Christopher J. Novak

Senior Counsel

October 25, 2019

The Honorable Kimberly D. Bose Secretary

Federal Energy Regulatory Commission 888 First Street, NE

Washington, DC 20426

Re: Niagara Mohawk Power Corporation
Docket No. ER20-____-000

Filing of Large Generator Interconnection Agreement with Black River Hydroelectric, 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 Large Generator
Interconnection Agreement (“LGIA”) between Niagara Mohawk and Black River
Hydroelectric, LLC (“Black River”). The attached LGIA (the “Black River LGIA”) is
designated as Service Agreement No. 2485 under the New York Independent System
Operator, Inc.’s (“NYISO”) Open Access Transmission Tariff (“OATT”).

The Black River LGIA is an undisputed agreement between Niagara Mohawk and Black River for the continued provision of interconnection service to the generating
facility owned by Black River and located in Jefferson County, New York. Niagara
Mohawk requests that the Commission accept the Black River LGIA as of the effective date set forth therein, September 30, 2019.

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.

Black River owns and operates a 32.65 MW hydroelectric facility located in Jefferson County, New York (the Facility).

Niagara Mohawk and Black River are already parties to an interconnection

agreement for Niagara Mohawk to provide interconnection service to the Facility using
the transmission system owned by Niagara Mohawk (Prior Interconnection Agreement).

The Honorable Kimberly Bose October 25, 2019

Page 2

The Commission accepted the Prior Interconnection Agreement for filing effective as of September 30, 1999.3 Section 10.1 of the Prior Interconnection Agreement states that it will continue in effect for 20 years (i.e., until September 30, 2019), at which time the parties will negotiate a new interconnection agreement.

II.The Black River LGIA

Niagara Mohawk and Black River have entered into the Black River LGIA to

provide for continued interconnection service to the Facility using the transmission

system owned by Niagara Mohawk, pursuant to the terms of the Black River LGIA. The parties intend the Black River LGIA to supersede the Prior Interconnection Agreement effective as of September 30, 2019, as set forth in the Black River LGIA.4

With minor variations, the Black River LGIA follows the pro forma NYISO
LGIA set forth in Appendix 6 of Attachment X to the NYISO OATT. The main
difference between the Black River LGIA and the pro forma NYISO LGIA is that the
Black River LGIA is a two-party agreement between the transmission owner (Niagara
Mohawk) and the generation facility owner (Black River), whereas the pro forma NYISO
LGIA is a three-party agreement among the transmission owner, the generation facility
owner, and the NYISO.5

Commission precedent supports acceptance of the Black River LGIA as a two-
party agreement. In proceedings on two-party LGIAs between Niagara Mohawk and
generation subsidiaries of Alliance Energy that were modeled on the pro forma NYISO
LGIA (collectively, the “Alliance Energy LGIAs”),6 the Commission found that the
NYISO did not need to be a party to the two-party Alliance Energy LGIAs, 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.

Niagara Mohawk Power Corp., Commission Letter Order, Docket No. ER99-4368-000 (Sept. 29,

The Honorable Kimberly Bose October 25, 2019

Page 3

Accordingly, we will not require NYISO to be a signatory to these unexecuted IAs.7

Like the Alliance Energy LGIAs, the Black River LGIA is not a new generator

interconnection agreement of the type envisioned by Order No. 2003. Instead, the Black
River LGIA 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 Facility to the Niagara Mohawk transmission system.
Therefore, the Commission should accept the Black River LGIA as a two-party
agreement.

The pro forma NYISO LGIA contains a number of provisions that are applicable to new interconnections but are not applicable to existing interconnections, such as the
interconnection of the Facility. However, Niagara Mohawk and Black River have agreed to retain those provisions in the Black River LGIA.8 This approach is consistent with the approach authorized in PJM Interconnection, L.L.C.9 In that order, the Commission
rejected a proposal to delete inapplicable provisions from an LGIA, stating that “[i]f a
provision of a contract is not applicable, it is not applicable,” and concluding that
“[u]nless confusion is likely, modifications to a pro forma agreement that ‘clarify’
matters not in doubt are not necessary.”10

Niagara Mohawk and Black River have agreed to a twenty-year term for the
Black River LGIA.11 Niagara Mohawk and Black River have also included clarifying
provisions in the Black River LGIA that differ from provisions in the pro forma NYISO
LGIA. In Article 27.2, the parties have agreed to have a third arbitrator selected by the
first two arbitrators chosen by the parties, because this is a two-party agreement. In
Article 27.4, the parties have changed the allocation of costs for a single arbitrator from
one-third per party to one-half per party, because the Black River LGIA is a two-party
rather than a three-party agreement. In Appendix E to the Black River LGIA, the parties
have replaced the developer certification statement concerning Trial Operation and
commencement of Commercial Operation with a statement that Black River commenced
Commercial Operation of the Facility in 1986. Each of the Alliance Energy LGIAs
accepted by the Commission contained similar clarifying provisions. In new Appendix G
to the Black River LGIA, the parties have clarified that, in accordance with Article 10.5

omitted). The Commission also stated that “any interconnections involving the interconnection of a new generating facility or involving increases in capacity or material modifications to the operating
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 Facility is already interconnected to the transmission system owned by Niagara Mohawk, and there has been no increase in capacity or material modifications to the operating characteristics of the Facility. Therefore, the NYISO does not need to be a signatory to the Black River LGIA.

The Honorable Kimberly Bose October 25, 2019

Page 4

of the Black River LGIA, Black River will be responsible for all reasonable operation

and maintenance (O&M) expenses and will have the option to pay them either as a fixed, ongoing charge or as annual actual O&M expenses.

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.12 As discussed above,
the Black River LGIA is intended to go into effect as of September 30, 2019, i.e., fewer
than 30 days after the date the Black River LGIA is being filed. Therefore, Niagara
Mohawk requests that the Commission accept the Black River LGIA effective September
30, 2019.

IV.Documents Enclosed

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

i.The Black River LGIA (Service Agreement No. 2485 under the NYISO

OATT), provided in clean format (Attachment A)

ii.Red-lined revisions showing the differences between the Black River

LGIA and the pro forma NYISO LGIA (Attachment B)

1218 C.F.R. § 35.3(a)(2).

The Honorable Kimberly Bose October 25, 2019

Page 5

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@nationalgrid.com

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

VI.Conclusion

For the reasons stated herein, Niagara Mohawk respectfully requests that the Commission accept the Black River LGIA effective as of September 30, 2019.

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