1900 K STREET, NW
SUITE 1200
WASHINGTON, DC 20006-1109
Honorable Kimberly D. Bose, Secretary Federal Energy Regulatory Commission 888 First Street, NE
Washington, DC 20426
350 LINDEN OAKS DRIVE
SUITE 310
ROCHESTER, NY 14625
January 5, 2011
Re: Filing of an Executed Small Generator Interconnection Agreement by and
among the New York Independent System Operator, Inc., New York State
Electric & Gas Corporation, and AES ES Westover, LLC, and Request for
Waiver of 60-Day Notice Period, Docket No. ER11- __ -000
Dear Ms. Bose:
Pursuant to Section 205 of the Federal Power Act1 and Section 35.12 of the
Commission’s regulations,2 the New York Independent System Operator, Inc. (“NYISO”) and New York State Electric & Gas Corporation (“NYSEG”) (together, the “Joint Filing Parties”) hereby tender for filing an executed Small Generator Interconnection Agreement entered into by the NYISO, NYSEG, as the Connecting Transmission Owner, and AES ES Westover, LLC (“Westover”), as the Interconnection Customer (the “Westover Agreement”).3 The Westover Agreement is labeled as Service Agreement No. 1677.
The Joint Filing Parties respectfully request that the Commission accept the Westover
Agreement for filing. With the limited exceptions described in Section I.B of this letter, the
Westover Agreement conforms to the NYISO’s pro forma Small Generator Interconnection
Agreement (“Pro Forma SGIA”) as accepted by the Commission and contained in Attachment Z
to the NYISO’s OATT.4 Further, as described in Section II of this letter, the Joint Filing Parties
1 16 U.S.C. § 824d (2008).
2 18 C.F.R. § 35.12 (2009).
3 Capitalized terms not otherwise defined have the meaning ascribed to them in the NYISO’s OATT and Attachments S and Z to the NYISO OATT.
4 See New York Independent System Operator, Inc., New York Transmission Owners, 113 FERC ¶ 61,130 (2007), order on reh’g, 119 FERC ¶ 61,333 (2007) and New York Independent System Operator, Inc., New York Transmission Owners, Letter Order, Docket Nos. ER06-311-004 and 005 (March 3, 2008).
Honorable Kimberly D. Bose January 5, 2011
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respectfully request a waiver of the Commission’s prior notice requirements5 to make the Westover Agreement effective as of December 9, 2010, the date of its execution.
I.Discussion
A.Background
Westover is constructing a 20 MW battery-based energy storage system (“Facility”) that
will 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 the Town of Union in Broome County,
New York. The Facility will consist of ten 2 MW battery/inverter units.6 Westover plans to use
the Facility to provide regulation service to the NYISO markets. Additional details regarding the
interconnection of the Facility can be found in Attachment 2 of the Westover Agreement.
The Facility will interconnect with the New York State Transmission System at
NYSEG’s Goudey Substation by means of existing Interconnection Facilities owned by AEE2 and associated with the retired Unit 7 at the Westover Generating Station. Westover has leased these Interconnection Facilities through a Lease Agreement between Westover and AEE2
executed on December 9, 2010, and filed with the Commission on December 9, 2010.7 As
described in Section A of Attachment 2 of the Westover Agreement, the Lease Agreement
provides Westover with control over the Interconnection Facilities sufficient to fulfill its
responsibilities under the Westover Agreement. The Facility’s Points of Interconnection will be the 115 kV bus tap in NYSEG’s 115 kV Goudey Substation and the 34.5 kV bus tap in
NYSEG’s 34.5 kV Goudey Substation. Attachment 3 to the Westover Agreement provides a
one-line diagram showing the Points of Interconnection.
B. The Westover Agreement Closely Conforms to the Pro Forma SGIA
Contained in Attachment Z of the NYISO OATT
The Westover Agreement was executed on December 9, 2010, by the NYISO, NYSEG,
and Westover. The Westover Agreement closely follows the language in the Pro Forma SGIA
contained in Attachment Z of the NYISO OATT. However, the Westover Agreement does
contain limited variations from the Pro Forma SGIA that are necessary because of the unique
circumstances of Westover’s project described in Sections I.B.1 and I.B.2 below. The Joint
Filing Parties submit that the changes specified below satisfy the Commission’s standard for
variations from the Pro Forma SGIA, because unique circumstances exist that require a non-
5 See Prior Notice and Filing Requirements Under Part II of the Federal Power Act, 64 FERC ¶61,139, reh’g denied, 65 FERC 61,081 (1993).
6 Four of these units (8 MW) have already been installed and are expected to be operational in December
2010. Westover plans to install six additional units (12 MW) that will be operational in the second quarter of 2011.
7 See AEE2, L.L.C., Docket No. ER11-2328-000 (December 9, 2010).
Honorable Kimberly D. Bose January 5, 2011
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conforming agreement.8 Therefore, the Joint Filing Parties respectfully request that the
Commission accept the Westover Agreement with these limited non-conforming changes.
1.Change to Section 4.1
Section 4.1 of the Pro Forma SGIA states that the Interconnection Customer will be
responsible for the expenses associated with owning, operating, maintaining, repairing, and
replacing the Interconnection Customer’s Interconnection Facilities and the Connecting
Transmission Owner’s Interconnection Facilities. However, in this instance, the Facility will
interconnect with the New York State Transmission System through the Connecting
Transmission Owner’s existing Interconnection Facilities. Expenses associated with the
Connecting Transmission Owner’s Interconnection Facilities are already covered by a pre-
existing operating and maintenance agreement previously entered into by the Connecting
Transmission Owner.9 As the Connecting Transmission Owner has already covered the
expenses for the Connecting Transmission Owner’s Interconnection Facilities through this
previous agreement, the parties to the Westover Agreement have agreed that the Connecting
Transmission Owner is the appropriate party to be responsible under the Westover Agreement
for the expenses associated with owning, operating, maintaining, repairing, and replacing the
Connecting Transmission Owner’s Interconnection Facilities. Therefore, the Joint Filing Parties
propose to revise Section 4.1 to state that the Connecting Transmission Owner, and not the
Interconnection Customer, is responsible for these expenses.
2.Change to Section 7.3
Section 7.3 of the Pro Forma SGIA establishes general indemnity requirements stating
that each party will be protected from liability incurred to third parties as a result of carrying out
the provisions of the Pro Forma SGIA. However, as part of the Westover Agreement, NYSEG
and Westover will perform certain work to relocate lines in proximity to the Facility, and the
parties have agreed on separate indemnity and release provisions specific to this line relocation
work as detailed in Section F of Attachment 2 of the Westover Agreement. Therefore, the Joint
Filing Parties propose to revise Section 7.3 to state that any liability associated with this line
relocation work will be addressed through the indemnity and release provisions agreed-upon for
such work as set forth in Section F of Attachment 2 of the Westover Agreement.
8 See, e.g., Midwest Independent Transmission System Operator, Inc., 119 FERC ¶ 61,188 at P 8 (2007)
(requiring that deviations from the pro forma SGIA be clearly identified and an explanation be provided that
indicates “why the unique circumstances of the interconnection require a non-conforming interconnection
agreement”).
9 This Agreement Regarding Standby Service, dated June 27, 2003, is described in Section G of
Attachment 2 of the Westover Agreement. This agreement was entered into between NYSEG and AES Eastern Energy, LLC, and establishes that AES Eastern Energy, LLC will pay for the expenses to own, operate, maintain, repair, and replace certain Interconnection Facilities that include the Connecting Transmission Owner’s
Interconnection Facilities that will be utilized by the Facility.
Honorable Kimberly D. Bose January 5, 2011
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II. Proposed Effective Date and Request for Waiver of Notice Requirement
The Joint Filing Parties request a December 9, 2010, effective date for the Westover
Agreement, which is the date of execution. The Joint Filing Parties respectfully request that the Commission waive the prior notice requirement in order to permit the requested effective date. The Commission has previously permitted interconnection agreements to become effective upon the date of execution.10
III.Communications and Correspondence
The following persons should be included in the official service list in this proceeding
and all communications concerning this filing should be addressed to them:
For the NYISO
Robert E. Fernandez, General Counsel
* Karen Georgenson Gach, Deputy General Counsel 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
* - Designated to receive service.
* J. Kennerly Davis11 Hunton & Williams LLP 951 East Byrd Street
Richmond, VA 23219
Tel: (804) 788-8559
Fax: (804) 788-8218
kdavis@hunton.com
Ted J. Murphy
Hunton & Williams LLP
1900 K Street, NW, Suite 1200 Washington, DC 20006-1109 Tel: (202) 955-1500
Fax: (202) 778-2201
tmurphy@hunton.com
10 See, e.g., New York Independent System Operator, Inc. and New York State Electric & Gas Corporation, Letter Order, Docket Nos. ER09-159-000 and 001 (December 11, 2008); New York Independent System Operator, Inc. and Niagara Mohawk Power Corp., Letter Order, Docket No. ER08-985-000 (June 26, 2008).
11 The NYISO respectfully requests waiver of 18 C.F.R. § 385.203(b)(3) to permit service on counsel for the NYISO in both Washington, D.C. and Richmond, Virginia.
Honorable Kimberly D. Bose January 5, 2011
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For NYSEG
*Mark A. Chier*Jeffrey R. Clark
Electric Transmission ServicesBond, Schoeneck & King, PLLC
New York Electric & Gas Corporation350 Linden Oaks, Suite 310
18 Link DriveRochester, NY 14625-2825
Binghamton, NY 13904-3222Tel: (585) 362-4721
Tel: (607) 762-8073Fax: (585) 362-4701
Fax: (607)762-8666jrclark@bsk.com
machier@nyseg.com
* - Designated to receive service.
IV.Documents Submitted
The NYISO submits the following documents:
1. This filing letter;
2. A clean version of the Westover Agreement (“Attachment I”); and
3. A blacklined version of the Westover Agreement showing the changes from the body
of the Pro Forma SGIA (“Attachment II”).
V.Service
The NYISO will send a paper copy of this filing to NYSEG and Westover. 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, the complete public
version of this filing will be posted on the NYISO’s website at www.nyiso.com.
Honorable Kimberly D. Bose January 5, 2011
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VI.Conclusion
For the foregoing reasons, the Joint Filing Parties respectfully request that the
Commission accept this Westover Agreement for filing with an effective date of December 9,
2010.
Respectfully submitted,
/s/ Ted J. Murphy
Ted J. Murphy
Counsel for the
New York Independent System Operator, Inc.
/s/ Jeffrey R. Clark
Jeffrey R. Clark
Counsel for
New York State Electric & Gas Corporation
Enclosures