10 Krey Boulevard Rensselaer, NY  12144

 

 

December 1, 2016

 

By Electronic DeliveryContains Critical Energy

Honorable Kimberly D. Bose, SecretaryInfrastructure Information

Federal Energy Regulatory Commission 888 First Street, NE

Washington, DC 20426

 

Re:    Filing of an Executed Large Generator Interconnection Agreement Among the

New York Independent System Operator, Inc., Consolidated Edison Company of New York, Inc., and Cricket Valley Energy Center, LLC; Request for Waiver of the 60-Day Notice Period; Request for Critical Energy Infrastructure Information Designation; Docket No. ER17-____-000

Dear Ms. Bose:

Pursuant to Section 205 of the Federal Power Act1 and Section 35.12 of the

Commission’s regulations,2 the New York Independent System Operator, Inc. (“NYISO”) and Consolidated Edison Company of New York, Inc. (“Con Edison”) (together, the “Joint Filing Parties”) hereby tender for filing an executed Large Generator Interconnection Agreement
entered into by the NYISO, Con Edison, as the Connecting Transmission Owner, and Cricket Valley Energy Center, LLC (“Cricket Valley”), as the Developer (the “Interconnection
Agreement”).3  The Interconnection Agreement is labeled as Service Agreement No. 2310 under the NYISO’s Open Access Transmission Tariff (“OATT”).

The Joint Filing Parties respectfully request that the Commission accept the

Interconnection Agreement for filing.  With limited non-conforming exceptions, the justification
for which are described in Part I of this letter, the Interconnection Agreement conforms to the
NYISO’s pro forma Large Generator Interconnection Agreement (“Pro Forma LGIA”) that is
contained in Attachment X to the OATT.  Further, as described in Part III of this letter, the Joint
Filing Parties respectfully request a waiver of the Commission’s prior notice requirements4 to
make the Interconnection Agreement effective as of November 16, 2016, which is the date of its
execution.  Finally, as described in Part II of this letter, Con Edison requests that the one-line

diagrams included as Figures A-1 and A-2 in Appendix A of the Interconnection Agreement be protected from disclosure as Critical Energy Infrastructure Information.

 

1 16 U.S.C. § 824d (2016).

2 18 C.F.R. § 35.12 (2016).

3 Capitalized terms that are not otherwise defined in this filing letter shall have the meaning

specified in Attachments S or X of the NYISO OATT, and if not defined therein, in the NYISO OATT and NYISO Market Administration and Control Area Services Tariff.

4 See Prior Notice and Filing Requirements Under Part II of the Federal Power Act, 64 FERC ¶ 61,139, clarified, 65 FERC ¶ 61,081 (1993).


 

 

Honorable Kimberly D. Bose December 1, 2016

Page 2

I.Discussion

A.Background

Cricket Valley plans to construct a nominal 1,177 MW combined cycle, natural gas-fired generating facility that will be located in Dover, New York (“Facility”).  The Facility will consist of three sets of combined cycle units, each with one combustion turbine generator and one steam turbine generator.  Additional details regarding the Facility can be found in Appendix C of the
Interconnection Agreement.

The Facility will interconnect to certain transmission facilities of Con Edison that are part
of the New York State Transmission System.  The Point of Interconnection will be at a new 345
kV substation configured as a six breaker ring bus on Con Edison’s Line 398.  The Point of
Interconnection will specifically be located at the point at which each of the taps is made into the
main bus for the three generator leads (between breakers 1 and 2, breakers 3 and 4, and breakers

5 and 6).  Figure A-1 of Appendix A of the Interconnection Agreement provides a one-line diagram showing the Point of Interconnection.

B. The Interconnection Agreement Closely Conforms to the Pro Forma LGIA

Contained in Attachment X of the NYISO OATT

The Interconnection Agreement was executed on November 16, 2016, by the NYISO,

Con Edison, and Cricket Valley.  The Interconnection Agreement closely follows the language in the Pro Forma LGIA contained in Attachment X of the NYISO OATT.  However, the
Interconnection Agreement does contain limited variations from the Pro Forma LGIA that are
described in this Part I.B.  These variations are necessary because of the unique circumstances of Cricket Valley’s project.  The Joint Filing Parties submit that these changes specified below
satisfy the Commission’s standard for variations from the Pro Forma LGIA, because unique
circumstances exist that require a non-conforming agreement.5  Therefore, the Joint Filing
Parties respectfully request that the Commission accept the Interconnection Agreement with
these limited non-conforming changes.

 

1. Modifications to Address Execution of Interconnection Agreement
Prior to Completion of Class Year Study

Cricket Valley has elected to seek both Energy Resource Interconnection Service

(“ERIS”) and Capacity Resources Interconnection Service (“CRIS”).  Cricket Valley will

participate in the Class Year Study that commences after the completion of the current Class

Year Study.6  The Class Year Study identifies required System Upgrade Facilities for the reliable

 

5 See, e.g., PJM Interconnection, LLC, 111 FERC ¶ 61,163 at PP 10-11, reh’g denied, 112 FERC ¶ 61,282 (2005).

6 The current Class Year evaluations are completed, the final results of which were reviewed with stakeholders on November 8, 2016 and approved by the Operating Committee on December 1, 2016. The Initial Decision Period is expected to run through January 3, 2017.


 

 

Honorable Kimberly D. Bose December 1, 2016

Page 3

 

interconnection of all facilities in the Class Year and determines whether any System

Deliverability Upgrades are required for the Facility to be fully deliverable at its requested level of CRIS.

Since the Class Year Study in which Cricket Valley will participate had not commenced
at the time the parties executed the Interconnection Agreement, the parties modified Article 4.1.1
of the Interconnection Agreement to provide that the NYISO’s provision of ERIS and CRIS are
subject to the requirements in Section 6 of Appendix A and Section 2(c) of Appendix C.

 

Section 6 of Appendix A provides that Cricket Valley will accept its Project Cost

Allocation for any required System Upgrade Facilities identified in the Class Year Study and will
post the related Security or payments.  Section 6 of Appendix A further provides that if the
Connecting Transmission Owner’s Attachment Facilities, Stand Alone System Upgrade
Facilities, and Other System Upgrade Facilities identified in the Class Year Study differ in any
material way from the facilities described in the Interconnection Agreement, the parties will
amend the Interconnection Agreement to incorporate the results of the Class Year Study.
Finally, Section 2(c) of Appendix C provides that Cricket Valley may not supply Unforced
Capacity to the New York Control Area from the Facility until it has complied with the
deliverability requirements set forth in Attachment S of the OATT, including acceptance of any
cost allocation for System Deliverability Upgrades and the posting of associated security or
payments.

The Commission has previously accepted these types of changes to the Pro Forma LGIA where, as here, the parties agreed to execute the Interconnection Agreement prior to the
completion of the Class Year Study in which the Developer was participating.7

 

2.  Deviations Expressly Contemplated by the Pro Forma LGIA

Article 29.2 of the Pro Forma LGIA provides for discrepancies or conflicts between or
among terms and conditions of the cover agreement and its Appendices.  The language of this
article specifically provides that the terms and conditions of the cover agreement shall be given
precedence over the Appendices, “except as otherwise expressly agreed in writing by the
Parties.”  Exercising the rights afforded to them by this last clause, the parties added a provision
to this article expressly agreeing that the terms and conditions of the Appendices shall take
precedence over the provisions of the cover agreement in case of a discrepancy or conflict
between or among the terms and conditions of same.  The Commission has previously accepted
this change to the Pro Forma LGIA.8

 

 

7 See, e.g., New York Independent System Operator, Inc., Letter Order, Docket No. ER11-2199-
000 (December 28, 2010) (accepting revisions to CRIS requirements in Pro Forma LGIA to reflect the timing of the execution of the interconnection agreement).

8 See, e.g., New York Independent System Operator, Inc., Letter Order, Docket No. ER11-2199-
000 (December 28, 2010) (accepting revision to Article 29.2 to reflect precedence of the terms and
conditions in Appendices).


 

 

Honorable Kimberly D. Bose December 1, 2016

Page 4

 

3.  Deviations Required Due to Existence of Related Contractual Agreements

Con Edison and Cricket Valley are parties to a security agreement and will be parties to
property agreements described in Section 2(h) of Appendix C of the Interconnection Agreement
(“Additional Agreements”).  Accordingly, the parties have agreed to modify Article 29.6 to
address these Additional Agreements.  The Commission has previously accepted this change to
the Pro Forma LGIA.9  With respect to the interaction between the Interconnection Agreement
and the contractual obligations set forth in the Additional Agreements, Section 2(h) of Appendix
C provides that “[i]t is the belief and intention of the Developer and the Connecting
Transmission Owner that nothing in the Additional Agreements conflict in any material way
with [the Interconnection] Agreement.”  Further, as stated in Section 2(h) of Appendix C, if the
Connecting Transmission Owner or Developer becomes aware of a conflict, they will discuss
“what, if any, amendment of the Additional Agreement would be appropriate under the
circumstances.”

 

II.Request for CEII Treatment

Pursuant to the Commission’s regulations at 18 C.F.R. § 388.112 and 18 C.F.R. §

388.113, Con Edison requests that the one-line diagrams included as Figures A-1 and A-2 in
Appendix A of the Interconnection Agreement be protected from disclosure as Critical Energy
Infrastructure Information (“CEII”).10  The diagrams contain detailed, one-line schematics of
transmission lines, the Cricket Valley Substation, and generation facilities that, if disclosed,

 

9 See, e.g., New York Independent System Operator, Inc., Letter Order, Docket No. ER11-2199-
000 (December 28, 2010) (accepting revision to Article 29.6 that addressed requirements for Additional Agreements in Appendix C of the Interconnection Agreement).

10 On November 17, 2016, the Commission issued Order No. 833 to implement provisions of the
Fixing America’s Surface Transportation Act that pertain to the designation, protection and sharing of
Critical Electric Infrastructure Information.  See Regulations Implementing FAST Act Section 61003 -
Critical Electric Infrastructure Information; Availability of Certain North American Electric Reliability
Corporation Databases to the Commission, Order No. 833, 157 FERC ¶ 61,123 (2016).  The amended
procedures - referred to as the Critical Energy/Electric Infrastructure Information (CEII) procedures -
will become effective after the date of this filing.  Consistent with the current procedures concerning

critical energy infrastructure information in § 388.112(b) and the new CEII procedures in § 388.113(d),
Con Edison has described in the filing letter how the one-line diagrams in Figures A-1 and A-2 satisfy the definition of critical energy infrastructure information, which will be a subset of the new term critical
electric infrastructure information as defined in new § 388.113(c)(1).  In addition, consistent with the
current and new procedures, the cover page of the filing letter and the relevant pages of the
Interconnection Agreement that contain critical energy infrastructure information are labelled as including CEII and marked DO NOT RELEASE, and a Public and a CEII version of the Interconnection Agreement are being filed with this letter.  To the extent the Commission were to apply the requirements in new §
388.113(d)(1)(i) to this filing, Con Edison requests that the Commission designate the CEII material
submitted on December 1, 2016, with the full five-year CEII designation provided for in new §
388.113(e)(1) as the information provided in the one-line diagrams will continue to satisfy the definition of critical energy infrastructure information for this entire period.


 

 

Honorable Kimberly D. Bose December 1, 2016

Page 5

 

could pose a threat to the security and the reliability of the New York State bulk power system. The diagrams provide more than simply the general location of critical infrastructure.  Unlike publicly available maps of power transmission lines and generation and substation facilities, the schematics show the exact nature and specific location of facilities and transmission lines used to maintain the reliability of the New York State bulk power system.

The diagrams, in Con Edison’s assessment, reveal such critical information related to the facilities and transmission depicted therein that, if disclosed, could be useful to a person seeking to disable the power grid.  Therefore, the disclosure of these CEII diagrams would pose a threat to the reliability of the New York State bulk power system and the health and safety of New
York residents.  Moreover, the information revealed in this schematic reveals CEII, which the
Commission has determined to be exempt from mandatory disclosure under 5 U.S.C. §
552(b)(7)(F).  The diagrams have been omitted from the Public version of the Interconnection
Agreement included in this filing.  The diagrams are included only in the CEII version of the
Interconnection Agreement in the filing.

All communications related to this request for CEII treatment should be addressed to the following:

 

Paul Savage, Associate Counsel

Consolidated Edison Company of New York, Inc.

4 Irving Place, Room 1815-S

New York, NY 10003
Phone: (212) 460-2764
Fax: (212) 529-9265

savagep@coned.com

Vitaly Spitsa

Section Manager, Transmission Planning

Consolidated Edison Company of New York, Inc.

4 Irving Place, Room 13-705

New York, NY 10003
Phone:  (212) 460-6227

SPITSAV@coned.com

 

III. Proposed Effective Date and Request for Waiver of the 60-Day Notice Period

The Joint Filing Parties request an effective date of November 16, 2016, for the
Interconnection Agreement, which is the date of its execution.  The Joint Filing Parties
respectfully request that the Commission waive its prior notice requirement to permit the


 

 

Honorable Kimberly D. Bose December 1, 2016

Page 6

 

requested effective date.  The Commission has previously permitted interconnection agreements to become effective upon the date of execution.11

 

IV.    Communications and Correspondence

Communications regarding this filing should be directed to:
For the NYISO12


Robert E. Fernandez, General Counsel
Karen Georgenson Gach, Deputy General Counsel

*Sara B. Keegan, Senior Attorney

New York Independent System Operator, Inc.

10 Krey Boulevard

Rensselaer, NY 12144
Tel:  (518) 356-6000
Fax: (518) 356-4702
skeegan@nyiso.com


*Ted J. Murphy

Hunton & Williams LLP
2200 Pennsylvania Avenue, NW Washington, D.C. 20037
Tel: (202) 955-1500

Fax: (202) 778-2201
tmurphy@hunton.com

*Michael J. Messonnier Jr. Hunton & Williams LLP 951 East Byrd Street

Richmond, VA 23219
Tel: (804) 788-8200
Fax: (804) 344-7999

mmessonnier@hunton.com


 

For Consolidated Edison Company of New York, Inc.

*Paul Savage, Associate Counsel

Consolidated Edison Company of New York, Inc.

4 Irving Place, Room 1815-S

New York, NY 10003
Phone: (212) 460-2764
Fax: (212) 529-9265

 

 

11 See, e.g., New York Independent System Operator, Inc. and New York State Electric & Gas

Corporation, Docket No. ER11-2953-000 (April 7, 2011) (accepting interconnection agreement effective as of date of execution); see also New York Independent System Operator, Inc. and Niagara Mohawk Power Corp., Letter Order, Docket No. ER08-985-000 (June 26, 2008) (same); New York Independent System Operator, Inc. and New York Power Authority, Letter Order, Docket No. ER08-861-000 (May 27, 2008) (same); New York Independent System Operator, Inc. and New York Power Authority, Letter
Order, Docket No. ER08-699-000 (May 16, 2008) (same).

12 The NYISO respectfully requests waiver of 18 C.F.R. § 385.203(b)(3) (2014) to permit service on counsel in both Washington, D.C. and Richmond, VA.


 

 

Honorable Kimberly D. Bose December 1, 2016

Page 7

 

savagep@coned.com

*Vitaly Spitsa

Section Manager, Transmission Planning

Consolidated Edison Company of New York, Inc.

4 Irving Place, Room 13-705

New York, NY 10003
Phone: (212) 460-6227
SPITSAV@coned.com

*Designated to receive service.

 

 

V.Documents Submitted

The NYISO submits the following documents with this filing letter:

 

a clean Public version of the Interconnection Agreement (Attachment I);

a blacklined Public version of the Interconnection Agreement showing the changes
from the body of the Pro Forma LGIA (Attachment II);

 

a clean CEII version of the Interconnection Agreement  (Attachment III); and

 

the signature page for the Interconnection Agreement (Attachment IV).

 

 

VI.    Service

The NYISO will send an electronic link to this filing to the official representative of each
of its customers, to each participant on its stakeholder committees, to the New York Public
Service Commission, and to the New Jersey Board of Public Utilities.  In addition, a complete
copy of the Public documents included with this filing will be posted on the NYISO’s website at
www.nyiso.com.


 

 

Honorable Kimberly D. Bose December 1, 2016

Page 8

 

VII.   Conclusion

Wherefore, the Joint Filing Parties respectfully request that the Commission accept the Interconnection Agreement for filing with an effective date of November 16, 2016.

Respectfully submitted,

/s/ Sara B. Keegan

Sara B. Keegan
Counsel for the

New York Independent System Operator, Inc.

 

/s/ Paul Savage

Paul Savage
Counsel for

Consolidated Edison Company of New York, Inc.

 

cc:Michael Bardee

Anna Cochrane
Kurt Longo
Max Minzner
Daniel Nowak
Larry Parkinson

J. Arnold Quinn
Douglas Roe

Kathleen Schnorf
Jamie Simler
Gary Will