Amanda Downey
Counsel

 

 

December 13, 2011

 

VIA e-TARIFF FILING

Ms. Kimberly D. Bose Secretary

Federal Energy Regulatory Commission 888 First Street, NE

Washington, DC  20426

 

Re:Niagara Mohawk Power Company

Docket No. ER12-____

Cost Reimbursement Agreement with Athens Generating Company, LLC

 

Dear Secretary Bose:

Pursuant to Section 205 of the Federal Power Act (“FPA”), 16 U.S.C. § 824d and Part 35 of the Federal Energy Regulatory Commission’s (“Commission”) regulations, Niagara Mohawk Power Company (“Niagara Mohawk”) d/b/a National Grid submits for Commission acceptance a Cost Reimbursement Agreement (“Reimbursement Agreement”) between Niagara Mohawk and Athens Generating Company, LLC (“Athens”) designated under the New York Independent
System Operator, Inc. (“NYISO”) open access transmission tariff (“OATT”), FERC Electric Tariff, Original Volume No. 1 as Service Agreement No. 1823.

Niagara Mohawk respectfully requests waiver of the Commission’s notice requirements to allow the Reimbursement Agreement to become effective on November 18, 2011, the date set forth in the Agreement.

I.Background

Niagara Mohawk is a public utility with a transmission system in the State of New York.
Athens is a Delaware limited liability company and owner of the New Athens Generating
Facility in Athens, New York.  Athens is currently interconnected to the Niagara Mohawk
system pursuant to the terms of an interconnection agreement that was filed with the
Commission in Docket No. ER01-1894-000 on April 30, 2001, and accepted on June 6, 2001
subject to a compliance filing accepted by the Commission on September 18, 2001.

Athens is making certain modifications to the New Athens generating facility that require modifications to the Niagara Mohawk interconnection facilities.  The scope of these services is set forth in Schedule A to the Reimbursement Agreement.  These services will allow Athens to improve voltage regulation and accuracy to the Athens control room and will provide a back-up communication capability.  The services and modifications contemplated by the Reimbursement Agreement will not increase the capacity of the New Athens plant or require amendments to the existing interconnection agreement.

 

40 Sylvan Road, Waltham, MA 02451

T: 781-907-2136 F: 781-907-5701 amanda.downey@nationalgrid.com www.nationalgrid.com


 

 

Ms. Kimberly D. Bose
December 13, 2011
Page 2

 

Niagara Mohawk is performing these services at actual costs as set forth in Article I of the Reimbursement Agreement and has not collected any funds pursuant to this agreement prior to the instant filing.1

II. Jurisdictional Status of the Reimbursement Agreement

Section 205 of the FPA authorizes the Commission to require 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.2  In the Prior Notice Order, the Commission stated that the types of agreements that a utility must file include a “jurisdictional CIAC agreement,” which is defined as an “agreement providing for the customer payment of contributions-in-aid-of-construction” of facilities used to provide jurisdictional service, either in a single lump sum or over a period of time.3  Commission precedent also indicates that
engineering and pre-construction agreements related to jurisdictional facilities can be construed as CIAC agreements which should be filed with the Commission.4

The Reimbursement Agreement relates to engineering, procurement, and construction
services that are required in connection with modifying the existing interconnection of Athens
and relates to jurisdictional facilities, therefore, it is likely to be construed as a CIAC agreement
which should be filed for Commission approval under applicable precedent.   As noted above,
Niagara Mohawk is performing the services provided for in the Reimbursement Agreement at
actual costs, and therefore, the Commission should find that the price of these services is just and
reasonable.

III.Effective Date and Request for Waiver

Niagara Mohawk respectfully requests waiver of the 60-day notice requirement contained

in Section 35.3 of the Commission’s regulations to allow the Reimbursement Agreement to

become effective upon the effective date set forth in the Agreement, i.e., November 18, 2011.


 

 

 

 

 

 

 

 

 

 

1


 

 

 

 

 

See definition of “Company Reimbursable Costs.” See also Section 11.1, stating “The Company is not in


the business of performing design or construction services for profit and is not receiving any fee or profit (as


contrasted with cost reimbursement) for its performance of the work hereunder.”


 

2

 

3

 

4


16 U.S.C. §§ 824d(a), -(c).

Prior Notice Order at 61,974, 61,990.
For example, in Southern California Edison Co., 98 FERC ¶ 61,304, at 62,300-01 (2002), the Commission


found that seven letter agreements pursuant to which the utility undertook pre-interconnection activities in

anticipation of certain generator interconnections "'including procurement, engineering, and limited construction" were in essence jurisdictional CIAC agreements that must be filed with the Commission. See also GenPower
Anderson, LLC v. Duke Energy Corp. and Duke Electric Transmission, 101 FERC ¶ 61,038 (2002) (requiring Duke Energy to file with the Commission an engineering and design letter agreement entered into pending execution of an Interconnection and Operating Agreement).


 

 

Ms. Kimberly D. Bose
December 13, 2011
Page 3

 

Good cause exists for the Commission to grant this waiver as no prejudice will result to
any party.  Niagara Mohawk is working with Athens to proceed on a timeline that would enable
the completion of engineering and procurement work in July 2012.  Granting the requested
waiver will benefit a generator interconnecting to the transmission system and is therefore
consistent with the standard set forth by the Commission in Central Hudson.5  For these reasons,
the Commission should find that good cause exists to grant an effective date of November 18,
2011.

 

IV.Communications and Service

Communications and correspondence with respect to this matter should be addressed to

the following individuals, and the following should be included on the official service list for this

proceeding:6

Terry L. SchwennesenSean Atkins

Counsel for National GridAlston & Bird LLP

40 Sylvan RoadThe Atlantic Building

Waltham, MA 02451-1120950 F Street, NW

781-907-1811Washington, DC  20004

Terry.Schwennesen@us.ngrid.comTel:  202-239-3300

Fax:  202-239-3333

Sean.Atkins@alston.com

 

Amanda Downey

Counsel

National Grid USA Service Company, Inc.

40 Sylvan Road

Waltham, MA 02451
Tel: 781-907-2136

amanda.downey@us.ngrid.com

 

 

 

 

 

 

 

 

 

 

 

 

 

5See Central Hudson Gas & Electric Corp., 60 FERC ¶ 61,106 at 61,338, reh’g denied, 61 FERC ¶ 61,089

(1992).

6Niagara Mohawk requests waiver of 18 C.F.R. § 385.203(b) to allow three persons to be added to the

service list in this proceeding.


 

 

Ms. Kimberly D. Bose
December 13, 2011
Page 4

 

V.Conclusion

For the reasons stated herein, NEP respectfully requests that the Commission accept the Reimbursement Agreement, effective November 18, 2011.

Copies of this filing have been served on Athens, the New York ISO, and New York regulators.

 

 

Sincerely,

 

/s/ Sean Atkins

Sean Atkins

Alston & Bird LLP

The Atlantic Building
950 F Street, NW

Washington, DC  20004 202-239-3300

sean.atkins@alston.com