10 Krey Boulevard     Rensselaer, NY  12144

May 1, 2013

By Electronic Delivery

Honorable Kimberly D. Bose, Secretary 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., Niagara Mohawk Power
Corporation d/b/a National Grid, and Erie Boulevard Hydropower, LP and
Request for Waiver of the 60-Day Notice Period, Docket No. ER13-___-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 Niagara Mohawk Power Corporation d/b/a National Grid (“National Grid”) (collectively, the “Joint Filing Parties”) hereby tender for filing an executed Large Generator Interconnection Agreement (“Interconnection Agreement”) as Service Agreement No. 1952 among the NYISO, National Grid as the Transmission Owner, and Erie Boulevard Hydropower, LP (“Erie Blvd. Hyrdo” or “Developer”) as the Developer.3

With the limited exceptions noted in Section II of this letter, the Interconnection

Agreement conforms to the NYISO’s pro forma Large Generator Interconnection Agreement

(“LGIA”) that is contained in Attachment X of the NYISO’s OATT.  The Joint Filing Parties

respectfully request that the Commission accept the Interconnection Agreement for filing.

Further, as described in Part III of this letter, the Joint Filing Parties respectfully request a waiver of the Commission’s prior notice requirements to make the Interconnection Agreement effective as of April 17, 2013.

I.Background

The Interconnection Agreement governs the interconnection of Erie Blvd. Hydro’s Large
Generating Facility (“Facility”) located at the Stewarts Bridge Reservoir, near the Town of
Hadley, in Saratoga County, New York.  Erie Blvd. Hydro currently operates the Facility at a

1 16 U.S.C. § 824d (2011).

2 18 C.F.R. § 35.12 (2011).

3 Capitalized terms not otherwise defined in this letter have the meaning set forth in Attachments S and X of the NYISO’s Open Access Transmission Tariff (“OATT”).

Honorable Kimberly D. Bose May 1, 2013

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capacity of 30 MW (nameplate at 0.8 power factor) under an agreement with National Grid that
pre-dates the NYISO’s interconnection procedures.4  Erie Blvd. Hydro is expanding the Facility
with an additional 2.7 MW (nameplate at 0.9 power factor) generator.  The maximum summer
output of the New Facility will be 40.5 MW (3.0 MW incremental) at 95ºF and unity power
factor.  The Point of Interconnection is identified in Appendix A of the Interconnection
Agreement at Figure 1.

II. Variations From the NYISO’s Pro Forma LGIA

As noted above, the Agreement is based on the NYISO’s pro forma LGIA; however, the
Parties have agreed to make two minor sets of modifications to the pro forma agreement.  These
modifications are described below and are necessary to reflect the unique circumstances
surrounding (1) Erie Blvd. Hydro’s request for interconnection service (i.e., Energy Resource
Interconnection Service only); and (2) Erie Blvd. Hydro’s election to execute an Interconnection
Agreement prior to completion of a pending Class Year Interconnection Facilities Study (“Class
Year Study”).5

In various orders, the Commission has provided guidance regarding deviations from the
applicable standard form of interconnection agreement.  Specifically, the Commission has stated
that where a case-specific deviation from a pro forma interconnection agreement is sought, the
filing parties must produce justification explaining what makes the interconnection unique and
what operational concerns or other factors necessitate the changes, including reliability concerns,
novel legal issues, or other unique circumstances.6  In the present case, two such factors trigger
the need to modify the pro forma LGIA:  (1) Erie Blvd. Hydro’s election to have the expansion
of the Facility studied only for Energy Resource Interconnection Service and not for

deliverability in the NYISO interconnection process; and (2) the timing of execution of the

Interconnection Agreement vis-à-vis the status of the Class Year Study in which the Facility is being studied.

4 An Amended and Restated Interconnection Agreement between National Grid and Erie Blvd. Hydro was filed with the Commission on January 29, 2010 and accepted by delegated letter order on March 25, 2010 in Docket No. ER10-690-000.

5 The Joint Filing Parties also agreed to modifications specifically contemplated by the pro forma LGIA, but do not consider them non-conforming.   For example, Article 2.2 of the Interconnection Agreement (“Term of Agreement”) provides for a term of ten (10) years.  The language of Article 2.2 specifically provides that the Parties may elect a term longer than ten (10) years.  Exercising the rights afforded to them by this language, the Parties have elected to insert a term of twenty (20) years.  Similarly, the Parties have updated the page numbers in the Table of Contents and inserted language in blanks the pro forma contemplated the Parties would complete.  None of these are changes to the pro forma that the Parties consider non-conforming.

6 See Order No. 2006 at P 562. See also Midwest Independent Transmission System Operator, Inc., 111 FERC ¶ 61,421 at P 11 (2005) (citing Order No. 2003 at PP 913-15).

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Honorable Kimberly D. Bose May 1, 2013

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The Commission has accepted changes to the pro forma Interconnection Agreement such as these, where they are unique circumstances associated with the interconnection.7   In fact, the modifications to the pro forma LGIA in this Agreement are substantially similar or identical to those previously accepted by the Commission.8  The NYISO respectfully requests that the
Commission accept these modifications in light of the unique factors as well as the minimal
modifications to the pro forma LGIA described below

First, Section 4.1.1 of the body of the Agreement has been modified to incorporate a reference to Appendix C which provides clarifying information about the Facility’s Capacity Resource Interconnection Service (“CRIS”).  Appendix C includes language to clarify the Facility’s CRIS value in light of Erie Blvd. Hydro’s election to not to have the Facility’s
incremental capacity evaluated for deliverability in the Class Year Interconnection Facilities Study (“Class Year Study”) process.

Second, Appendix C of the Agreement has been modified to address the unique

circumstance of the Facility’s Interconnection Agreement being executed prior to the completion
of the Class Year Interconnection Facilities Study in which the Facility is being evaluated.9  The
Parties have agreed to add language to Appendix C to recognize this unique circumstance and to
require the Developer to (1) accept the cost allocation for any System Upgrade Facilities for its
expansion to the existing Facility from the Class Year 2012 Interconnection Facilities Study; (2)
post any Security as required by the Agreement or Attachment S to the NYISO OATT; and (3)
make any Headroom payments required by the Class Year 2012 Interconnection Facilities Study
pursuant to Attachment S.  The added provisions in Appendix C further require the Parties to

amend the Agreement if upgrade facilities identified in the Class Year 2012 Interconnection

Facilities Study for the expansion to the existing Facility, differ in any material way from those identified in the Agreement.

All of the parties to the Interconnection Agreement (“Parties”) agree to these changes. The Joint Filing Parties have included a blackline of the Interconnection Agreement against the NYISO’s pro forma LGIA to highlight this change.  The Joint Filing Parties respectfully request that the Commission accept this modification.

7 See PJM Interconnection, LLC, 111 FERC ¶ 61,163 at PP 10-11, reh’g denied, 112 FERC ¶ 61,282

(2005).

8 The Commission has previously accepted similar non-conforming provisions to pro forma

interconnection agreements.  See, e.g., New York Independent System Operator, Inc. and Niagara Mohawk Power
Corporation d/b/a National Grid, Letter Order, Docket No. ER11-3788-000 (July 18, 2011) (accepting nearly
identical non-confirming provisions to reflect CRIS eligibility);  New York Independent System Operator, Inc. and
Consolidated Edison Company of New York, Inc., Letter Order, Docket No. ER11-21999-000 (November 29, 2010)
(accepting nearly identical non-conforming provisions to reflect the facility’s unique status in a pending Class Year
Study).

9 Only the expansion of the Facility is being evaluated in the Class Year Interconnection Facilities Study. The existing portion of the Facility pre-dated the NYISO’s interconnection process.

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Honorable Kimberly D. Bose May 1, 2013

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

The Joint Filing Parties request an effective date of April 17, 2013 for the Interconnection Agreement, which is the date of execution.  The Joint Filing Parties respectfully request that the Commission waive its prior notice requirement in order to permit the requested effective date.
The Commission has previously permitted interconnection agreements to become effective upon the date of execution.10

IV.    Communications and Correspondence

Communications regarding this filing should be directed to:

For the NYISO

Robert E. Fernandez, General Counsel

Raymond Stalter, Director of Regulatory Affairs *Sara B. Keegan, Senior Attorney

New York Independent System Operator, Inc.

10 Krey Boulevard

Rensselaer, NY 12144
Tel: (518) 356-8554
Fax: (518) 356-7678
skeegan@nyiso.com

For Niagara Mohawk d/b/a National Grid

*William L. Malee*Amanda C. Downey

Director, Transmission CommercialCounsel for National Grid USA

National GridService Company, Inc.

40 Sylvan Road40 Sylvan Road

Waltham, MA 02451Waltham, MA 02451

Tel: 781-907-2422Tel: 781-907-2136

Fax: 781-907-5707Fax: 781-907-5701

Bill.Malee@nationalgrid.comAmanda.Downey@nationalgrid.com

*Designated to receive service.

10 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).

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Honorable Kimberly D. Bose May 1, 2013

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V.Documents Submitted

The NYISO submits the following documents:

• this filing letter;

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

• a blacklined version showing the changes between the pro forma LGIA and the
Interconnection Agreement (Attachment II) ; and

• a graphic showing the original signatures obtained for the Agreement
(Attachment III).

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.

VII.   Conclusion

Wherefore, the NYISO respectfully requests that the Commission accept the Interconnection Agreement effective as of April 17, 2013.

Respectfully submitted,

/s/ Sara B. Keegan

Sara B. Keegan
Counsel for the

New York Independent System Operator, Inc.

/s/Amanda C. Downey

Amanda C. Downey

Counsel for National Grid USA Service Company, Inc.

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