Christopher J. Novak

Senior Counsel

 

 

 

CRITICAL ENERGY/ELECTRIC INFRASTRUCTURE INFORMATION
TREATMENT OF ATTACHMENT REQUESTED

PURSUANT TO 18 C.F.R. §§ 388.112-113

October 4, 2019

 

 

 

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 Engineering & Procurement Agreement with
Invenergy Wind Development LLC and Requests for
CEII Treatment and Waiver of Notice Requirement

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 an
Engineering & Procurement Agreement (“E&P Agreement”) between Niagara Mohawk
and Invenergy Wind Development LLC (“Invenergy”).3  The E&P Agreement is
designated as Service Agreement No. 2477 under the New York Independent System
Operator, Inc.’s (“NYISO”) Open Access Transmission Tariff (“OATT”).

 

The E&P Agreement is an undisputed agreement to facilitate the performance of
certain work that Invenergy has requested Niagara Mohawk to do to accommodate
Invenergy’s proposed interconnection of a generating facility to Niagara Mohawk
transmission facilities.  Niagara Mohawk respectfully requests treatment of an exhibit to
the E&P Agreement as Critical Energy/Electric Infrastructure Information (“CEII”).
Niagara Mohawk also requests that the Commission waive its notice requirement to


 

 

 

 

 

1

 

2

 

3


 

 

16 U.S.C. § 824d.

18 C.F.R. Part 35.
Together, Niagara Mohawk and Invenergy are referred to in the E&P 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 October 4, 2019

Page 2

 

accept the E&P Agreement effective as of August 12, 2019, 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.

 

Invenergy is a Delaware limited liability company having an office and place of business in Chicago, Illinois.

Invenergy is proposing to interconnect its 339.78 MW Alle Catt II Wind Project
to Niagara Mohawk’s 345 kV Stolle Rd. - Five Mile Line 29 (the Interconnection
Project).  Invenergy and Niagara Mohawk contemplate negotiation of a Large Generator
Interconnection Agreement (“LGIA”) in connection with the proposed Interconnection
Project.

 

Consistent with the NYISO OATT, the Parties have entered into the E&P

Agreement to facilitate Niagara Mohawk’s performance of certain engineering and
procurement work for certain long-lead items in connection with the Interconnection
Project prior to the Parties entering into the LGIA.4  Niagara Mohawk is willing to
perform this work subject to:  (i) reimbursement by Invenergy of all actual costs and
expenses incurred by Niagara Mohawk in connection with the work; (ii) Invenergy’s
performance of all other duties, responsibilities, and obligations set forth in the E&P

Agreement, including, without limitation, specified actions to be taken by Invenergy; and (iii) receipt of any and all required approvals as set forth in the E&P Agreement, in a form acceptable to Niagara Mohawk.5

 

II. Description of the E&P Agreement and Filing Requirements

Pursuant to the E&P Agreement, Invenergy will reimburse Niagara Mohawk for
the actual costs and expenses incurred in connection with the work described above.  The E&P Agreement sets forth the terms and conditions of this work and certain related
commitments by Invenergy.  The E&P 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 agreements.


 

 

 

 

 

 

4


 

 

Section 30.9 of Attachment X to the NYISO OATT states that prior to executing a Standard Large


Generator Interconnection Agreement, a Developer (in this case, Invenergy) may, in order to advance the implementation of its interconnection, request and Connecting Transmission Owner (in this case, Niagara Mohawk) shall offer the Developer, an engineering and procurement agreement that authorizes the
Connecting Transmission Owner to begin engineering and procurement of long lead-time items necessary for the establishment of the interconnection.


 

5


E&P Agreement, Recitals, Sections 3.0, 7.0, and 18.0, and Exhibits A and B.


 

 

The Honorable Kimberly D. Bose October 4, 2019

Page 3

 

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 E&P Agreement relates to Niagara Mohawk’s recovery of costs for performing
procurement and other work in connection with the Interconnection Project.  Niagara Mohawk recognizes that the Commission may find the E&P Agreement to be a
jurisdictional agreement that must be filed.  For these reasons, Niagara Mohawk is filing the E&P Agreement for Commission acceptance.

 

The price of the work to be performed pursuant to the E&P Agreement will be

just and reasonable because Niagara Mohawk will perform the work at actual cost.7  The Commission should therefore accept the E&P Agreement.

 

III.Request for CEII Treatment

Pursuant to Sections 388.112 and 388.113 of the Commission’s regulations,8

Niagara Mohawk respectfully requests treatment of Exhibit A-1 to the E&P Agreement
as CEII.  This Exhibit A-1 consists of a document entitled “Class Year 19 Facilities
Study-Part 1 Report for the 339.78 MW Alle Catt II Wind Project”.  Exhibit A-1 contains sensitive infrastructure information that should not be publicly released.  Niagara
Mohawk further requests that the CEII designation remain in effect for at least five years from the date of this filing.

For these reasons, in the public version of the Agreement, as reflected in the filed
tariff record, Exhibit A-1 has been omitted.  The non-public version of Exhibit A-1 has
been marked “CUI/CEII - Contains Critical Energy/Electric Infrastructure
Information - Do Not Release”.  The non-public version of Exhibit A-1 is being filed as
a CEII attachment to this filing, designated as Attachment B.  Consistent with the
Commission’s regulations, Attachment C to this filing includes a proposed form of
protective agreement.

 

IV. Effective Date and Request for Waiver

Niagara Mohawk respectfully requests that the Commission accept the E&P

Agreement effective as of August 12, 2019, the effective date agreed to by the Parties. Pursuant to Section 35.11 of the Commission’s regulations,9 Niagara Mohawk requests that the Commission grant waiver of the notice requirement set forth in Section 35.3(a)(2) of its regulations,10 to permit the requested effective date.


 

 

 

 

 

 

6

 

7

 

8

 

9

 

10


 

 

 

16 U.S.C. §§ 824d(a)-(c).

See E&P Agreement, Article 1.0, at definition of “Company Reimbursable Costs”.

18 C.F.R. §§ 385.112-113.

18 C.F.R. § 35.11.

18 C.F.R. § 35.3(a)(2).


 

 

The Honorable Kimberly D. Bose October 4, 2019

Page 4

 

Good cause exists for the Commission to grant this waiver.  Granting the waiver
will accord with the intent of the Parties to make the E&P Agreement effective as of
August 12, 2019, pursuant to the provisions of the agreement.  Therefore, no prejudice
will result to any party from granting the waiver.  For these reasons, the Commission
should find that good cause exists to grant the requested August 12 effective date.

 

V.List of Filing Documents

1.This transmittal letter;

2.Attachment A:  Public version of the E&P Agreement

3.Attachment B: Non-public version of Exhibit A-1 to the E&P Agreement,

which contains CEII

4.Attachment C: Proposed form of protective agreement

 

VI.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 A. 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@nationalgrid.com

 

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


 

 

The Honorable Kimberly D. Bose October 4, 2019

Page 5

 

VII.    Conclusion

For the reasons stated herein, Niagara Mohawk respectfully requests that the Commission accept the E&P Agreement effective as of August 12, 2019.

 

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