BOSTON CONNECTICUT FLORIDA NEW JERSEY NEW YORK WASHINGTON, DC

EVAN C. REESE III

Attorney at Law

555 11th Street NW

Washington, DC 20004-1300 T: (202) 218-3917 F: (202) 513-8952
ereese@daypitney.com

June 26, 2020

VIA eFILING

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

Washington, DC 20426

Re: New York Independent System Operator, Inc., et al.
Compliance Filing of New York Transco, LLC
Docket No. ER15-572-___

Dear Secretary Bose:

At the request of the New York Independent System Operator, Inc. (“NYISO”), and in compliance with the November 16, 2017, Letter Order issued by the Federal Energy Regulatory Commission (“FERC” or “Commission”) approving the Offer of Settlement (“Settlement”)
between New York Transco, LLC (“NY Transco”) and the other signatories to the Settlement1 in Docket No. ER15-572,2 NY Transco hereby submits this clarifying filing with revisions to the NYISO Open Access Transmission Tariff (“OATT”) to avoid any potential confusion as to the proper cost allocation mechanism for the NY Transco transmission facilities.3

1 The signatories to the Settlement are Central Hudson Gas and Electric Corporation; Consolidated Edison
Company of New York, Inc.; Niagara Mohawk Power Corporation d/b/a National Grid; NY Transco;
New York State Electric and Gas Corporation; Orange and Rockland Utilities, Inc.; Rochester Gas and
Electric Corporation; New York Power Authority; Power Supply Long Island; New York Public Service
Commission (New York Commission); City of New York; Municipal Electric Utilities Association of
New York; and Multiple Intervenors, an unincorporated association of approximately 60 industrial,
commercial, and institutional energy consumers with manufacturing and other facilities located
throughout New York State.

2 New York Independent System Operator, Inc., Letter Order, 161 FERC ¶ 61,161 (Nov. 16, 2017) (“Settlement Order”).

3 NYISO submits this filing on behalf of NY Transco in its role as the administrator of the NYISO OATT.
Capitalized terms not otherwise defined herein shall have the meaning specified in the NYISO OATT.

New York Transco Compliance Filing June 26, 2020

Page 2

Section 31.8 of Appendix E of Attachment Y to the NYISO OATT is intended to identify all cost allocation methodologies approved by the Commission for projects selected in response to Public Policy Transmission Needs that utilize a methodology other than the default load ratio share methodology set forth in Section 31.5.5.4.3 of Attachment Y to the NYISO OATT.
Section 31.5.5.4 of Attachment Y to the NYISO OATT establishes that the “cost allocation
methodology that is accepted or approved by the Commission for a particular Public Policy
Transmission Project in accordance with this Section 31.5.5.4 will be set forth in Appendix E
(Section 31.8) of this Attachment Y.”

Section 31.8.2 of the NYISO OATT includes the Commission-approved cost allocation
methodology associated with the AC Transmission Public Policy Transmission Need identified
by the New York Public Service Commission (“AC Transmission Projects”). Section 31.8.2
provides: “The ISO will apply the cost allocation methodology set forth under this Section 31.8.2
of Appendix E in the absence of the Commission accepting a different methodology.”4 As noted
below, the Commission did accept a different cost allocation methodology that is included in
Section 36.2.1.2 of Attachment DD to the NYISO OATT related to NY Transco’s development
of a segment of the AC Transmission Projects.5 NYISO has recently determined that, in order to
avoid confusion, a reference to Section 36.2.1.2 should be included in Section 31.8. This filing
accomplishes that request.

I.BACKGROUND

On December 4, 2014, NY Transco submitted a filing in the above-referenced proceeding
requesting that the Commission (1) approve certain incentive rate treatments pursuant to Section
219 of the Federal Power Act (“FPA”) and Commission Order No. 679 for its anticipated
investment in what has become known as the Transmission Owner Transmission Solutions
projects (“TOTS Projects”) and the projects related to the AC Transmission Projects; (2) accept a
proposed transmission formula rate and implementation protocols for recovery of NY Transco’s
revenue requirements (“Formula Rate”); (3) approve NY Transco’s requested base return on
equity (“ROE”) component; (4) accept a cost allocation methodology to recover NY Transco’s
revenue requirements from NYISO customers; and (5) accept proposed revisions to the NYISO
OATT to include a Transco Facilities Charge (“TFC”) under Rate Schedule 13 (Section 6.13)
and the Formula Rate and proposed cost allocation methodology in Attachment DD (Section
36).6

4 NYISO OATT, Attachment Y, Appendix E, Section 31.8.2.

5 NYISO OATT, Attachment DD, Section 36.2.1.2.

6 See Filing Letter, Docket No. ER15-572-000 (December 4, 2014).

New York Transco Compliance Filing June 26, 2020

Page 3

On August 21, 2017, NY Transco submitted an Offer of Settlement resolving all of the remaining issues then pending and related to the AC Transmission Projects. Because the AC Transmission Projects had not yet been selected pursuant to the requirements of the NYISO’s Public Policy Transmission Planning Process, the Settlement stipulated that, if NY Transco were selected to build any portion of the AC Transmission Projects, NY Transco would make a
compliance filing after the NYISO makes its selection. The Commission approved the
Settlement in the Settlement Order and included the compliance obligation.7

On April, 8, 2019, pursuant to the NYISO’s Public Policy Transmission Planning Process
set forth in Section 31.4 of Attachment Y of the NYISO OATT, the NYISO Board of Directors
(“Board”) selected the New York Energy Solution project proposed jointly by Niagara Mohawk
Power Corporation d/b/a National Grid (“National Grid”) and NY Transco as the more efficient
or cost-effective transmission solution to address Segment B of the identified AC Transmission
Public Policy Transmission Needs.8 In accordance with the Settlement, on May 8, 2019, NY

Transco submitted revised tariff records to the TFC under Rate Schedule 13 of the NYISO OATT (Section 6.13) and the Formula Rate and proposed cost allocation methodology in Attachment DD of the NYISO OATT (Section 36) to effectuate each of the terms of the
Settlement.9 The Commission accepted the compliance filing by Delegated Order on October 29, 2019, and granted an effective date of April 8, 2019.

NYISO has asked NY Transco to make a clarifying filing to revise Appendix E of the
NYISO OATT and provide reference to the approved cost allocation mechanism for NY
Transco’s Segment B facilities. The cost allocation mechanism was included in NY Transco’s
May 8, 2019 compliance filing and approved by the Commission. Although the Commission-
approved cost allocation methodology for NY Transco’s Segment B facilities is set forth in
Section 36.2.1.2 of Attachment DD of the NYISO OATT, this cost allocation methodology is not
currently identified in Appendix E of Attachment Y to the NYISO OATT as contemplated by
Section 31.5.5.4 of Attachment Y to the NYISO OATT. The clarifying revisions proposed by

7 At the time of filing the Settlement, NY Transco requested, and the Commission approved, waiver of

Rule 602(c)(2) of the Commission’s Rules of Practice and Procedure because the Settlement terms would only apply in the event that NY Transco was selected by NYISO to construct certain aspects of the AC Transmission Projects. 18 C.F.R. § 385.602(c)(2) (2018) (“If an offer of settlement pertains to a tariff or rate filing, the offer must include any proposed change in a form suitable for inclusion in the filed rate schedules or tariffs, and a number of copies sufficient to satisfy the requirements applicable to tariff or rate filings of the type at issue in the proceeding.”)

8 NYISO Board of Directors’ Decision on Approval of AC Transmission Public Policy Transmission
Planning Report and Selection of Public Policy Transmission Projects, April 8, 2019, available at
https://www.nyiso.com/documents/20142/1390750/Board-Decision-AC-Transmission-2019-04-

08.pdf/32323d32-f534-a790-1b03-2cb110033320.

9 Electronic Tariff Filings, Order No. 714, FERC Stats. & Regs. ¶ 31,276 (2008).

New York Transco Compliance Filing June 26, 2020

Page 4

this filing seek to ensure that the cost allocation methodology previously approved by the Commission for NY Transco’s Segment B facilities is also identified in Appendix E of Attachment Y to the NYISO OATT.

II.DESCRIPTION OF FILING

NY Transco submits certain minor revisions to Section 31.8 of the NYISO OATT.

Specifically, NY Transco proposes to make the following changes to Appendix E of Attachment Y of the NYISO OATT:10

• Section 31.8.2: Section 31.8.2 is revised to the reflect the fact that the

NYISO will apply the cost allocation methodology set forth in a new Section

31.8.3 for the selected Public Policy Transmission Project that satisfies
Segment B of the AC Transmission Public Policy Transmission Need.

• Section 31.8.3: Section 31.8.3 is a new section added to reflect the fact that
Sections 36.1.1 and 36.2.1.2 of Attachment DD to the NYISO OATT set forth
the Commission-accepted methodology for allocating the costs associated
with the Public Policy Transmission Project that satisfies Segment B of the
AC Transmission Public Policy Transmission Need.

III.CONTENTS OF FILING

This compliance filing consists of the following documents:

1. Filing Letter;

2. Certificate of Service;

3. Attachment A: Redlined version of the proposed revisions to Appendix E (Section

31.8) of the NYISO OATT; and

4. Attachment B: Clean version of the proposed revisions to Appendix E (Section 31.8)
of the NYISO OATT.

10 In addition, the section number for Section “38.1.2.3” is revised to reflect “31.8.2.3” to correct a prior typographical error.

Kathleen Carrigan

Vice President General Counsel and Regulatory Affairs

New York Transco LLC

1 Hudson City Center Hudson, NY 12534 617-455-5329

Kathleen.Carrigan@NYTransco.com

V.SERVICE

Evan C. Reese III
Sophia Browning
Day Pitney LLP

555 11th Street NW Washington, DC 20004 202-218-3900

ereese@daypitney.com
sbrowning@daypitney.com

NY Transco will serve each person designated on the official service list compiled by the
Secretary in this proceeding. This filing will be posted on the NYISO website at
www.nyiso.com, and the NYISO will send an electronic link to this filing to the official
representative of each of its customers, to the New York State Public Service Commission, and to the New Jersey Board of Public Utilities.

VI.TARIFF EFFECTIVE DATE

The Commission accepted NY Transco’s revisions to incorporate the terms of the

settlement, including the cost allocation mechanism for NY Transco’s development of Segment
B of the AC Transmission Public Policy Transmission Need, with an effective date of April 8,
2019. Because the instant filing simply seeks to revise the OATT to include a reference to the
Commission-approved cost allocation methodology specified elsewhere in the Tariff, NY
Transco requests an effective date consistent with the effective date of the approved cost
allocation mechanism - April 8, 2019. NY Transco submits that good cause exists to grant the
requested effective date because the cost allocation methodology was already clearly spelled out
in the appropriate sections of the OATT. The Commission need not be concerned about
retroactive ratemaking restrictions because the Commission-approved cost allocation mechanism
was already approved by the Commission in Section 36.2.1.2 of Attachment DD to the NYISO
OATT and NY Transco respectfully requests the Commission grant any necessary waivers for
the requested effective date.

New York Transco Compliance Filing June 26, 2020

Page 6

VII. CONCLUSION

For the foregoing reasons, NY Transco respectfully requests the Commission to accept this housekeeping filing without modification.

Respectfully submitted,

/s/ Evan C. Reese III

Evan C. Reese III
Sophia Browning

Counsel to New York Transco, LLC

Attachments

CERTIFICATE OF SERVICE

I hereby certify that I caused a copy of the foregoing document to be served

electronically upon each person designated on the official service list compiled by the Secretary of the Federal Energy Regulatory Commission.

Dated at Washington D.C. this 26th day of June, 2020.

_/s/_Sophia Browning

Sophia Browning
Day Pitney LLP
555 11th St. NW

Washington DC, 20004
Tel: (202) 218-3904

sbrowning@daypitney.com