10 Krey Boulevard  Rensselaer, NY 12144

August 13, 2013

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. 1677 to the New York
Independent System Operator, Inc. Open Access Transmission Tariff,
Docket No. ER13-___-000

Dear Ms. 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 an Amended and Restated Small Generator Interconnection Agreement (“Amended SGIA”) among the NYISO, New York State Electric & Gas Corporation (“NYSEG”) as the Connecting Transmission Owner, and AES ES Westover, LLC (“Westover”) as the Interconnection Customer.3 The SGIA is designated as Service Agreement No. 1677 under the NYISO’s OATT. NYSEG and Westover have indicated to the NYISO that neither party opposes this filing.

I.Background

The Amended SGIA for which the NYISO submits this Notice of Cancellation

superseded a Small Generator Interconnection Agreement among the parties that was filed in
Docket No. ER11-2631-000, as Service Agreement No. 1677 (“Original Agreement”). The
Original Agreement was accepted by the Commission on February 3, 2011.4 The Original
Agreement stated that Westover was constructing a 20 MW battery-based energy storage system
(“Facility”) that would be located in the footprint of the retired Unit 7 at the existing coal-fired
Westover Generating Station owned by AEE2, L.L.C. (“AEE2”) in Union, New York. The
Original Agreement provided that the Facility would consist of ten 2 MW battery/inverter units

1 16 U.S.C. § 824d (2006).

2 18 C.F.R. §§ 35.9, 35.15 (2008).

3 Capitalized terms not otherwise defined in this letter have the meaning set forth in
Attachments S, X and Z of the NYISO’s Open Access Transmission Tariff (“OATT”).

4 New York Independent System Operator, Inc. and New York State Electric & Gas
Corporation, Order, Docket No. ER11-2631-000 (Letter Order issued February 3, 2011).

Honorable Kimberly D. Bose August 13, 2013

Page 2

interconnecting at NYSEG’s Goudey Substation. The Original Agreement anticipated that the Facility would initially consist of two 4 MW modules in what was characterized in the Original Agreement as “Phase I” for a total of 8 MW, to be in operation in December 2010. The Original Agreement then provided for a Phase II, described as the addition of three 4 MW modules for an additional 12 MW, to be in operation in April 2011.

After execution of the Original Agreement, the ownership of certain Interconnection

Facilities was transferred to NYSEG as part of the Chapter 11 Bankruptcy proceeding pending in
the U.S. Bankruptcy Court, District of Delaware, Case No. 11-14138-KJC. Pursuant to a
Stipulation Among Debtors, Purchaser and Westover dated October 9, 2012, Westover was
obligated, at its sole cost and expense, to remove certain Interconnection Facilities from the
Westover Generating Station to a new building to be constructed by Westover on property that it
owns. Westover was also required to perform certain work related to the relocation of these
facilities. As a result of these developments, the Parties amended the Original Agreement. The
Amended SGIA was executed on December 26, 2012 and was submitted to the Commission for
acceptance in a joint filing made by the NYISO and NYSEG dated January 22, 2013 in Docket
No. ER13-789-000. The Commission accepted the Amended SGIA in a letter order dated March
5, 2013.

II. Communications and Correspondence

Communications regarding this filing should be directed to the following persons, whose names should be entered on the official service list maintained by the Secretary for the docket established with respect to this filing:

For the NYISO

Robert E. Fernandez, General Counsel

Raymond Stalter, Director of Regulatory Affairs *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
skeegan@nyiso.com

*Mark Chier

Manager, Programs/Projects
Electric Transmission Services

New York State Electric & Gas Corporation

18 Link Drive

Binghamton, NY 13902-5224 Tel: (607) 762-8073

Fax: (607) 762-8666
machier@nyseg.com

For Westover

* Dauren Kilish
Vice President

AES ES Westover, LLC 4300 Wilson Blvd.

Arlington, VA 22203
Phone: (562) 577-7706

Email: dauren.kilish@aes.com
*Designated to receive service.

III.Notice of Cancellation

*Jeffrey A. Rosenbloom

Managing Attorney and Assistant Secretary

Rochester Gas & Electric

89 East Avenue

Rochester, NY 14649
Tel: (585) 724-8132
Fax: (585) 724-8668

jeffrey_rosenbloom@rge.com

Section 3.3.1 of the Amended SGIA provides that the Amended SGIA may be terminated by the Interconnection Customer upon giving the NYISO and the Connecting Transmission Owner
twenty (20) Business Days written notice. Pursuant to this section, Westover provided a letter to the NYISO and NYSEG dated July 22, 2013, requesting termination of the Amended SGIA
effective August 20, 3013.5 Pursuant to the Developer’s letter of July 22, 2013 and Section 3.3.1 of the Amended SGIA, the NYISO hereby submits this Notice of Cancellation of Service
Agreement No. 1677 of the NYISO OATT. NYSEG and Westover have indicated to the NYISO that neither party opposes this filing.

IV. Requested Effective Date

The NYISO respectfully requests that the Commission approve the Notice of

Cancellation of Service Agreement No. 1677 of the NYISO OATT, effective August 20, 2013 to
coincide with the requested termination date included in Westover’s July 22, 2013 notice of
termination.

5 A copy of this letter is included as Attachment A to this filing.

Honorable Kimberly D. Bose August 13, 2013

Page 4

V.Documents Submitted

The Joint Filing Parties submit the following documents:

• this filing letter;

• Westover’s July 22, 2013 letter advising NYISO and NYSEG of its intent to
terminate the Amended SGIA (Attachment A); and

• Notice of Cancellation of Service Agreement No. 1677 to the NYISO OATT
(Attachment B).

VI. Service

The NYISO will send an electronic link to this filing to the Parties to Amended SGIA,
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, a complete copy of the documents included with 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 this Notice of Cancellation and grant an effective date of August 20, 2013.

Respectfully submitted,

/s/ Sara B. Keegan

Sara B. Keegan
Counsel for the

New York Independent System Operator, Inc.