Christopher J. Novak

Senior Counsel

March 20, 2020

The Honorable Kimberly D. Bose Secretary

Federal Energy Regulatory Commission 888 First Street, NE

Washington, DC 20426

Re: Niagara Mohawk Power Corporation
Docket No. ER20-____-000

Filing of Cost Reimbursement Agreement with Lake Placid Village, Inc.

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 Lake Placid Village, Inc. (“Lake Placid”).3 The Reimbursement Agreement is
designated as Service Agreement No. 2528 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 that Lake Placid has requested Niagara Mohawk to do to
accommodate Lake Placid’s planned westward expansion of an existing substation.
Niagara Mohawk requests that the Commission accept the Reimbursement Agreement
effective as of February 21, 2020, the effective date agreed to by the Parties.

16 U.S.C. § 824d.

18 C.F.R. Part 35.
Together, Niagara Mohawk and Lake Placid are referred to in the Reimbursement Agreement and

The Honorable Kimberly D. Bose March 20, 2020

Page 2

I.Background

Niagara Mohawk is a public utility subject to the Commission’s jurisdiction that own transmission facilities located in New York which have been placed under the operational control of the NYISO. Lake Placid is a municipal corporation with offices located in Lake Placid, New York.

Lake Placid is planning a westward expansion of its existing Lake Placid

Municipal Substation Number 1 (“Lake Placid Substation”) located in the Village of
Lake Placid and has requested that Niagara Mohawk perform certain work to
accommodate that expansion project. The requested work includes, without limitation,
reconfiguration of the portion of Niagara Mohawk’s 115 kV Lake Colby - Lake Placid
#3 transmission line located at Lake Placid Substation, and modification of Niagara
Mohawk’s transmission structure #1.5 at Lake Placid Substation to a dead end structure.
Niagara Mohawk is willing to perform this work subject to: (i) reimbursement by Lake
Placid of all actual costs and expenses incurred in connection with the work; (ii) Lake
Placid’s acquisition and delivery of certain real property interests as contemplated in the
Reimbursement Agreement; (iii) Lake Placid’s performance of all other duties,
responsibilities, and obligations set forth in the Reimbursement Agreement; and (iv)
receipt of any and all required approvals as set forth in the Reimbursement Agreement, in
a form acceptable to Niagara Mohawk.4

II. Description of the Reimbursement Agreement and Filing Requirements

Pursuant to the Reimbursement Agreement, Lake Placid will reimburse Niagara
Mohawk for the actual costs and expenses incurred in connection with the work
described above. The Reimbursement Agreement sets forth the terms and conditions of
this work and certain related commitments by Lake Placid. The Reimbursement
Agreement includes provisions addressing the performance and schedule of the work,
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.5 The
Reimbursement Agreement relates to Niagara Mohawk’s recovery of costs for
performing design, engineering, procurement, construction, testing, and other work on
transmission facilities as described in the Reimbursement Agreement, in connection with
the planned westward expansion of the Lake Placid 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
submitting the Reimbursement Agreement for Commission acceptance.

The Honorable Kimberly D. Bose March 20, 2020

Page 3

The price of the services to be performed pursuant to the Reimbursement

Agreement will be just and reasonable because Niagara Mohawk will perform these
services at actual cost.6 The Commission should therefore accept the Reimbursement
Agreement.

III.Effective Date

Niagara Mohawk requests that the Commission accept the Reimbursement

Agreement effective as of February 21, 2020, the effective date agreed to by the Parties.7
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
submitting this filing within 30 days of the requested February 21, 2020 effective date.

IV.Attachment

In addition to this transmittal letter, this filing includes the Reimbursement

Agreement that is provided in Attachment A hereto.

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. Novak Senior Counsel

National Grid USA
Service Company, Inc.

40 Sylvan Road

Waltham, MA 02451 (781) 907-2112

Chris.Novak@nationalgrid.com

Kevin C. Reardon

Director, Commercial Services National Grid USA

40 Sylvan Road

Waltham, MA 02451 (781) 907-2411

Kevin.Reardon@nationalgrid.com

6Id., Article 1.0 at definition of “Company Reimbursable Costs”.

7Id., Preamble and Article 1.0 at definition of “Effective Date”.

818 C.F.R. § 35.3(a)(2).

Sean A. Atkins

Bradley R. Miliauskas
Davis Wright Tremaine LLP
1919 Pennsylvania Ave., NW
Suite 800

Washington, DC 20006 (202) 973-4200

seanatkins@dwt.com
bradleymiliauskas@dwt.com

The Honorable Kimberly D. Bose March 20, 2020

Page 4

Copies of this filing have been served on Lake Placid, the NYISO, and the New York State Public Service Commission.

VI.Conclusion

For the reasons stated herein, Niagara Mohawk respectfully requests that the
Commission accept the Reimbursement Agreement effective as of February 21, 2020.

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