Christopher J. Novak
Senior Counsel
November 1, 2018
The Honorable Kimberly D. Bose Secretary
Federal Energy Regulatory Commission 888 First Street, NE
Washington, DC 20426
Re: Niagara Mohawk Power Corporation
Docket No. ER19-____-000
Filing of Cost Reimbursement Agreement with
Mid-Atlantic Interstate Transmission, LLC
Dear Secretary Bose:
Pursuant to Section 205 of the Federal Power Act (“FPA”),1 and Part 35 of the
Federal Energy Regulatory Commission’s (“Commission”) regulations,2 Niagara
Mohawk Power Corporation d/b/a National Grid (“Niagara Mohawk”) submits a Cost
Reimbursement Agreement (“Reimbursement Agreement”) between Niagara Mohawk
and Mid-Atlantic Interstate Transmission, LLC (“MAIT”).3 The Reimbursement
Agreement is designated as Service Agreement No. 2437 under the New York
Independent System Operator, Inc.’s (“NYISO”) Open Access Transmission Tariff
(“OATT”).
The Reimbursement Agreement is an undisputed agreement to facilitate the
performance of certain work and services that MAIT has requested Niagara Mohawk to do to support MAIT’s operational needs in connection with MAIT’s planned projects to reconfigure its Erie East Substation and to install a series reactor at that substation.
Niagara Mohawk requests that the Commission accept the Reimbursement Agreement effective as of October 2, 2018, the effective date agreed to by the Parties.
I.Background
Niagara Mohawk is a public utility subject to the Commission’s jurisdiction that
owns transmission facilities located in New York which have been placed under the
operational control of the NYISO.
1
2
3
16 U.S.C. § 824d.
18 C.F.R. Part 35.
Together, Niagara Mohawk and MAIT are referred to in the Reimbursement Agreement and in
this transmittal letter as the “Parties.”
40 Sylvan Road, Waltham, MA 02451
T: 781-907-3704 F: 781-296-8092 Chris.Novak@nationalgrid.com www.nationalgrid.com
The Honorable Kimberly D. Bose November 1, 2018
Page 2
MAIT is a public utility subject to the Commission’s jurisdiction that owns transmission facilities located in Pennsylvania which have been placed under the functional control of PJM Interconnection, L.L.C. (“PJM”).
MAIT has requested that Niagara Mohawk perform certain work and services, as
described in Exhibit A-1 to the Reimbursement Agreement, to support MAIT’s
operational needs for: (1) the Customer (i.e., MAIT) Substation Reconfiguration Project,
which is MAIT’s planned project to reconfigure its Erie East Substation as depicted in
Exhibit A-2 to the Reimbursement Agreement; and (2) the Customer Erie East Series
Reactor Project, which is MAIT’s planned project to install a series reactor at the Erie
East Substation as depicted in Attachment A-3 to the Reimbursement Agreement.4
Niagara Mohawk is willing to perform this work and services, subject to (i)
reimbursement by MAIT of all costs and expenses incurred by Niagara Mohawk in
connection with the work and services; (ii) MAIT’s performance of all other duties,
responsibilities, and obligations set forth in the Reimbursement Agreement; and (iii)
receipt of any and all required approvals, in a form acceptable to Niagara Mohawk.5
II. Description of the Reimbursement Agreement and Filing Requirements
Pursuant to the Reimbursement Agreement, MAIT will reimburse Niagara
Mohawk for the actual costs and expenses incurred in connection with the work and
services described above. The Reimbursement Agreement sets forth the terms and
conditions of this work and services and certain related commitments by MAIT. The
Reimbursement Agreement includes provisions addressing the performance and schedule of the work and services, liability and indemnification, insurance, regulatory and
governmental approvals, and various other standard provisions included in comparable utility cost reimbursement agreements.
Section 205 of the FPA authorizes the Commission to require public utilities to
file all rates and charges that are “for or in connection with,” and all agreements that
“affect or relate to,” jurisdictional transmission service or sales of electric energy.6 The
Reimbursement Agreement relates to Niagara Mohawk’s recovery of costs for
performing procurement, construction, and other work and services in connection with
MAIT’s planned projects to reconfigure and to install a series reactor at its Erie East
Substation. Niagara Mohawk recognizes that the Commission may find the
Reimbursement Agreement to be a jurisdictional agreement that must be filed. For these
reasons, Niagara Mohawk is filing the Reimbursement Agreement for Commission
acceptance.
The price of the work and services to be performed pursuant to the
Reimbursement Agreement will be just and reasonable because Niagara Mohawk will
4
Reimbursement Agreement, Recitals, Article 1.0 and Exhibits A-1 through A-3. The Erie East
Substation is located in northwestern Pennsylvania near the border with New York.
5
6
Reimbursement Agreement, Recitals, Articles 3.0 and 7.0, and Exhibit A.
16 U.S.C. §§ 824d(a)-(c).
The Honorable Kimberly D. Bose November 1, 2018
Page 3
perform the work and services at actual cost.7 The Commission should therefore accept the Reimbursement Agreement.
III.Effective Date
Niagara Mohawk requests that the Commission accept the Reimbursement
Agreement effective as of October 2, 2018, the effective date agreed to by the Parties.
The Commission’s regulations require service agreements to be filed not more than 30
days after service under the agreements has commenced.8 Niagara Mohawk is filing the
Reimbursement Agreement 30 days after the requested October 2 effective date.
IV.Attachments
In addition to this transmittal letter, this filing includes the Reimbursement Agreement in Attachment A hereto.
7
See Reimbursement Agreement, Article 1.0 at definition of “Company Reimbursable Costs.”
Pursuant to Section 7.2 of the Reimbursement Agreement and the preliminary milestone schedule set forth in Exhibit B thereto, MAIT has provided Niagara Mohawk with a prepayment amount of $25,000 (the
“Initial Prepayment”), which represents Niagara Mohawk’s current estimate of the Company Reimbursable amounts to perform the work and services.
The Honorable Kimberly D. Bose November 1, 2018
Page 4
V.Communications and Service
Communications regarding this filing should be addressed to the following
individuals, whose names should be entered on the official service list maintained by the
Secretary for this proceeding:
Christopher J. NovakSean Atkins
Senior CounselBradley R. Miliauskas
National Grid USAAlston & Bird LLP
Service Company, Inc.The Atlantic Building
40 Sylvan Road950 F Street, NW
Waltham, MA 02451Washington, DC 20004
(781) 907-3704(202) 239-3300
Chris.Novak@nationalgrid.comsean.atkins@alston.com
bradley.miliauskas@alston.com
Kathryn Cox-Arslan
Director, Commercial Services National Grid USA
40 Sylvan Road
Waltham, MA 02451 (781) 907-2406
kathryn.cox-arslan@nationalgrid.com
Copies of this filing have been served on MAIT, the NYISO, and PJM.
VI.Conclusion
For the reasons stated herein, Niagara Mohawk respectfully requests that the
Commission accept the Reimbursement Agreement effective as of October 2, 2018.
Respectfully submitted,
/s/ Christopher J. Novak__
Christopher J. Novak Senior Counsel
National Grid USA
Service Company, Inc.
40 Sylvan Road
Waltham, MA 02451
Attorney for Niagara Mohawk Power Corporation
