Amanda C. Downey

Counsel

August 1, 2014

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. ER14-___-000

Notice of Cancellation of Service Agreement No. 1953

Dear Secretary Bose:

Pursuant to Section 35.15 of the Federal Energy Regulatory Commission’s

(“Commission”) regulations,1 Niagara Mohawk Power Corporation d/b/a National Grid (“Niagara Mohawk”) submits for Commission acceptance this Notice of Cancellation of the Cost Reimbursement Agreement (“Reimbursement Agreement”) between Niagara Mohawk and Erie Boulevard Hydropower, L.P. (“Erie”) designated as Service
Agreement No. 1953 under the New York Independent System Operator, Inc.’s
(“NYISO”) Open Access Transmission Tariff (“OATT”).

Niagara Mohawk respectfully requests that the Commission accept this Notice of Cancellation effective October 1, 2014.

I.Background and Justification for Cancellation

The Reimbursement Agreement was filed with the Commission and accepted in Docket No. ER13-888, effective November 9, 2012 as requested by Niagara Mohawk.2 The Reimbursement Agreement included provisions under which Erie agreed to
reimburse Niagara Mohawk for the actual costs and expenses incurred in connection with work performed by Niagara Mohawk to expedite the interconnection process for Erie’s expanded Stewarts Bridge Hydropower Generation Plant (“Plant”).

Niagara Mohawk and Erie also agreed to a provision that would affect the

implementation of the new interconnection agreement for the Plant once it was finalized.
Specifically, under Section 2.2 of the Reimbursement Agreement, Niagara Mohawk

The Honorable Kimberly D. Bose August 1, 2014

Page 2

would have no further obligation to perform work under the Reimbursement Agreement upon the date the Commission accepted the new interconnection agreement.3 Further, Section 2.2 states that the Reimbursement Agreement will terminate upon final payment by Erie of all reimbursable costs incurred by Niagara Mohawk during the term of the
Reimbursement Agreement.

The new interconnection agreement was filed in Docket No. ER13-1390. On
June 14, 2013, the Commission issued a letter order accepting the interconnection
agreement effective April 17, 2013, as requested by parties to the interconnection
agreement.

On May 8, 2013, Erie made final payment of all reimbursable costs incurred by Niagara Mohawk pursuant to the Reimbursement Agreement.

II.Effective Date

Niagara Mohawk requests that the Commission accept this Notice of Cancellation
effective October 1, 2014. As noted above, Erie has already made final payment of all
reimbursable costs incurred by Niagara Mohawk pursuant to the Reimbursement
Agreement, so the Reimbursement Agreement has already expired by its own terms.

III.Communication

Communications and correspondence regarding this filing should be addressed to

the following individuals:

Amanda C. Downey
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

40 Sylvan Road

Sean Atkins

Bradley R. Miliauskas Alston & Bird LLP 950 F Street, NW

Washington, DC 20004 Tel: (202) 239-3300

sean.atkins@alston.com
bradley.miliauskas@alston.com

3 See transmittal letter for Reimbursement Agreement filing in Docket No. ER13-888 at 2. The transmittal letter also explained that, under Section 7.5 of the Reimbursement Agreement, any remaining balance of prepayments made to Niagara Mohawk by Erie under the Reimbursement Agreement would be applied to invoices charged to Erie under the new interconnection agreement. In addition, Section 7.5 of the Reimbursement Agreement provides that Niagara Mohawk will adjust the security to be provided under the new interconnection agreement to reflect such prepayments. Id. at 2-3.

The Honorable Kimberly D. Bose August 1, 2014

Page 3

Waltham, MA 02451
Tel: (781) 907-2422

bill.malee@nationalgrid.com

IV.Service

Niagara Mohawk has served this filing on Erie, the NYISO, and the New York Public Service Commission.

V.Conclusion

For the reasons stated above, Niagara Mohawk requests that the Commission accept this Notice of Cancellation of the Reimbursement Agreement effective as of October 1, 2014.

Respectfully submitted

/s/ Amanda C. 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