Amanda C. Downey

Counsel

February 22, 2016

The Honorable Kimberly D. Bose Secretary

Federal Energy Regulatory Commission 888 First Street, NE

Washington, DC  20426

Re:   Niagara Mohawk Power Corporation d/b/a National Grid
Docket No. ER16-____-000

Filing of Cost Reimbursement Agreement with the Oneida Indian Nation

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 a Cost Reimbursement Agreement (“Reimbursement Agreement”) between National Grid and the Oneida Indian Nation (“Nation”).3  The Reimbursement Agreement is designated as Service Agreement No. 2264 under the New York Independent System Operator, Inc.’s (“NYISO”) Open Access Transmission Tariff (“OATT”).

The Reimbursement Agreement is an undisputed agreement to facilitate the

performance of certain work that the Nation has requested National Grid to do with

respect to a portion of a specified transmission line to be relocated as described in the

Reimbursement Agreement.  National Grid requests that the Commission grant waiver of the prior notice requirement and accept the Reimbursement Agreement effective as of December 14, 2015, the effective date agreed to by the Parties.  National Grid has not collected any funds pursuant to the Reimbursement Agreement.

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 Nation is a sovereign Indian nation with an office and place of business in

Verona, New York.  The Nation is not a transmission customer under the NYISO OATT.

1

2

3

16 U.S.C. § 824d.

18 C.F.R. Part 35.
Together, National Grid and the Nation are referred to in the Reimbursement Agreement and in

this transmittal letter as the “Parties.”

40 Sylvan Road, Waltham, MA 02451

 T: 781-907-2136  F: 781-296-8092  amanda.downey@nationalgrid.com  www.nationalgrid.com

The Honorable Kimberly D. Bose February 22, 2016

Page 2

The Nation has requested that National Grid relocate a portion of an existing 115
kV transmission line from lands owned by National Grid that are adjacent to the Nation’s
Turning Stone Resort Casino property, to Nation-owned property.  National Grid is
willing to perform the engineering, design, and construction work required to accomplish
the relocation of the portion of the existing transmission line, subject to:  (i)
reimbursement by the Nation of all actual costs and expenses incurred by National Grid
in connection with the work; (ii) the Nation’s prior delivery of certain real property
interests as contemplated in the Reimbursement Agreement; (iii) the Nation’s
performance of all other duties, responsibilities, and obligations set forth in the
Reimbursement Agreement, including, without limitation, specified work to be
performed by the Nation; and (iv) receipt of any and all required approvals as set forth in
the Reimbursement Agreement.4

II. Description of the Reimbursement Agreement and Filing Requirements

Pursuant to the Reimbursement Agreement, the Nation will reimburse National
Grid for the actual costs and expenses incurred in connection with the work described
above.  The Reimbursement Agreement sets forth the terms and conditions of this work
and certain related commitments by the Nation.  The Reimbursement Agreement includes
provisions addressing the performance and schedule of the work, liability and
indemnification, insurance, regulatory and governmental approvals, and various other
standard provisions for comparable utility cost reimbursement agreements.

Section 205 of the FPA authorizes the Commission to require public 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.5  In the
Prior Notice Order, the Commission stated that the types of agreements that a public
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.6  Commission precedent also indicates that engineering and pre-
construction agreements related to jurisdictional facilities can be construed as CIAC
agreements.7

The Reimbursement Agreement relates to the recovery of costs for jurisdictional
facilities and engineering, procurement, and construction services necessary to facilitate

4

5

6

Reimbursement Agreement, Recitals, Articles 3.0, 7.0, and 18.0, and Exhibits A and C.

16 U.S.C. §§ 824d(a)-(c).

Prior Notice and Filing Requirements Under Part II of the Federal Power Act, 64 FERC ¶ 61,139,

at 61,974, 61,988-91 (1993) (“Prior Notice Order”).

7

For example, in Southern California Edison Company, 98 FERC ¶ 61,304, at 62,300-01 (2002),

the Commission required the filing of seven letter agreements related to pre-interconnection activities in anticipation of certain generator interconnections, “including procurement, engineering, and limited
construction.”  See also GenPower Anderson, LLC v. Duke Energy Corp. and Duke Electric Transmission, 101 FERC ¶ 61,038 (2002) (requiring Duke Energy to file an engineering and design letter agreement that was entered into pending execution of an interconnection and operating agreement).

The Honorable Kimberly D. Bose February 22, 2016

Page 3

the performance of work with respect to a transmission line and related facilities owned
by National Grid as described in the Reimbursement Agreement.  Although the Nation is
not a transmission customer of National Grid, and therefore National Grid believes that
the Nation is arguably not a “customer” as contemplated in the discussion of
jurisdictional CIAC agreements in the Prior Notice Order, National Grid recognizes that
there is a possibility that the Commission could nevertheless find the Reimbursement
Agreement to be a jurisdictional CIAC agreement that must be filed.  For these reasons,
National Grid is filing the Reimbursement Agreement for Commission acceptance out of
an abundance of caution.

The price of the services to be performed pursuant to the Reimbursement

Agreement will be just and reasonable because National Grid will perform these services
at actual cost.8  The Commission should therefore accept the Reimbursement Agreement.

III. Effective Date and Request for Waiver

Pursuant to Section 35.11 of the Commission’s regulations,9 National Grid

respectfully requests waiver of the notice requirement contained in Section 35.3 of the

Commission’s regulations10 to allow the Reimbursement Agreement to become effective upon the effective date set forth in the agreement, i.e., December 14, 2015.11

Good cause exists for the Commission to grant this waiver.  Granting the waiver will accord with the intent of National Grid and the Nation to make the Reimbursement Agreement effective as of December 14, 2015, as stated in the Reimbursement
Agreement.  Therefore, no prejudice will result to any Party from granting the waiver. For these reasons, the Commission should find that good cause exists to grant an
effective date of December 14, 2015.

IV.Attachment

In addition to this transmittal letter, this filing includes the Reimbursement Agreement that is provided in Attachment A hereto.

8

See Reimbursement Agreement, Article 1.0 at definition of “Company Reimbursable Costs.”

Section 7.2 of the Reimbursement Agreement provides that, once the Commission has granted approval of
the Reimbursement Agreement without condition or modification, the Nation will provide a prepayment of
$65,000 (“Project Plan Prepayment”) to National Grid.  In accordance with this Section 7.2, National Grid
has not collected the Project Plan Prepayment (or any other funds) pursuant to the Reimbursement
Agreement.

9

10

11

18 C.F.R. § 35.11.

18 C.F.R. § 35.3.
Section 2.1 of the Reimbursement Agreement states that the agreement “shall become effective as

of the Effective Date,” which is defined in Article 1.0 of the Reimbursement Agreement as the date specified in the preamble of the agreement, i.e., December 14, 2015.

The Honorable Kimberly D. Bose February 22, 2016

Page 4

V.Communications and Service

Communications regarding this filing should be addressed to the following

individuals, whose names should be entered on the official service list maintained by the

Secretary for this proceeding:

Amanda C. DowneySean Atkins

CounselBradley R. Miliauskas

National Grid USAAlston & Bird LLP

Service Company, Inc.The Atlantic Building

40 Sylvan Road950 F Street, NW

Waltham, MA  02451Washington, DC  20004

(781) 907-2136(202) 239-3300

amanda.downey@nationalgrid.comsean.atkins@alston.com

bradley.miliauskas@alston.com

Kathryn Cox-Arslan

Director, Transmission Commercial National Grid USA

40 Sylvan Road

Waltham, MA  02451 (781) 907-2406

kathryn.cox@nationalgrid.com

Copies of this filing have been served on the Nation, the NYISO, and the New York Public Service Commission.

VI.Conclusion

For the reasons stated herein, National Grid respectfully requests that the

Commission accept the Reimbursement Agreement effective as of December 14, 2015.

Respectfully submitted,

/s/ Amanda C. Downey

Amanda C. 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