May 18, 2017

By Electronic Delivery

Honorable Kimberly D. Bose, Secretary Federal Energy Regulatory Commission 888 First Street, NE

Washington, DC 20426

Re: Notice of Cancellation of Service Agreement No. 1483 to the New York
Independent System Operator, Inc. Open Access Transmission Tariff,
Docket No. ER17-___-000

Dear Secretary Bose:

Pursuant to Section 205(d) of the Federal Power Act1 and Sections 35.9 and 35.15 of the
Commission’s Regulations,2 the New York Independent System Operator, Inc. (“NYISO”)
hereby tenders for filing and acceptance a Notice of Cancellation of a Small Generator
Interconnection Agreement among the NYISO, Niagara Mohawk Power Corporation d/b/a
National Grid (“National Grid” or “Connecting Transmission Owner”) as the Connecting
Transmission Owner, and Green Power Energy LLC (“Green Power” or “Interconnection
Customer”) as the Interconnection Customer (hereinafter the “SGIA”).3 The SGIA is designated
as Service Agreement No. 1483 in the NYISO’s Open Access Transmission Tariff (“OATT”)
and relates to the Interconnection Request referred to as Queue Number 180A.

Pursuant to Section 3.3.2 of the SGIA, the NYISO and National Grid respectfully request that the Commission accept this Notice of Cancellation of Service Agreement No. 1483 effective as of July 17, 2017 - sixty days from the date of this filing. Pursuant to the terms of the SGIA in Section 7.6.3, the SGIA terminates upon withdrawal from the interconnection queue.

I.Background

This Notice of Cancellation comes after years of delay by the Interconnection Customer

related to its Interconnection Request with little progress on the construction of the proposed

Honorable Kimberly D. Bose May 18, 2017

Page 2

generating facility. Green Power entered the NYISO’s interconnection queue in 2005 with a

proposed wind generating facility that would have a planned capacity of 10 MW to be owned

and operated by Green Power and located in Madison County, New York (“Green Power

Project”). The Green Power Project went through the NYISO’s Small Generator Interconnection
Procedures (“SGIP”) as a “transition project” under Section 32.1.7 of Attachment Z and had the
designated queue position number 180A. As a transition project, the Interconnection Customer
completed some of its interconnection studies with the Connecting Transmission Owner prior to
the effective date of the SGIP. The Interconnection Facilities Study was completed pursuant to
the SGIP on May 27, 2009. Thereafter, on August 20, 2009, the NYISO, National Grid, and

Green Power executed the SGIA for the project. The SGIA, designated as Service Agreement No. 1483, was filed as a non-conforming SGIA in Docket Number ER09-1693-000 and was approved by the Commission on October 13, 2009.4

As of the date of this filing, no portion of the Green Power Project has been built, the first engineering package for the Connecting Transmission Owner Attachment Facilities and stand-
alone System Upgrade Facilities have not been completed and delivered to the Connecting
Transmission Owner, and the foundations have yet to be poured. According to the original
construction and procurement schedule in the SGIA, the Green Power Project was to be in
commercial operation by October 2010. By mutual agreement, the parties to the Interconnection Agreement extended the Commercial Operation Date three times, with the third extension to
December 2013. After Green Power failed to meet the December 2013 Commercial Operation
Date, it submitted to the NYISO a request for a further extension of the Commercial Operation
Date to December 2014. The NYISO denied the extension under a recently revised section of its interconnection procedures for extending the Commercial Operation Date, and removed the
Green Power Project from the interconnection queue.5

In April 2014, Green Power filed with the Commission a request for a waiver of the

Commercial Operation Date requirements under Attachments X and Z to the OATT; to extend
the Commercial Operation Date for the Green Power Project to no later than 15 months from the
date of a Commission order granting the requested waiver; and to direct the NYISO to restore
Green Power Project’s position in the NYISO’s interconnection queue. The Commission
granted Green Power’s application in an order issued on April 30, 2014,6 noting that the three
prior extensions granted by the NYISO did not require Green Power to demonstrate progress in
meeting milestones and that “Green Power could not have known that the failure to amend the
milestones in its SGIA would, because of future NYISO tariff revisions, later preclude it from

4 Letter Order, Docket No. ER09-1693-000 (October 13, 2009).

5 See Section 30.4.4.5 of Attachment X to the OATT; Section 32.1.3.2 of Attachment Z to the OATT; see generally New York Indep. Sys. Operator, Inc., 142 FERC ¶ 61,113 (2013).

6 Green Power Energy LLC, Waiver Application (April 3, 2014). In Green Power’s application for a waiver filed in 2014, it explained that it would seek a commercial operation date as soon as
December 31, 2014, but National Grid required 15 months following the Commission’s action to
construct the necessary interconnection upgrades. See id. at p 9.

Honorable Kimberly D. Bose May 18, 2017

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receiving further extensions.”7 The Commission further stated that good cause existed to grant the waiver because the extension was of a limited duration to accommodate National Grid’s construction schedule and it would not prejudice third parties.8

The 15-month extension granted by the Commission pursuant to a waiver expired on July
31, 2015. Prior to the expiration of the Commission-granted extension, Green Power sought an
additional extension and provided certain supporting documentation, including a Turbine Supply
Agreement by and between Gamesa Wind US LLC and Green Power and five purchase orders
for various equipment, claiming that the project had made certain progress in pre-construction
activities and procurement.9 Based on the representations made by Green Power about the

provided documentation and its progress - namely, execution of a Turbine Supply Agreement -
the NYISO granted a subsequent extension of the Commercial Operation Date to July 2016.

In July 2016, Green Power sought another 15-month extension of the Commercial

Operation Date until November 2017. The NYISO granted a limited extension until January 31,
2017, contingent upon Green Power meeting specific milestones proposed by Green Power and
that Green Power represented it would satisfy by January 31, 2017. These milestones broke
down into numerous sub-tasks certain upcoming milestones, such as (i) the submission of the
first engineering package for the Connecting Transmission Owner Attachment Facilities and
Stand Alone System Upgrade Facilities, which was required to be complete by December 2016;
and (ii) the construction of the generating facility, which required completion of the turbine
foundations by mid-November 2016. Milestone 9 in this schedule broke down the first
engineering package for the Connecting Transmission Owner Attachment Facilities and Stand
Alone System Upgrade Facilities into 36 separate sub-tasks, all of which Green Power
anticipated completing by December 31, 2016. Yet as of February 1, 2017, Green Power
represented to the NYISO and to National Grid that only 11 of the 36 subtasks had been
completed. In September 2016, Green Power represented to the NYISO and National Grid that
all of the following tasks would be completed prior to the date of this filing:

 First engineering package for the Connecting Transmission Owner Attachment Facilities
and Stand Alone System Upgrade Facilities;

 Completion of engineering for Interconnection Customer Interconnection Facilities;

 Notice to Proceed with Construction from Chief of Environmental Certification and
Compliance;

7 Green Power Energy LLC, 147 FERC ¶ 61,084 (2014), at P 12.

8 Id. at PP 13-14.

9 It later came to the attention of the NYISO and National Grid that the Turbine Supply

Agreement may no longer be valid because Green Power was required to provide a notice to proceed no later than February 24, 2014 with a $13 million deposit and there is no information that Green Power provided such notice and deposit, pursuant to Articles 2 and 6 of the agreement.

Honorable Kimberly D. Bose May 18, 2017

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 Commencement of construction of Interconnection Customer’s Interconnection
Facilities;

 Completion of engineering for System Upgrade Facilities, including Stand Alone System
Upgrade Facilities;

 Commencement of construction of System Upgrade Facilities, including Stand Alone
System Upgrade Facilities;

 Completion of procurement for Interconnection Customer Interconnection Facilities; and  Completion of erection of turbines.

As of the date of this filing, based on Green Power’s representations, none of those milestones have been satisfied.

II.Notice of Cancellation

Commission precedent supports acceptance of a notice of cancellation of a service

agreement if the applicant shows that the proposed cancellation is not unjust, unreasonable,

unduly discriminatory, or preferential, or if it is consistent with public interest.10 Pursuant to this
standard, the Commission should accept this Notice of Cancellation of Service Agreement No.
1483 because Green Power’s Interconnection Request was properly withdrawn pursuant to
Commission-approved tariff requirements set forth in Section 32.1.3.2 of Attachment Z to the
OATT with respect to its requested extension of the Commercial Operation Date beyond January
31, 2017.

An Interconnection Customer of a proposed small generation facility that wishes to

extend the Commercial Operation Date must comply with the provisions contained in the

NYISO’s Small Generator Interconnection Procedures under Attachment Z to the OATT.11

Section 32.1.3.2 of Attachment Z refers to the requirements in Section 30.4.4.5 of Attachment X
that specify permissible extensions of Commercial Operation Date. A Small Generating Facility
such as the Green Power Project may extend its Commercial Operation Date up to four years
following the tender of its Interconnection Agreement, but extensions beyond such date are only
permitted if the project developer: (a) has an executed Interconnection Agreement (or filed an
unexecuted agreement with the Commission) and (b) demonstrates through an officer
certification that the project has made “reasonable progress against milestones set forth in the
Interconnection Agreement.”12 Any request for an extension that does not satisfy the conditions

10 Midcontinent Indep. Sys. Operator, Inc., 147 FERC ¶ 61,198 (2014), at P 28 (citing Commission precedent).

11 Section 32.1.3.2 of Attachment Z to the OATT.

12 Section 30.4.4.5.2 of Attachment X to the OATT.

Honorable Kimberly D. Bose May 18, 2017

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set forth in Section 30.4.4.5.2 of Attachment X requires withdrawal from the NYISO’s interconnection queue.13

Under Section 7.6.3 of the SGIA, “if the Interconnection Request is withdrawn or

deemed withdrawn pursuant to the SGIP during the term of th[e] Agreement, th[e] Agreement shall terminate.”14 Termination of an SGIA will become effective after the parties have
complied with “all Applicable Laws and Regulations applicable to such termination, including the filing with the Commission of a notice of cancellation of the SGIA (if required), which notice has been accepted for filing by the Commission.”15

On January 30, 2017, Green Power requested its seventh extension of the Commercial

Operation Date for the Green Power Project until January 2018. Green Power provided minimal additional evidence of progress against the milestones set forth in the SGIA or the milestones that Green Power agreed to satisfy as a condition of its latest extension. Specifically, the
foundations have yet to be excavated or poured and Green Power has not submitted the first engineering package to National Grid for the Connecting Transmission Owner Attachment
Facilities and Stand Alone System Upgrade Facilities. Due to the lack of progress against the milestones, the NYISO informed Green Power on February 17, 2017 that its Interconnection Request for the project was withdrawn because the project failed to make the requisite
demonstration of reasonable progress against the applicable milestones.

Moreover, the Green Power Project has received numerous and continuing extensions of
its Commercial Operation Date, despite repeated assertions that previous extensions were limited
in scope. The NYISO and National Grid submit that the numerous extensions of the Commercial
Operation Date and the failure of Green Power to demonstrate any reasonable progress during
the previous extensions demonstrates a lack of readiness and certainty that the project will be
able to meet any further extensions of the Commercial Operation Date. Even setting aside the
failure to have poured the foundations or submit the first engineering package to National Grid
for the Connecting Transmission Owner Attachment Facilities and Stand Alone System Upgrade
Facilities, numerous other milestones proposed by the Interconnection Customer as a condition
of its latest extension of the Commercial Operation Date have similarly passed as of the date of
this filing that are unconnected with any actions of the Connecting Transmission Owner. For
example, the turbines were to be delivered by May 1, 2017 and erected by May 2, 2017.
However, Green Power has represented that the Turbine Supply Agreement it provided as the
basis for a prior extension request is no longer valid and that it has yet to enter into another
Turbine Supply Agreement. There are, therefore, no turbines on site and no agreement for the
procurement of turbines.

13 Section 32.1.4 of Attachment Z to the OATT.

14 Section 3.3.2 of the SGIA (stating that any party may terminate the SGIA after default pursuant to Article 7.6).

15 Section of the SGIA.

Honorable Kimberly D. Bose May 18, 2017

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Based on the Commission’s 2010 Order and previous requests for waivers under

Attachment X and Z to the OATT, Green Power was on notice that future extensions required a
showing that the project made reasonable progress compared against its milestones, which it has
failed to do. Moreover, an extension of the Commercial Operation Date at this point could begin
to impact other projects in the NYISO’s interconnection queue that will be connecting near
Fenner/Cortland since Green Power Project’s System Upgrade Facilities would be modeled in
the Class Year 2017 base case and Green Power has not posted security for its System Upgrade
Facilities to date.

The NYISO issued a withdrawal notice to Green Power (provided in Attachment II) on February 17, 2017, based on Green Power’s failure to make the requisite demonstration pursuant to Section 30.4.4.5.2.2 that it has made reasonable progress against milestones set forth in the
Interconnection Agreement - neither against the milestones in the original Interconnection
Agreement nor against the draft milestones proposed by Green Power for inclusion in an
Amended and Restated Interconnection Agreement, the draft of which the parties have been
unable to finalize due to the continued delays in the Project’s schedule and resulting repeated and ongoing modifications of the project milestones.

III.Documents Submitted

The NYISO respectfully submits the following documents with this filing letter:

1.This filing letter;

2.Notice of Cancellation of Service Agreement No. 1483 (Attachment I); and

3.Notice of Withdrawal dated February 17, 2017 (Attachment II).

IV.Communications and Correspondence

All communications and service in this proceeding should be directed to:

For the NYISO

Robert E. Fernandez, General Counsel

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

* Brian R. Hodgdon, Attorney

10 Krey Boulevard

Rensselaer, NY 12144
Tel: (518) 356-6000
skeegan@nyiso.com
bhodgdon@nyiso.com

* Kathryn Cox-Arslan

Director, Transmission Commercial National Grid USA

40 Sylvan Road

Waltham, MA 02451
Tel: (781) 907-2406

kathryn.cox@nationalgrid.com

* David C. Lodemore Senior Counsel

National Grid USA
Service Company, Inc.

40 Sylvan Road

Waltham, MA 02451 Tel: (781) 907-3704

david.lodemore@nationalgrid.com

For Green Power Energy LLC

* David Senehi

Green Power Energy LLC 3633 Cody Road

Cazenovia, NY 13035
Tel: (315) 952-6385

davidsenehi@localnet.com

*Persons designated for receipt of service.

V.Effective Date

Pursuant to Section 3.3 of the SGIA, the NYISO and National Grid respectfully request that the Commission accept this Notice of Cancellation of Service Agreement No. 1483,
effective July 17, 2017 - sixty days from the date of this filing.

VI.Service

In addition to the representatives of National Grid and Green Power designated above for
receipt of 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, the complete filing will be posted on the NYISO’s website at www.nyiso.com.

Honorable Kimberly D. Bose May 18, 2017

Page 8

VII. Conclusion

For the reasons stated above, the NYISO and National Grid respectfully request that the
Commission accept this Notice of Cancellation of Service Agreement No. 1483, effective July
17, 2017.

Respectfully submitted,

/s/ Sara B. Keegan

Sara B. Keegan, Senior Attorney Brian Hodgdon, Attorney

New York Independent System Operator, Inc.

10 Krey Blvd.

Rensselaer, New York 12144 (518) 356-6000

skeegan@nyiso.com
bhodgdon@nyiso.com

cc:Michael Bardee

Nicole Buell

Anna Cochrane
Kurt Longo

David Morenoff
Daniel Nowak
Larry Parkinson

J. Arnold Quinn
Douglas Roe

Kathleen Schnorf
Jamie Simler

Gary Will

UNITED STATES OF AMERICA
BEFORE THE

FEDERAL ENERGY REGULATORY COMMISSION

)

New York Independent System Operator, Inc.)Docket No. ER17-___-000

)

NOTICE OF CANCELLATION

Notice is hereby given that effective July 17, 2017, the Interconnection Agreement

among the New York Independent System Operator, Inc. (“NYISO”), Niagara Mohawk Power
Corporation d/b/a National Grid (“National Grid”), and Green Power Energy LLC (“Green
Power”), designated as Service Agreement No. 1483 under the NYISO’s Open Access
Transmission Tariff, effective August 20, 2009, and filed with the Federal Energy Regulatory
Commission by the NYISO and National Grid in Docket No. ER09-1693-000, is to be cancelled.

Notice of the proposed cancellation has been served upon the Parties to the above-

reference Interconnection Agreement, as well as upon the official representative of each of the
NYISO’s customers, to each participant on the NYISO’s stakeholder committees, to the New
York State Public Service Commission, and to the New Jersey Board of Public Utilities.

New York Independent System Operator, Inc.

By:/s/ Zachary Smith

Zachary Smith

Vice President, System & Resource Planning

10 Krey Boulevard  Rensselaer, NY 12144

February 17, 2017

Via Electronic Mail to davidsenehi@localnet.com David M. Senehi

Green Power Energy, LLC 3633 Cody Road

Cazenovia, NY 13035

Subject: Withdrawal of the Queue No. 180A Cody Road Wind Farm Project Dear Mr. Senehi:

This letter serves to inform you that effective as of the date of this letter, the Interconnection Request of the
above-referenced project (“Project”) has been withdrawn by the New York Independent System Operator,
Inc. (“NYISO”) pursuant to Section 32.1.3.2 of the NYISO’s Small Generator Interconnection Procedures
(“SGIP”) contained in Attachment Z of the NYISO’s Open Access Transmission Tariff (“OATT”).

Section 32.1.3.2 of Attachment Z provides that extensions of Commercial Operation Date for Small

Generating Facilities are subject to the provisions of Section 30.4.4.5 of Attachment X of the OATT. This
Project has failed satisfy the requirements of Section 30.4.4.5 with respect to its requested extension of
Commercial Operation Date. Specifically, the Project has not made the requisite demonstration pursuant to
Section 30.4.4.5.2.2 that it has made reasonable progress against milestones set forth in the Interconnection
Agreement - neither against the milestones in the original Interconnection Agreement currently in effect
among Green Power Energy, LLC, NYISO and Niagara Mohawk Power Corporation d/b/a National Grid
(“National Grid”), nor against the draft milestones proposed by you for inclusion in an Amended and
Restated Interconnection Agreement, the draft of which the parties have been unable to finalize due to the
continued delays in the Project’s schedule and resulting repeated and ongoing modifications of the project
milestones. Therefore, Section 32.1.3.2 of Attachment Z of the OATT requires that the Project be
withdrawn.

In the absence of specific withdrawal and cure provisions in the pro forma SGIP, the NYISO relies on

Section 30.3.6 of the Large Facility Interconnection Procedures, which provides a Project fifteen Business Days from receipt of a withdrawal letter “to either respond with information or actions that cure the
deficiency or to notify the NYISO of its intent to pursue Dispute Resolution.” To the extent you intend to provide such documentation or pursue Dispute Resolution, please do so via email to
InterconnectionSupport@nyiso.com on or before March 13, 2017.

Regards,

Jessica Gamache

Interconnection Process Coordinator

Cc: Kathryn Cox, National Grid (via email)

Daniel DiMarco, National Grid (via email

Carol Muessigbrodt, National Grid (via email)