Elizabeth W. Whittle
Partner
T 202-585-8338
ewhittle@nixonpeabody.com
Nixon Peabody LLP
401 9th Street NW
Suite 900
Washington, DC 20004-2128 202-585-8000
November 26, 2013
The Honorable Kimberly D. Bose Secretary
Federal Energy Regulatory Commission 888 First Street, N.E.
Room 1-A
Washington, DC 20426
RE: Rochester Gas and Electric Corporation, Docket No. ER14--000
Filing of Large Generator Interconnection Agreement with Allegany Generating Station LLC
Dear Ms. Bose:
Pursuant to Federal Power Act (“FPA”) Section 205, 16 U.S.C. § 824d, and Part
35 of the Federal Energy Regulatory Commission’s (“Commission”) regulations,
Rochester Gas and Electric Corporation (“RG&E”) submits a Large Generator
Interconnection Agreement (“LGIA”) between RG&E and Allegany Generating Station LLC (“Allegany”). The attached LGIA (“Allegany LGIA”) is designated as Service Agreement No. 2036 under the New York Independent System Operator, Inc.’s
(“NYISO”) Open Access Transmission Tariff (“OATT”).
The Allegany LGIA is two party interconnection agreement for continued
provision of interconnection service to the Allegany generating station after it is sold from RG&E to Allegany. RG&E requests that the Commission accept the Allegany LGIA effective November 1, 2013, the closing date for the sale of the Allegany
generating station to Allegany.
I.Background
RG&E is public utility and a gas and electric corporation, duly organized, existing and authorized to do business under the Transportation Corporation Laws of the State of New York. RG&E serves residential, commercial, and industrial retail electric customers in its service territory in and near Rochester, New York, which territory contains a
population of approximately 900,000.
14732675.1
The Honorable Kimberly D. Bose November 26, 2013
Page 2
Allegany Generating Station LLC is a New York limited liability company
formed to acquire, own and operate the Allegany generating station, an approximately 82
MW gas-fired power plant located in the Town of Hume, Allegany County, New York.
On November 1, 2013, RG&E sold the Allegany generating station to Allegany. As part of the transaction, Allegany and RG&E executed the attached LGIA to provide continued interconnection service to the Allegany generating station.
II.RG&E-Allegany LGIA
With a few minor variations, the Allegany LGIA follows the pro forma LGIA set
forth in Appendix 6 of Attachment X to the NYISO OATT. The main difference
between the Allegany LGIA and the NYISO pro forma is that the Allegany LGIA is a
two-party LGIA between the transmission owner, RG&E, and the generating facility
owner. Under the NYISO pro forma, the LGIA is a three-party LGIA among the
transmission owner, generating owner and the NYISO. A black-line comparison of the
Allegany LGIA to the NYISO LGIA is included as Attachment B to this Letter.
Commission precedent supports acceptance of the Allegany LGIA as a two-party
agreement. In prior orders, the Commission has found that, in circumstances such as this,
it is not necessary for the NYISO to be a party to the LGIA.1 The Commission stated:
[t]hey are not the type of new generator interconnection agreements
envisioned by Order No. 2003; rather they are more like after-the-fact
interconnection operating agreements that govern the terms, conditions,
and rates associated with the continued operation and maintenance of
previously constructed facilities built to accommodate the interconnection
of the Alliance generators to Niagara Mohawk’s transmission system.
Accordingly we will not require NYISO to be a signatory to these . . . IAs.
Like the interconnection agreements in the Niagara Mohawk/Alliance case,
Allegany LGIA is not a new generator interconnection agreement of the type envisioned
by the Commission when it issued Order No. 2003. Instead, the Allegany LGIA governs
the terms, conditions and rates associated with the continued operation of the Allegany
generating station, using the previously-constructed facilities built to accommodate the
interconnection of the existing facility to the RG&E transmission system. There have
been no changes to the capacity or operating characteristics of the project. All that has
changed is that RG&E has sold the project to Allegany and, as a result, requires an
interconnection agreement. Thus, the Commission should accept the Allegany LGIA as a two-party LGIA.
1
14732675.1
Alliance Energy, Docket No. ER07-1019, ER07-1020, and ER07-1021, issued August 7, 2008.
The Honorable Kimberly D. Bose November 26, 2013
Page 3
The NYISO’s pro forma LGIA contains a number of provisions that are
applicable to new interconnections, but are not applicable to existing interconnections,
such as the Allegany interconnection that is the subject of this filing. RG&E and
Allegany left nearly all of the provisions in the document, consistent with the direction of
the Commission in prior orders. See, e.g., PJM Interconnection, LLC, 111 FERC ¶
61,098 (2005). RG&E and Allegany use the term Interconnection Customer, rather than
Developer, throughout the LGIA. In addition, a number of provisions relating to the
study, engineering, development and construction of interconnection facilities have been
removed. All of the provisions that have been modified/removed are identified in
Appendix I.
III. Effective Date
Pursuant to Section 35.11 of the Commission’s regulations, RG&E requests that the Commission accept this LGIA effective November 1, 2013, the date of the closing of the sale of the Allegany project.
IV. Documents Enclosed
The following documents are included in this filing:
i. NYISO Service Agreement No. 2036, LGIA between Rochester Gas and
Electric Corporation and Allegany Generating Station LLC, in clean format (Attachment A)
ii. NYISO Service Agreement No. 2036 between Rochester Gas and Electric
Corporation and Allegany Generating Station LLC, black-lined to show changes from the NYISO pro forma LGIA included in Attachment X to the NYISO OATT (Attachment B)
V.Communications and Service
Communications regarding this filing should be addressed to the following
individuals:
Elizabeth W. WhittleJeffrey A. Rosenbloom
Nixon Peabody, LLPManaging Attorney and Assistant Secretary
401 Ninth Street, N.W.Rochester Gas and Electric Corporation
Suite 90089 East Avenue
Washington, DC 20004Rochester, New York 14649
202-585-8338585-724-8132
ewhittle@nixonpeabody.comJeffrey_rosenbloom@rge.com
A copy of this filing has been served on Allegany, the NYISO and the New York Public Service Commission.
14732675.1
The Honorable Kimberly D. Bose November 26, 2013
Page 4
RG&E respectfully requests that the Commission accept the RG&E-Allegany LGIA effective November 1, 2013.
Respectfully submitted,
/s/ Elizabeth W. Whittle
Elizabeth W. Whittle Counsel to
Rochester Gas and Electric Corporation
14732675.1
