A PROFESSIONAL CORPORATION
1050 Thomas Jefferson Street N.W.
Washington, D.C. 20007 -3877
10 KREY BOULEVARD RENSSELAER, NY 12144(202) 298-1800 Fax (202) 338-2416
www.vnf.com
November 1, 2010
By Electronic Delivery
Honorable Kimberly D. Bose, Secretary Federal Energy Regulatory Commission 888 First Street, NE
Washington, DC 20426
Re: Filing of an Executed Standard Large Generator Interconnection Agreement Among the
New York Independent System Operator, Inc., Long Island Lighting Company, d/b/a
LIPA, a wholly-owned subsidiary of Long Island Power Authority, and Long Island Solar
Farm LLC, Docket No. ER11-___-000
Dear Ms. Bose:
Pursuant to Section 205 of the Federal Power Act,1 Section 35.12 of the Commission’s
Regulations,2 and Section 11.3 of its Large Facility Interconnection Procedures (“LFIP”), the
New York Independent System Operator, Inc. (“NYISO”) hereby tenders for filing an executed
standard large generator interconnection agreement (“Interconnection Agreement”) among the
NYISO, Long Island Lighting Company d/b/a LIPA (“LIPA”) a wholly-owned subsidiary of
Long Island Power Authority (“Authority”), and the Developer,3 Long Island Solar Farm LLC
(“Long Island Solar Farm”). The Authority and LIPA join in this filing.4 With the exceptions
noted in section II of this letter, the Interconnection Agreement conforms to the NYISO’s pro
forma Large Generator Interconnection Agreement (“LGIA”) that is contained in Attachment X
of the NYISO’s OATT.
1 16 U.S.C. § 824d (2006).
2 18 C.F.R. § 35.12 (2008).
3 Capitalized terms not otherwise defined in this letter have the meaning set forth in Attachments S and X of the NYISO’s Open Access Transmission Tariff (“OATT”).
4 The Authority is a corporate municipal instrumentality and a political subdivision of the State of New York. Both the Authority and its operating subsidiary, LIPA, are non-jurisdictional municipal utilities pursuant to section 201(f) of the Federal Power Act. See New York Independent System Operator, Inc., 111 FERC ¶ 61,266 (2005).
Honorable Kimberly D. Bose November 1, 2010
Page 2
I.Background
Long Island Solar Farm’s plant will be a 31.5 MW solar facility (“Facility”). The
Facility will be located in Suffolk County, New York at the Brookhaven National Laboratory and will connect to LIPA’s existing 69 kV 8ER Brookhaven Substation, as set forth in the oneline diagram provided as Figure A-1 in Appendix A of the Interconnection Agreement.
Additional details regarding the interconnection of the Facility and its generating capability are found in Appendix C of the Interconnection Agreement.
In April 2008, the Authority issued a Request for Proposals for Solar Photovoltaic
Generating Projects (“RFP”) seeking to purchase energy and related capacity and renewable
energy certificates (“RECs”) for solar photovoltaic systems to meet LIPA’s need for a diversified portfolio of electric generation on Long Island. The Long Island Solar Farm plant was one of the projects selected by the Authority’s Board of Trustees in February 2009. Thereafter,
negotiations between the Authority and Long Island Solar Farm occurred and a resulting Power Purchase Agreement (“PPA”) was executed in February 2010.
II. Variations From the NYISO’s Pro Forma LGIA
As noted above, the Interconnection Agreement is based on the NYISO’s pro forma
LGIA; however, the parties have agreed to make a limited set of modifications to the pro forma
LGIA. These modifications are described below and are primarily necessary to reflect LIPA’s
status as a non-jurisdictional, tax exempt municipality as well as the existence of the PPA and
other related agreements between the Authority and the Long Island Solar Farm. The
Commission has accepted changes to the pro forma LGIA terms where there are unique
circumstances associated with the interconnections, including “reliability concerns, novel legal
issues or other unique factors.”5 In fact, most of the parties’ modifications to the pro forma
LGIA in this Interconnection Agreement are identical to those accepted by the Commission on
March 31, 2009 in Docket No. ER09-831-000. The NYISO respectfully requests that the
Commission accept these modifications in light of the unique factors and novel legal issues
explained below.
A. Deviations required to explicitly recognize LIPA’s status as a non-
jurisdictional, tax-exempt, municipal utility
The Interconnection Agreement includes several modifications recognizing LIPA’s status
as a non-jurisdictional municipal utility pursuant to FPA Section 201(f).6 As a municipal utility,
LIPA is not subject to certain federal and state tax laws. Further, LIPA holds, and has the
authority to issue, tax-exempt debt for use in the construction, operation and maintenance of its
transmission system. LIPA’s tax-exempt status and issuance of tax-exempt debt already is
recognized under applicable terms of the NYISO OATT and related agreements.7 In addition, as
5 See PJM Interconnection, LLC, 111 FERC ¶ 61,163 at PP-10-11, reh’g denied 112 FERC ¶ 61,282 (2005).
6 16 U.S.C. § 824(f) (2007).
7 See e.g., NYISO OATT, Section 5.2B.
Honorable Kimberly D. Bose November 1, 2010
Page 3
part of such protections, LIPA’s transmission facilities are classified as “Transmission Facilities Requiring ISO Notification.”8 Accordingly, this Interconnection Agreement includes the
following set of changes:
•The Recitals have been modified to note LIPA’s status as a non-jurisdictional
municipal utility.
• Articles 2.1, 2.3.1 and 29.13 have been modified to delete the words “Connecting
Transmission Owner” to reflect that the NYISO (in its role as the jurisdictional
public utility) is individually making required filings with the Commission
pursuant to the FPA. Article 29.13 is further modified, consistent with LIPA’s
non-jurisdictional status, to reflect that any party may make a unilateral filing
with the Commission to modify this Interconnection Agreement pursuant to FPA
Section 206.
• Article 3.1 has been modified to clarify that the filing of the Interconnection
Agreement with the Commission by the NYISO shall not be construed as a
waiver of LIPA’s status as a non-jurisdictional municipal utility pursuant to FPA Section 201(f).
• Article 5.11 has been modified to classify the Attachment Facilities and Stand
Alone System Upgrade Facilities as “Transmission Facilities Requiring ISO
Notification” as is required for purposes of the protection of LIPA’s tax-exempt status and for consistency with the treatment of all LIPA transmission facilities under the NYISO OATT.
• Article 5.17, which governs tax matters, has been deleted to reflect LIPA’s tax-
exempt status as a municipal utility. The parties have inserted the words “this Article is intentionally reserved” into Article 5.17, so the numbering for
subsequent sections does not need to be adjusted due to the deletion.
These modifications do not change the substantive procedures and standards for
interconnection. The purpose of these modifications is to properly reflect LIPA’s nonjurisdictional status.
B.Revisions to reflect the timing of the execution of the Interconnection
Agreement
Long Island Solar Farm has elected to seek both Energy Resource Interconnection
Service and Capacity Resource Interconnection Service. The Interconnection Agreement was
executed prior to completion of the Class Year study, which includes evaluation of deliverability
that determines eligibility for Capacity Resource Interconnection Service. Long Island Solar
8 See Central Hudson Gas and Electric Corp. et al, 86 FERC ¶ 61,062, 61,213 (1999); Central Hudson Gas and Electric Corp. et al, 88 FERC ¶ 61,138, 61,402 (1999); and Agreement Between New York Independent System Operator and Transmission Owners, Appendix A-2.
Honorable Kimberly D. Bose November 1, 2010
Page 4
Farm is a member of Class Year 2010. The Class Year 2010 study is not yet completed.
Accordingly, the parties have modified the Interconnection Agreement by making Article 4.1.1. subject to the requirements of Appendix C, Section 2, which indicates that the Large Generating Facility may not supply Unforced Capacity to the NYCA until the applicable deliverability
requirements are satisfied.
C. Deviations required due to the existence of related contractual agreements
LIPA and Long Island Solar Farm are parties to the PPA, an easement agreement, a
license agreement and assent agreements pertaining to the Facility, which run with the land.
Accordingly, the parties have agreed to modifications to Articles 5.12, 5.13, 28.1.3 and 29.6 to
ensure that such agreements are not inadvertently superseded by the terms of the Interconnection
Agreement. With respect to the interaction between the Interconnection Agreement and these
other existing contractual agreements, Appendix C, Section 3 indicates that “[i]t is the belief and
intention of the Parties that nothing in this [Interconnection] Agreement conflicts in any material
way” with these other agreements. Further, as reflected in Appendix C, Section 3, if the parties
become aware of a conflict, the parties will discuss “an amendment to this [Interconnection]
Agreement that would be appropriate under the circumstances.” The parties have also modified
the definitions in Article 1 to add a new defined term for “Power Purchase Agreement.”
D. Deviations required to correct errors in the pro forma LGIA
The Interconnection Agreement contains deviations to correct typographical errors in the pro forma LGIA definition of Capacity Resource Interconnection Service and Article 9.
Specifically, the introductory paragraph under Article 1. DEFINITIONS clarifies that terms used in the Interconnection Agreement with initial capitalization that are not defined in Article 1 shall have the meanings specified in either Section 30.1 of Attachment X or Section 30.1 of
Attachment S of the NYISO OATT. Additionally, the word “in” was inserted into the last
sentence in the definition of “Byway” in Article 1.
III.Effective Date
The parties request an effective date of October 15, 2010. The Commission has allowed interconnection agreements to become effective on the date of execution, even when that date precedes the date that an interconnection agreement is filed.9 Accordingly, the parties request that the Commission grant a waiver of its prior notice requirements to the extent necessary to accommodate this requested effective date.
9 See, e.g., New York Independent System Operator, Inc. and Niagara Mohawk Power Corp., Letter Order, Docket
No. ER08-985-000 (June 26, 2008) (accepting interconnection agreement effective as of the date of execution); New
York Independent System Operator, Inc. and New York Power Authority, Letter Order, Docket No. ER08-861-000
(May 27, 2008) (same); New York Independent System Operator, Inc. and New York Power Authority, Letter Order,
Docket No. ER08-699-000 (May 16, 2008) (same); New York Independent System Operator, Inc. and Niagara
Mohawk Power Corp., Letter Order, Docket No. ER08-427-000 (Feb. 28, 2008) (same); New York Independent
System Operator, Inc. and New York State Electric & Gas Corp., Letter Order, Docket Nos. ER07-1329-000, et al.
(Jan 3, 2008) (same).
Honorable Kimberly D. Bose November 1, 2010
Page 5
IV. Communications and Correspondence
Communications regarding this filing should be directed to:
For the NYISO
Robert E. Fernandez, General Counsel
Karen Georgenson Gach, Deputy General Counsel *Sara B. Keegan, Senior Attorney
New York Independent System Operator, Inc.
10 Krey Boulevard
Rensselaer, NY 12144
Tel: (518) 356-6000
Fax: (518) 356-4702
rfernandez@nyiso.com
kgach@nyiso.com
skeegan@nyiso.com
For the Long Island Lighting Company d/b/a LIPA and the Long Island Power Authority
*Tamika Mendoza, Esq.*Joseph B. Nelson
Assistant General CounselJeffery Winmill
Long Island Power AuthorityVan Ness Feldman, P.C.
333 Earle Ovington Boulevard1050 Thomas Jefferson Street, N.W
Suite 403Seventh Floor
Uniondale, New York 11553Washington, D.C. 20007-3877
Telephone: (516) 222-7700Telephone: (202)-298-1800
Facsimile: (516) 222-9137Facsimile: (202)-338-2416
tmendoza@lipower.orgjbn@vnf.com
jxw@vnf.com
*Designated to receive service.
V.Documents Submitted
The NYISO submits the following documents:
A.this filing letter;
B.a clean version of the Interconnection Agreement (“Attachment I”); and
Honorable Kimberly D. Bose November 1, 2010
Page 6
C. blacklined sheets showing the Interconnection Agreement’s changes from the
body of the NYISO’s pro forma LGIA (“Attachment II”).
VI.Service
The NYISO will send a paper copy of this filing to LIPA and Long Island Solar Farm.
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 electric utility regulatory agency of New Jersey. In addition, a complete
copy of this filing will be posted on the NYISO’s website at www.nyiso.com.
VII. Conclusion
Wherefore, the NYISO respectfully requests that the Commission accept the attached Agreement effective as of October 15, 2010.
Respectfully submitted,
/s/ Sara B. Keegan
Sara B. Keegan
Counsel for the
New York Independent System Operator, Inc.
/s/ Joseph B. Nelson
Joseph B. Nelson
Counsel for the Long Island Lighting Company, d/b/a LIPA, (“LIPA”) and the Long Island Power Authority (“Authority”)