Amanda Downey
Counsel

January 25, 2012

VIA e-TARIFF FILING

Ms. Kimberly D. Bose Secretary

Federal Energy Regulatory Commission 888 First Street, NE

Washington, DC 20426

Re:Niagara Mohawk Power Company

Docket No. ER12-____

Cost Reimbursement Agreement with MM Albany Energy LLC

Dear Secretary Bose:

Pursuant to Section 205 of the Federal Power Act (“FPA”),1 Part 35 of the Federal

Energy Regulatory Commission’s (“Commission”) regulations,2 and the guidance provided in

the Commission’s Prior Notice Order,3 Niagara Mohawk Power Company (“Niagara Mohawk”) d/b/a National Grid submits a Cost Reimbursement Agreement (“Reimbursement Agreement”) between Niagara Mohawk and MM Albany Energy LLC (“MM Albany Energy”). The
Reimbursement Agreement is designated under the New York Independent System Operator, Inc. (“NYISO”) open access transmission tariff (“OATT”), FERC Electric Tariff, Original
Volume No. 1 as Service Agreement No. 1168.

Niagara Mohawk respectfully requests waiver of the Commission’s notice requirements to allow the Reimbursement Agreement to become effective on January 9, 2012, the date set forth in the Agreement.

I.Background

Niagara Mohawk is a public utility with a transmission system in the State of New York.
MM Albany Energy owns the 2.85 MW capacity Albany Landfill Gas Recovery Generation
Facility (the “Facility”) located in Albany, New York. MM Albany Energy is currently
interconnected to the Niagara Mohawk system pursuant to the terms of an interconnection

16 U.S.C. § 824d.

18 C.F.R. Pt. 35.
Prior Notice and Filing Requirements Under Part II of the Federal Power Act (Prior Notice Order), 64

Ms. Kimberly D. Bose
January 25, 2012
Page 2

agreement that was filed with the Commission in Docket No. ER08-427-000 on January 7, 2008, and accepted by the Commission on February 28, 2008.4

MM Albany Energy is making certain modifications to the Facility that require

modifications to the Niagara Mohawk interconnection facilities. The scope of these services is set forth in Schedule A to the Reimbursement Agreement. The services and modifications
contemplated by the Reimbursement Agreement will increase the Facility’s capacity to 9.2 MW. Niagara Mohawk and MM Albany Energy will make appropriate amendments to their
interconnection agreement reflecting this change.

II. Jurisdictional Status of the Reimbursement Agreement

Section 205 of the FPA authorizes the Commission to require utilities to file all rates and
charges that are “for or in connection with,” and all agreements that “affect or relate to,”
jurisdictional transmission service or sales of electric energy.5 In the Prior Notice Order, the
Commission stated that the types of agreements that a utility must file include a “jurisdictional
CIAC agreement,” which is defined as an “agreement providing for the customer payment of
contributions-in-aid-of-construction” of facilities used to provide jurisdictional service, either in
a single lump sum or over a period of time.6 Commission precedent also indicates that
engineering and pre-construction agreements related to jurisdictional facilities can be construed
as CIAC agreements.7

The Reimbursement Agreement relates to both jurisdictional facilities and engineering,
procurement, and construction services necessary to modify the existing interconnection of the
Facility. Therefore, the Commission will likely find it a CIAC agreement and require filing.

Niagara Mohawk is performing these services at actual costs as set forth in Article I of the Reimbursement Agreement and has not collected any funds pursuant to this agreement prior to the instant filing. The Commission should find the price of Niagara Mohawk’s
Reimbursement Agreement services to be just and reasonable because Niagara Mohawk will perform these services at actual costs.

4 New York Independent System Operator, Inc. and Niagara Mohawk Power Corporation, Docket No. ER08-427-000 (Feb. 28, 2008)(unpublished letter order).

Ms. Kimberly D. Bose
January 25, 2012
Page 3

III. Effective Date and Request for Waiver

Niagara Mohawk respectfully requests waiver of the 60-day notice requirement contained
in Section 35.3 of the Commission’s regulations to allow the Reimbursement Agreement to
become effective upon the effective date set forth in the Agreement, i.e., January 9, 2012.

Granting waiver will not result in prejudice to any party. Niagara Mohawk and MM

Albany Energy are working to complete engineering and procurement in March 2012.8 Granting the requested waiver will benefit a customer seeking to modify its facilities interconnected to the transmission system and is therefore consistent with the standard set forth by the Commission in Central Hudson.9 For these reasons, the Commission should find that good cause exists to grant an effective date of January 9, 2012.

IV.Communications and Service

Communications and correspondence with respect to this matter should be addressed to

the following individuals, who should be included on the official service list for this

proceeding:10

Terry L. Schwennesen
Counsel for National Grid

40 Sylvan Road

Waltham, MA 02451-1120 781-907-1811

Terry.Schwennesen@us.ngrid.com

Amanda Downey Counsel

National Grid USA Service Company, Inc.

40 Sylvan Road

Waltham, MA 02451 Tel: 781-907-2136

Amanda.Downey@us.ngrid.com

8See Schedule B of the Reimbursement Agreement.

Sean Atkins

Walton Harris Walker III Alston & Bird LLP

The Atlantic Building 950 F Street, NW

Washington, DC 20004 Tel: 202-239-3300

Fax: 202-239-3333

Sean.Atkins@alston.com
Walton.Walker@alston.com

Ms. Kimberly D. Bose
January 25, 2012
Page 4

V.Conclusion

For the reasons stated herein, Niagara Mohawk respectfully requests that the Commission accept the Reimbursement Agreement, effective January 9, 2012.

Copies of this filing have been served on MM Albany Energy, the New York ISO, and New York regulators.

Sincerely,

/s/ Amanda Downey

Amanda Downey
Counsel

National Grid USA Service Company, Inc.

40 Sylvan Road

Waltham, MA 02451