Amanda C. Downey

Counsel

February 23, 2015

The Honorable Kimberly D. Bose Secretary

Federal Energy Regulatory Commission 888 First Street, N.E.

Washington, DC 20426

Re:Niagara Mohawk Power Corporation, d/b/a National Grid

Docket No. ER15-___-000

Filing of Amended and Restated Interconnection Agreement with Covanta Niagara, L.P. and Request for Waiver of
Commission 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 (“National Grid”) submits an Amended and Restated Interconnection Agreement (the “Covanta Niagara IA”) between National
Grid and Covanta Niagara, L.P. (“Covanta Niagara”). The Covanta Niagara IA is an
amended and restated version of an interconnection agreement previously accepted by the Commission. The Covanta Niagara IA is designated as Service Agreement No. 2205
under the New York Independent System Operator, Inc.’s (“NYISO”) Open Access
Transmission Tariff (“OATT”).

The Covanta Niagara IA is an undisputed agreement between National Grid and Covanta Niagara for the continued provision of interconnection service to the generating facility owned by Covanta Niagara and located in the Town of Niagara Falls, County of Niagara, New York (the “Plant”). National Grid requests waiver of the Commission’s prior notice requirement to allow the Covanta Niagara IA to go into effect as of the
effective date set forth therein, December 30, 2014.

I.Background

National Grid is a public utility with a transmission system in the State of New

York. National Grid’s transmission facilities have been placed under the operational

control of the NYISO.

The Honorable Kimberly Bose February 23, 2015

Page 2

Covanta Niagara owns and operates the Plant, which is located in the Town of Niagara Falls, County of Niagara, New York and has a nominal installed capacity not to exceed 42,400 kW.

Until 2005, Covanta Niagara was named American Ref-Fuel of Niagara, L.P.
(“Amer-Ref Fuel”). In 1994, National Grid and Amer-Ref Fuel entered into an
interconnection agreement (the “Amer-Ref Fuel IA”) regarding the Plant. Although the Amer-Ref Fuel IA was not originally subject to the Commission’s filing requirements,
that agreement became subject to those filing requirements due to a later change in
circumstances, and National Grid filed the Amer-Ref Fuel IA for Commission acceptance in Docket No. ER07-1285 on August 14, 2007. The Commission accepted the Amer-Ref Fuel IA by letter order issued December 31, 2007.3 By its own terms, the Amer-Ref Fuel IA expired upon the expiration of a related Power Purchase Agreement between AmerRef Fuel and National Grid, i.e., on December 29, 2014.

II.The Covanta Niagara IA

National Grid and Covanta Niagara have entered into the Covanta Niagara IA to provide for continued interconnection service to the Plant using the transmission system owned by National Grid, pursuant to the terms of the Covanta Niagara IA, beyond the December 29, 2014, expiration date of the Amer-Ref Fuel IA. The parties intend the Covanta Niagara IA to amend and restate the Amer-Ref Fuel IA.4

The Covanta Niagara IA is largely the same as the Amer-Ref Fuel IA. The following is a summary of the significant differences between the original and the amended agreements:

 The Covanta Niagara IA contains updated Recitals to reflect relevant intervening
events since the execution of the Amer-Ref Fuel IA;

 The Covanta Niagara IA replaces the defined term “Niagara Mohawk” with

“National Grid,” and replaces the defined term “Producer” with “Interconnection Customer,” throughout the Covanta Niagara IA;

 Section 1.2 of the Covanta Niagara IA replaces the Amer-Ref Fuel IA definition
of good utility practice with the definition found in the NYISO pro forma Large
Generator Interconnection Agreement;

 Section 6.1 of the Covanta Niagara IA eliminates a reference to a power purchase
agreement);

The Honorable Kimberly Bose February 23, 2015

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 Section 7.3 of the Covanta Niagara IA includes an updated reference to National

Grid’s P.S.C. No. 220 Schedule for Electric Service in place of an outdated reference in the Amer-Ref Fuel IA to P.S.C. 207;

 Article 10 of the Covanta Niagara IA contains updated information for National

Grid and Covanta Niagara for purposes of making written notifications;

 Section 11.1 of the Covanta Niagara IA contains an updated provision stating that

the Covanta Niagara IA will be in effect from December 30, 2014, to December 29, 2019, subject to acceptance for filing or approval by the Commission;

 Section 11.2 of the Covanta Niagara IA contains an updated provision stating that,

upon expiration of the Covanta Niagara IA, if Covanta Niagara desires to remain interconnected to the transmission system thereafter, then National Grid and
Covanta Niagara will enter into a new interconnection agreement substantially consistent with the then-current NYISO pro forma Large Generator
Interconnection Agreement; and

 Article 22 of the Covanta Niagara IA contains an updated provision stating that

the Covanta Niagara IA sets forth the entire understanding and agreement

between National Grid and Covanta Niagara IA as to the subject matter of the
Covanta Niagara IA, and merges and supersedes all prior and contemporaneous understandings, oral or written, between National Grid and Covanta Niagara as to that subject matter.5

Commission precedent supports acceptance of the Covanta Niagara IA as a twoparty agreement. In proceedings on two-party generator interconnection agreements between National Grid and generation subsidiaries of Alliance Energy (collectively, the “Alliance Energy IAs”),6 the Commission found that the NYISO did not need to be a party to the two-party Alliance Energy IAs, for the following reasons:

[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
unexecuted IAs.7

The Honorable Kimberly Bose February 23, 2015

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Like the Alliance Energy IAs, the Covanta Niagara IA is not a new generator

interconnection agreement of the type envisioned by Order No. 2003. Instead, the

Covanta Niagara IA governs the terms, conditions, and rates associated with the

continued operation and maintenance of the previously constructed facilities built to

accommodate the interconnection of the existing Plant to the National Grid transmission
system. Therefore, the Commission should accept the Covanta Niagara IA as a two-party
agreement.

III. Effective Date and Request for Waiver

As discussed above, the Covanta Niagara IA is intended to go into effect as of
December 30, 2014, i.e., more than 30 days after the date the Covanta Niagara IA is
being filed. Therefore, National Grid respectfully requests waiver of the 30-day notice
requirement so that the Covanta Niagara IA can be effective December 30, 2014.8

Good cause exists for the Commission to grant this waiver. Granting the waiver
will accord with the intent of National Grid and Covanta Niagara to make the agreement
effective as of December 30, 2014. No prejudice will result to any party from granting
the waiver. Granting the requested waiver will continue the terms of interconnection of
the Plant without interruption, benefitting a generator interconnected to the transmission
system, and is therefore consistent with the standard set forth by the Commission in

Central Hudson.9 The Commission has previously permitted interconnection agreements to become effective on their execution dates.10

IV.Documents Enclosed

In addition to this filing letter, attached are the following documents:

i. The Covanta Niagara IA (Service Agreement No. 2205 under the NYISO

OATT), provided in clean format (Attachment A)

ii. Red-lined revisions showing the differences between the Covanta Niagara

IA and the Amer-Ref Fuel IA (Attachment B)

characteristics of existing generating facilities interconnected to Niagara Mohawk’s or any other NYISO

member’s transmission system will require the NYISO to be a signatory to that IA.” Id. However, the Plant is already interconnected to the transmission system owned by National Grid, and there has been no
increase in capacity or material modifications to the operating characteristics of the Plant. Therefore, the NYISO does not need to be a signatory to the Covanta Niagara IA.

Amanda C. Downey
National Grid USA

Service Company, Inc.

40 Sylvan Road

Waltham, MA 02451 (781)907-2136

amanda.downey@nationalgrid.com

William L. Malee

Director, Transmission Commercial National Grid USA

40 Sylvan Road

Waltham, MA 02451 (781) 907-2422

bill.malee@nationalgrid.com

Sean A. Atkins

Bradley R. Miliauskas Alston & Bird LLP The Atlantic Building 950 F Street, NW

Washington, DC 20004 (202) 239-3300

sean.atkins@alston.com
bradley.miliauskas@alston.com

The Honorable Kimberly Bose February 23, 2015

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VI.Conclusion

For the reasons stated herein, National Grid respectfully requests that the
Commission accept the Covanta Niagara IA effective as of December 30, 2014.

Respectfully submitted,

/s/ Amanda C. Downey

Amanda Downey
Counsel

National Grid USA

Service Company, Inc.

40 Sylvan Road

Waltham, MA 02451

Attorney for Niagara Mohawk Power
Corporation d/b/a National Grid