 Actual 1,324,495 933,192 279,121 112,182
2 Feb-12 Feb-11 1,199,694 882,076 237,107 80,511 Actual 1,255,618 887,973 268,040 99,605
3 Mar-12 Mar-11 1,266,401 908,034 266,694 91,673 Actual 1,320,775 930,247 283,230 107,298
4 Apr-12 Apr-11 1,240,815 891,002 259,679 90,134 Actual 1,231,865 882,813 264,393 84,659
5 May-12 May-11 1,275,800 903,348 272,730 99,722 Actual 1,356,646 921,307 312,930 122,409
6 J un-12 J un-11 1,283,571 904,467 274,336 104,768 Actual 1,378,552 950,766 309,706 118,080
7 J ul-12 J ul-11 1,346,388 942,352 290,485 113,551 Actual 1,389,761 979,540 290,906 119,315
8 Aug-12 Aug-11 1,349,326 941,233 290,237 117,856 Actual 1,401,678 993,932 296,607 111,139
9 Sep-12 Sep-10 1,267,435 901,125 266,880 99,430 Actual 1,337,862 964,365 272,755 100,742
10 Oct-12 Oct-10 1,271,379 903,929 267,711 99,739 Actual 1,335,119 963,149 263,864 108,106
11 Nov-12 Nov-10 1,259,097 895,197 265,124 98,775 Actual 1,277,896 927,796 256,048 94,052
12 Dec-12 Dec-10 1,351,443 960,854 284,569 106,020 Actual 1,364,206 964,967 279,330 119,909
13 Totals 15,442,992 10,979,711 3,251,787 1,211,494 15,974,473 11,300,047 3,376,930 1,297,496
14
15 Totals 15,442,992 15,974,473
16
17 0.62274 $ 0.56612 $ 0.50951 $ 0.62274 $ 0.56612 $ 0.50951 $
18
19
20 J an-12 J an-11 801,249 $ 589,171 $ 156,382 $ 55,697 $ Actual 796,310 $ 581,136 $ 158,016 $ 57,158 $
21 Feb-12 Feb-11 724,556 $ 549,304 $ 134,231 $ 41,021 $ Actual 755,469 $ 552,976 $ 151,743 $ 50,750 $
22 Mar-12 Mar-11 763,158 $ 565,469 $ 150,981 $ 46,708 $ Actual 794,314 $ 579,302 $ 160,342 $ 54,669 $
23 Apr-12 Apr-11 747,796 $ 554,863 $ 147,009 $ 45,924 $ Actual 742,576 $ 549,763 $ 149,678 $ 43,135 $
24 May-12 May-11 767,758 $ 562,551 $ 154,398 $ 50,809 $ Actual 813,259 $ 573,735 $ 177,156 $ 62,369 $
25 J un-12 J un-11 771,935 $ 563,248 $ 155,307 $ 53,380 $ Actual 827,574 $ 592,080 $ 175,331 $ 60,163 $
26 J ul-12 J ul-11 809,145 $ 586,840 $ 164,449 $ 57,855 $ Actual 835,479 $ 609,999 $ 164,688 $ 60,792 $
27 Aug-12 Aug-11 810,501 $ 586,143 $ 164,309 $ 60,049 $ Actual 843,503 $ 618,961 $ 167,915 $ 56,626 $
28 Sep-12 Sep-10 762,913 $ 561,167 $ 151,086 $ 50,660 $ Actual 806,290 $ 600,549 $ 154,412 $ 51,329 $
29 Oct-12 Oct-10 765,287 $ 562,913 $ 151,556 $ 50,818 $ Actual 804,251 $ 599,791 $ 149,379 $ 55,081 $
30 Nov-12 Nov-10 757,894 $ 557,475 $ 150,092 $ 50,327 $ Actual 770,650 $ 577,776 $ 144,954 $ 47,920 $
31 Dec-12 Dec-10 813,481 $ 598,362 $ 161,100 $ 54,018 $ Actual 820,153 $ 600,924 $ 158,134 $ 61,095 $
32 Totals 9,295,675 $ 6,837,505 $ 1,840,902 $ 617,268 $ 9,609,826 $ 7,036,991 $ 1,911,748 $ 661,087 $
33
34 $ 9,295,675 $ 9,609,826
35 Total Rate ($) Total Rate ($)
36 Submitted Virtual Energy Bids/Offers TUs 3,610,207 $0.00500 18,051 3,043,680 $0.00500 15,218
37 Cleared Virtual Energy Bids/Offers TUs 512,368 $0.06000 30,742 326,387 $0.06000 19,583
38 48,793 $ 34,802 $
39 Total Rate ($) Total Rate ($)
40 Submitted FTR Bid TUs 473,772 0.68241 323,308 303,303 0.68241 206,977
41 Cleared FTR Bid TUs 126,313 1.09696 138,560 96,173 1.09696 105,498
42 461,868 $ 312,475 $
43
44 $ 9,806,336 $ 9,957,103
45 Final True-Up - Over (Under) Recovery For Jan - Dec 2012 150,766 $
Comparison of Schedule 2 Revenues from Transaction Units (TUs) for 2012
Exhibit 3
RCL-7
Schedule 5
TEST YEAR 2014
Comparison Of Monthly TU Data For CY 2012
TUs Per 2012 ISO Tariff Filing for TY 2012 Actual 2012 TUs
Line
No.
Month
Source For TY
2012
Total TUs
Source For
TY 2012
Total TUs
Billing Determinants - Energy TUs
2012 Approved Rates for Schedule 2
Initial Estimate of Revenue FromEnergy TUs
Total Energy TU- Revenue
Total Schedule 2 TU- Revenue
Exhibit 3
RCL-7
Schedule 6
Total Schedule 2 TU
Revenues % TU Difference
1
2 Final 2012 True-Up
3 2012 Final TU Collections 9,957,103 $
4 2011 Projected TU Collections in TY 2012 Filing 9,806,336 $
5 Final Schedule 2 TU Over/(Under) Collection 150,766 $ 1.54%
6
7
8 Initial Allocation to Volumetric 50% N/A - Over Collected
9 2012 Final True-Up (as calculated above)
10 Total Projected Undercollection to Vol. Meas.
11
12
13 Total TUs VMs
14 Schedule 2 Allocation before True-up 80,623,593 $ 12,093,539 $ 68,530,054 $
15
Allocated TU Under-recovery
- $ - $ - $
16 Total Revenue Requirement After True-Up 80,623,593 $ 12,093,539 $ 68,530,054 $
17
% Allocation
100.00% 15.00% 85.00%
Allocated to
Schedule 2 TU True-Up Summary
TEST YEAR 2014
Line
No.
Exhibit 3
RCL-8

NEW ENGLAND POWER POOL
PARTICIPANTS COMMITTEE MEETING

October 4, 2013

RESOLUTION REGARDING THE ISO 2014 BUDGET

RESOLVED, that the Participants Committee supports the Year 2014
operating budget and capital budget proposed by the ISO, as presented at
this meeting.

Testimony of ISO New England On Its 2014 Budget Proposal

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Testimony of ISO New England On Its 2014 Budget Proposal

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Exhibit 3

ISO New England Inc. Exhibit 3

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