Amanda Downey
Counsel

January 9, 2013

The Honorable Kimberly D. Bose Secretary

Federal Energy Regulatory Commission 888 First Street, NE

Washington, DC 20426

Re:Niagara Mohawk Power Corporation, d/b/a National Grid

Docket No. ER13-___-000

Amended LGIAs with Alliance Energy Subsidiaries, AG Energy,
L.P.; Seneca Power Partners; and Sterling Power Partners, L.P.;
and Request for Waiver of Commission Notice Requirement

Dear Secretary Bose:

Pursuant to Section 205 of the Federal Power Act, 16 U.S.C. § 824d (2006), and Part 35
of the Federal Energy Regulatory Commission’s (“Commission”) regulations, 18 C.F.R. Part 35
(2012), Niagara Mohawk Power Corporation, d/b/a/ National Grid (“National Grid”), hereby
respectfully submits for Commission acceptance three (3) revised Large Generator
Interconnection Agreements between National Grid and the following generator subsidiaries of
Alliance Energy (“Alliance”) - AG Energy, L.P. (“AG Energy”), Seneca Power Partners
(“Seneca”), and Sterling Power Partners, L.P. (“Sterling”) (collectively, the “Alliance LGIAs” or
“LGIAs”). Since 2007, AG Energy, Seneca, and Sterling have been receiving interconnection
service from National Grid under existing Large Generator Interconnection Agreements accepted
by the Commission (the “2007 Alliance LGIAs”). The revisions to the Alliance LGIAs do not
modify the substantive rates, terms, and conditions for interconnection service to AG Energy,
Seneca, and Sterling other than extending the term of those agreements. The revised Alliance
LGIAs also include non-substantive updates to the name of the interconnection customer and
notice information and the deletion of one inapplicable provision in Appendix C to the Sterling
LGIA.

Because the Alliance LGIAs raise similar issues, National Grid is filing them together. National Grid respectfully requests that the Commission grant waiver of its 60-day notice requirement to permit each of the LGIAs to go into effect as of June 8, 2012.

I.Overview of Filing

The instant filing seeks to update the 2007 Alliance LGIAs previously accepted by the
Commission in Docket Nos. ER07-1019, ER07-1020, and ER07-1021. The Alliance LGIAs are
being updated to extend the term of these agreements by ten years from the requested June 8,

40 Sylvan Road, Waltham, MA 02451

 T: 781-907-2136  F: 781-907-5701  amanda.downey@nationalgrid.com  www.nationalgrid.com

The Honorable Kimberly D. Bose January 9, 2013

Page 2

2012 effective date of the revised Alliance LGIAs contained in this filing. The Alliance LGIAs
also include a limited set of changes updating the names of the Alliance subsidiaries and
updating the notice information for both National Grid and the customers. The three Alliance
generating facilities that are subject to the LGIAs have been interconnected to National Grid’s
transmission system for a number of years. The Alliance LGIAs contained in this filing are not
the result of a request for new interconnection service under the Open Access Transmission
Tariff (“OATT”) of the New York Independent System Operator, Inc. (“NYISO”).

The updated Alliance LGIAs, which are provided in Attachments A, B, and C to this
filing, closely follow the pro forma NYISO LGIA contained in Appendix 6 to Attachment X to
the NYISO OATT. Other than the small set of revisions to the Alliance LGIAs proposed in this
filing, any differences between the pro forma NYISO LGIA and the Alliance LGIAs have
already been authorized pursuant to a series of Commission orders issued in 2007 and 2008.1

Black-lined documents showing the modest differences between the provisions in the
currently effective Alliance LGIAs that were accepted in those orders and the provisions in the
attached LGIAs are provided in Attachments D, E, and F to this filing. For each of the attached
LGIAs, the proposed changes are solely to the cover page, the introductory paragraph before the
recitals, Article 2.2 (entitled “Term of Agreement”), the signature block, and Appendices C
(entitled “Interconnection Details”) and F (entitled “Addresses for Delivery of Notices and
Billings”).

II.Background

The three generating facilities that are subject to the Alliance LGIAs have been

interconnected to National Grid’s transmission system since the 1990s. On June 8, 2007,

National Grid filed with the Commission three unexecuted interconnection agreements between National Grid and AG Energy, Seneca, and Sterling with a request that the Commission rule on certain issues on which the parties were unable to reach agreement. As with the amended LGIAs submitted in this filing, the 2007 Alliance LGIAs were not the result of requests for new
interconnection service under the NYISO OATT and reflected no increases in the capacity of or changes to the characteristics of the existing generating facilities. The 2007 Alliance LGIAs
largely followed, with some changes, the NYISO pro forma NYISO LGIA. In particular,
modifications were made in the 2007 Alliance LGIAs to reflect the fact that they were two-party agreements between Alliance and National Grid.2

The Honorable Kimberly D. Bose January 9, 2013

Page 3

In the October 2007 Order, the Commission accepted the 2007 Alliance LGIAs, subject
to conditions, approved the uncontested settlement related to certain refund associated with prior
interconnection agreements among the parties, and directed National Grid to file a refund report.
National Grid subsequently filed and obtained Commission acceptance of the required changes
and refund report. The Commission accepted each of the 2007 Alliance LGIAs effective as of
June 8, 2007.3

III.Proposed Changes

National Grid and AG Energy, Seneca, and Sterling have agreed to a limited set of

changes to the Alliance LGIAs. First, in each LGIA, the introductory paragraph included before the recitals has been modified to reflect the date when the modified LGIA was entered into -
June 8, 2012 - and the current company name of the Alliance subsidiary. The signature block in each LGIA has also been modified to reflect the change in company name.

Article 2.2 in each of the Alliance LGIAs has been modified to extend the term of service
from a period of five years to a period of ten years (unless otherwise extended at the request of
the Alliance subsidiary subject to the LGIA). Consequently, Article 2.2 in each LGIA now
reads: “Subject to the provisions of Article 2.3, this Agreement shall remain in effect for a
period of ten (10) years from the Effective Date or such other longer period as the [Alliance
subsidiary] may request and shall be automatically renewed for each successive one-year period
thereafter.”

Appendix C to each LGIA has been modified to reflect the change in company name.

Additionally, Appendix C of each LGIA has been modified to change the wording of the

provision that references the one-line diagram in Appendix A that shows the point of

interconnection. Appendix C of each LGIA has also been modified to delete the text that follows the section entitled “Reference.” Further, the section in Appendix C of the LGIA for Sterling entitled “Construction Requirements” has been deleted because there are no ongoing
construction requirements associated with this ongoing interconnection.

Lastly, Appendix F to each LGIA has been modified to include updated contact information for delivery of notices and billing.

1146.

The 2007 Alliance LGIAs were designated as Second Revised Service Agreement Nos. 1144, 1145, and

Amanda C. Downey Counsel

National Grid USA
Service Company, Inc.

40 Sylvan Road

Waltham, MA 02451 Tel: 781-907-2136

amanda.downey@nationalgrid.com

William L. Malee

Director, Transmission Commercial National Grid USA

40 Sylvan Road

Waltham, MA 02451 (781) 907-2422

bill.malee@nationalgrid.com

Sean A. Atkins
Ambrea Watts

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
ambrea.watts@alston.com

Copies of this filing have been served on AG Energy, Seneca, Sterling, the New York State Public Service Commission, and the NYISO.

V.Effective Date and Request for Waiver

For each of the attached Alliance LGIAs, National Grid respectfully requests waiver of the 60-day notice requirement contained in Section 35.3 of the Commission’s regulations (18 C.F.R. § 35.3), pursuant to Section 35.11 of the Commission’s regulations (18 C.F.R. § 35.11), to allow the LGIA to become effective as of June 8, 2012. This is the date on which the parties agreed that the amended Alliance LGIAs should become effective. National Grid also requests waiver of any Commission requirements not specifically addressed herein that may be necessary to allow each LGIA to become effective as of June 8, 2012.

Good cause exists for the Commission to grant this waiver as no prejudice will result to
any party and waiver is consistent with the standard set forth by the Commission in Central
Hudson.5 The “Effective Date” is defined in Article 1 of each LGIA as “the date on which this

The Honorable Kimberly D. Bose January 9, 2013

Page 5

Agreement becomes effective upon execution by the Parties, subject to acceptance by the

Commission.” Therefore, the parties intend for each LGIA to go into effect on the June 8, 2012 date specified in Article 1.

Most importantly, the amended Alliance LGIAs do not result in any new or modified charge for services as compared with the currently effective versions of the LGIAs. Nor are there any substantive revisions in the Alliance LGIAs other than the extension of the term of these agreements.6 Therefore, granting the requested waiver is appropriate.

VI.Documents Enclosed

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

i.Third Revised Service Agreement No. 1144 under the NYISO OATT

(Attachment A)

ii.Third Revised Service Agreement No. 1145 under the NYISO OATT

(Attachment B)

iii.Third Revised Service Agreement No. 1146 under the NYISO OATT

(Attachment C)

iv. Third Revised Service Agreement No. 1144 black-lined against the currently

effective version of that LGIA (Second Revised Service Agreement No. 1144) (Attachment D)

v. Third Revised Service Agreement No. 1145 black-lined against the currently

effective version of that LGIA (Second Revised Service Agreement No. 1145) (Attachment E)

vi. Third Revised Service Agreement No. 1146 black-lined against the currently

effective version of that LGIA (Second Revised Service Agreement No. 1146) (Attachment F)

6 If the amended Alliance LGIAs were not permitted to become effective June 8, 2012, then Section 2.2 of the 2007 Alliance LGIAs would result in the 2007 versions of the LGIAs being automatically renewed for one year until they are superseded by the attached amended LGIAs. In other words, the same rates, terms, and conditions will remain in effect regardless of whether the requested waiver is granted.

The Honorable Kimberly D. Bose January 9, 2013

Page 6

VII. Conclusion

For the reasons stated herein, National Grid respectfully requests that the Commission
accept each of the three Alliance LGIAs contained in this filing, effective as of June 8, 2012.

Respectfully submitted,

/s/ Amanda Downey

Amanda C. Downey
Counsel

National Grid USA

Service Company, Inc.

40 Sylvan Road

Waltham, MA 02451

Attorney for Niagara Mohawk Power
Corporation d/b/a National Grid

Enclosure