Christopher J. Novak

Senior Counsel

November 9, 2017

The Honorable Kimberly D. Bose Secretary

Federal Energy Regulatory Commission 888 First Street, NE

Washington, DC  20426

Re:   Niagara Mohawk Power Corporation
Docket No. ER18-____-000

Filing of Reimbursement Agreement with
Mid-Atlantic Interstate Transmission, LLC

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 (“Niagara Mohawk”) submits a letter agreement (“Reimbursement
Agreement”) between Niagara Mohawk and Mid-Atlantic Interstate Transmission, LLC
(“MAIT”).3  The Reimbursement Agreement is designated as Service Agreement No.
2386 under the New York Independent System Operator, Inc.’s (“NYISO”) Open Access
Transmission Tariff.

The Reimbursement Agreement is an undisputed agreement to facilitate the

performance of certain work that Niagara Mohawk is required to do as a result of MAIT’s upgrades to its Erie East 230 kV Substation.  Niagara Mohawk requests that the
Commission grant acceptance of the Reimbursement Agreement effective as of October 11, 2017, the effective date agreed to by the Parties.

I.Background

Niagara Mohawk is a public utility subject to the Commission’s jurisdiction that
owns transmission facilities located in New York which have been placed under the
operational control of the NYISO.  MAIT is a public utility subject to the Commission’s
jurisdiction that owns and operates transmission facilities located in Pennsylvania which
have been placed under the functional control of PJM Interconnection, L.L.C. (“PJM”).

1

2

3

16 U.S.C. § 824d.

18 C.F.R. Part 35.
Together, Niagara Mohawk and MAIT are referred to in the Reimbursement Agreement and in this

transmittal letter as the “Parties.”

40 Sylvan Road, Waltham, MA 02451

 T: 781-907-2112  F: 781-907-5701  Chris.Novak@nationalgrid.com  www.nationalgrid.com

The Honorable Kimberly D. Bose November 9, 2017

Page 2

Certain system protection modifications to Niagara Mohawk’s South Ripley

Substation, at its 230 kV Line 69, are required as a result of MAIT’s upgrades to its Erie East 230 kV Substation as defined in PJM Regional Transmission Expansion Plan b2371. MAIT has requested that Niagara Mohawk perform the system protection modification work pursuant to the Reimbursement Agreement.  Niagara Mohawk is willing to perform this work, subject to reimbursement by MAIT of all costs and expenses incurred by
Niagara Mohawk in connection with the work.

II. Description of the Reimbursement Agreement and Filing Requirements

Pursuant to the Reimbursement Agreement, MAIT will reimburse Niagara

Mohawk 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 MAIT.  The Reimbursement Agreement includes
provisions addressing the performance of the work, liability and indemnification, force
majeure, and various other standard provisions included in 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.4  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.5  Commission precedent also indicates that engineering and pre-construction
agreements related to jurisdictional facilities can be construed as CIAC agreements.6

The Reimbursement Agreement relates to Niagara Mohawk’s recovery of costs for
performing system protection modifications on transmission facilities as described in the
Reimbursement Agreement that are required due to MAIT’s upgrades to the Erie East 230
kV Substation.  Niagara Mohawk recognizes that the Commission may find the
Reimbursement Agreement to be a jurisdictional CIAC agreement that must be filed.  For
these reasons, Niagara Mohawk is filing the Reimbursement Agreement for Commission
acceptance.

4

5

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”).

6

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 November 9, 2017

Page 3

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

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

III.Effective Date

The Commission’s regulations require service agreements to be filed not more
than 30 days after service under the agreements has commenced.7  As discussed above,
the Parties intend the Reimbursement Agreement to go into effect as of October 11, 2017,
i.e., fewer than 30 days before the date the Reimbursement Agreement is being filed.8

IV.Attachment

In addition to this transmittal letter, this filing includes the Reimbursement

Agreement that is provided in Attachment A hereto.

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:

Christopher J. NovakSean Atkins

Senior 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) 907-2112(202) 239-3300

Chris.Novak@nationalgrid.comsean.atkins@alston.com

bradley.miliauskas@alston.com

Kathryn Cox-Arslan

Director, Commercial Services National Grid USA

40 Sylvan Road

Waltham, MA  02451 (781) 907-2406

kathryn.cox-arslan@nationalgrid.com

Copies of this filing have been served on MAIT, the NYISO, and PJM.

7

8

18 C.F.R. § 35.3.
Section 1 of the miscellaneous provisions in the Reimbursement Agreement states that the

agreement will become effective as of the date of the agreement, which is October 11, 2017.

The Honorable Kimberly D. Bose November 9, 2017

Page 4

VI.Conclusion

For the reasons stated herein, Niagara Mohawk respectfully requests that the
Commission accept the Reimbursement Agreement effective as of October 11, 2017.

Respectfully submitted,

/s/ Christopher J. Novak

Christopher J. Novak Senior Counsel

National Grid USA

Service Company, Inc.

40 Sylvan Road

Waltham, MA 02451

Attorney for Niagara Mohawk Power Corporation