Daniel Galaburda

Assistant General Counsel

March 11, 2011

VIA ELECTRONIC FILING

The Honorable Kimberly D. Bose Secretary

Federal Energy Regulatory Commission 888 First Street, NE, Room lA
Washington, D.C. 20426

RE: Niagara Mohawk Power Corporation

Engineering, Procurement & Construction Services Agreement with Nine Mile Point Nuclear Station, LLC

Docket No. ER11-___________
Service Agreement No. 1711

Dear Secretary Bose:

Pursuant to Section 205 of the Federal Power Act, 16 U.S.C. § 824d, and Part 35.12 of
the Federal Energy Regulatory Commission's (“FERC” or the “Commission”)
regulations, 18 C.F.R. Part 35.12 (2010), Niagara Mohawk Power Corporation, d/b/a
National Grid (“Niagara Mohawk”), submits for filing an Engineering, Procurement &
Construction Services Agreement (“EPC Agreement”) between Niagara Mohawk and Nine
Mile Point Nuclear Station, LLC (“Nine Mile”). Pursuant to Order No. 714, this agreement has
been designated as Service Agreement No. 1711 under the New York Independent System
Operator, Inc. (“NYISO”) open access transmission tariff (“OATT”), FERC Electric Tariff,
Original Volume No. 1. As explained below, the EPC Agreement governs certain terms and
conditions for work performed by Niagara Mohawk in connection with the planned uprate of Nine
Mile’s Unit 2 nuclear generation facility.

I. Background and Description of the EPC Agreement

The Nine Mile Point Unit 2 nuclear generation facility is the subject of an
interconnection agreement (“Existing Unit 2 Interconnection Agreement”) among
Nine Mile, Niagara Mohawk, and New York State Electric & Gas Corporation
(“NYSEG”). This agreement is designated as Service Agreement No. 309 under the
NYISO OATT. An unexecuted version of the Existing Unit 2 Interconnection
Agreement was first accepted by the Commission in Docket No. ER01-1986.1 An

The Honorable Kimberly D. Bose

March 11, 2011

Page 2 of 4

updated and signed version of the Existing Unit 2 Interconnection Agreement was

accepted by the Commission by an unpublished letter order issued in Docket No.

ER02-1067 on April 23, 2002. An amendment to the Existing Unit 2 Interconnection Agreement was accepted by the Commission by an unpublished letter order issued in Docket No. ER02-2494 on October 4, 2002.

Nine Mile plans to uprate the Unit 2 nuclear generation facility. The proposed
uprate to this existing generation facility has been studied in the NYISO
interconnection process. The uprate will require certain work to be undertaken by
Niagara Mohawk, including upgrades at the Scriba Substation located in Oswego
County, New York. Nine Mile and Niagara Mohawk are negotiating a new
interconnection agreement for the Unit 2 facility with the NYISO and NYSEG. This
agreement (the “New Unit 2 Interconnection Agreement”) will address the Unit 2
uprate project.

Under Section 30.9 of Attachment X to the NYISO OATT, prior to finalization of an interconnection agreement, “a Developer may, in order to advance the implementation of its interconnection, request and Connecting Transmission Owner shall offer the Developer, an [Engineering & Procurement] Agreement that authorizes the Connecting Transmission
Owner to begin engineering and procurement of long lead‐time items necessary for the
establishment of the interconnection.” Nine Mile requested such an agreement in this instance, and the parties have agreed to the attached EPC Agreement.

Niagara Mohawk does not believe that engineering & procurement agreements
entered into pursuant to Section 30.9 of Attachment X to the NYISO OATT generally
need to be filed with the Commission. In this instance, however, the parties have
agreed to a provision in the EPC Agreement which will affect the implementation of
the New Unit 2 Interconnection Agreement once it is finalized.2 Under Article 2 of
the EPC Agreement, the EPC Agreement will terminate once the New Unit 2
Interconnection Agreement is executed by all parties or otherwise is accepted to
become effective by the Commission. Under Article 7.5 of the EPC Agreement, any
remaining balance of prepayments made to Niagara Mohawk by Nine Mile under the
EPC Agreement will be applied to invoices charged to Nine Mile under the New Unit

2 Interconnection Agreement.3 Article 7.5 also provides that Niagara Mohawk will

adjust the security to be provided under the New Unit 2 Interconnection Agreement to reflect such prepayments. This provision is intended to facilitate the transition from the EPC Agreement to the New Unit 2 Interconnection Agreement.

Because the New Unit 2 Interconnection Agreement will, by necessity, have a number of differences from

The Honorable Kimberly D. Bose

March 11, 2011

Page 3 of 4

II. Requested Effective Date and Waiver of Prior Notice Requirement

Niagara Mohawk requests that the EPC Agreement be made effective as of March 8, 2011 and, to the extent applicable, requests waiver of the 60-day prior notice
requirement. The requested effective date will enable Niagara Mohawk to begin
providing the services under the EPC Agreement as soon as practicable. Niagara
Mohawk is authorized to state that Nine Mile supports the requested effective date.
Granting the requested effective date will be consistent with Commission precedent
granting waivers of the 60-day prior notice requirement for an uncontested agreement when supported by the customer of a public utility.4

III.Communications and Service

Communications regarding this filing should be addressed to the following individuals,

whose names should be entered on the official service list maintained by the Secretary for the

docket established with respect to this filing:

Daniel GalaburdaWilliam Malee

Assistant General CounselDirector of Transmission Commercial Services

National Grid USA Service Company, Inc.National Grid USA Service Company, Inc.

40 Sylvan Road40 Sylvan Road

Waltham, MA 02451Waltham, MA 02451

Phone: (781) 907-1847Phone: (781) 907-2422

Email:Email: bill.malee@us.ngrid.com

daniel.galaburda@us.ngrid.com

Mary Ellen Paravalos

Vice President of Transmission

Regulation & Commercial Services

National Grid USA Service Company, Inc.

40 Sylvan Road

Waltham, MA 02451
Phone: (781) 907-5706

Email: Mary.ellen.paravalos@us.ngrid.com

4See, e.g. Central Hudson Gas & Electric Corp. et al., 60 FERC ¶ 61,106 , reh’g denied, 61 FERC ¶ 61,089

(1992).

The Honorable Kimberly D. Bose

March 11, 2011

Page 4 of 4

IV. Enclosed Documents
Enclosed please find:

i.This filing letter;

ii.Service Agreement No. 1711

Copies of this filing have been served on Nine Mile, the NYISO, NYSEG, and the New York Public Service Commission.

Respectfully submitted,

/s/ Daniel Galaburda

Daniel Galaburda

Assistant General Counsel

National Grid USA Service Company, Inc.

40 Sylvan Road

Waltham, MA 02451

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

Enclosures