Daniel Galaburda

Assistant General Counsel

May 5, 2011

VIA ELECTRONIC FILING

Ms. Kimberley Bose

Secretary

Federal Energy Regulatory Commission 888 First Street, NE

Washington, DC 20426

RE: Niagara Mohawk Power Corporation
Docket No. ER11-_____

Construction Services Agreement between Niagara Mohawk Power Corporation and the Village of Churchville, New York

Dear Secretary Bose:

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

Commission’s regulations,2 and Order No. 714,3 Niagara Mohawk Power Corporation
(“Niagara Mohawk”), d/b/a National Grid submits for Commission acceptance a
Construction Services Agreement (“Services Agreement”) between Niagara Mohawk and the Village of Churchville, New York (“Churchville”).4 The Services 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. 1752.

Niagara Mohawk respectfully requests waiver of the Commission’s prior notice requirements to permit the Services Agreement to go into effect as of the date of
execution, April 27, 2011.

I.Background

Churchville owns and operates a municipal electric system which is currently

interconnected to and receives transmission services from Niagara Mohawk at

Churchville’s existing substation on Richmond Avenue in the Village of Churchville (the “Existing Substation”). Churchville is constructing a transmission line and substation located at 54 Sanford Road North, Village of Churchville, in accordance with the

16 U.S.C. § 824d.

18 C.F.R. Part 35.

Electronic Tariff Filings, FERC Stats. & Regs. ¶ 31,276 (2008).
While it is not completely clear whether the Services Agreement is subject to Commission filing

The Honorable Kimberley D. Bose May 5, 2011

Page 2

standards and requirements of Niagara Mohawk along with approximately 420 feet of

34.5 kV sub-transmission line to interconnect with Niagara Mohawk ’s 34.5 kV sub-
transmission line number 201 located in the Village of Churchville, Monroe County.

II.Services Agreement

The Services Agreement provides for Niagara Mohawk to engineer, procure and
construct certain facilities to interconnect the new, second substation to Niagara
Mohawk’s existing 34.5 kV transmission system. Section 6.0 of the Services Agreement
provides that Niagara Mohawk shall perform this work in return for reimbursement of
Niagara Mohawk’s actual costs,5 which include labor and materials. Niagara Mohawk
has provided Churchville with a conceptual estimate for the service identified (see
Section 3.2), however, Churchville is responsible for all actual costs incurred. Pursuant
to Section 2.1, the Services Agreement is in effect until final payment is received by
Niagara Mohawk.

Churchville is constructing the Tap Line from the new substation to Niagara

Mohawk’s existing 34.5 kV sub-transmission line. Pursuant to Section 11.0 of the

Services Agreement, ownership of the Tap Line will be transferred from Churchville to Niagara Mohawk not later than 15 days prior to the Anticipated Energization Date, subject to the receipt of any required regulatory approvals.

III.Effective Date

Niagara Mohawk requests waiver of the Commission’s 60-day notice requirement
to permit the Services Agreement to become effective on April 27, 2011. Good cause
exists for such a waiver. Niagara Mohawk is responding to Churchville’s request that
Niagara Mohawk perform work under the Services Agreement beginning prior to May 1,
2011. Churchville’s projected milestone schedule lists May 1, 2011 as the date by which
it expects to complete building of the 34.5 kV Tap Line. As of this date, Niagara
Mohawk is to complete its review and approval of the drawings submitted by Churchville
and begin construction work. See Section 5.0 of the Services Agreement. Granting the
requested waiver will allow Niagara Mohawk to accommodate Churchville and is in the
public interest and consistent with the standard set forth by the Commission in Central
Hudson.6 For these reasons, the Commission should find that good cause exists to grant
an effective date of April 27, 2011.

“Actual Costs” is a defined term pursuant to Section 1.0 of the Services Agreement.
See Central Hudson Gas & Electric Corp., 60 FERC ¶ 61,106 at 61,338, reh’g denied, 61 FERC¶

The Honorable Kimberley D. Bose May 5, 2011

Page 3

IV.Communications and Service

Communications and correspondence with respect to this matter should be

addressed to the following individuals, and the following should be included on the

official service list for this proceeding:7

Daniel Galaburda

Assistant General Counsel

National Grid USA Service Company, Inc.

40 Sylvan Road

Waltham, MA 02451
Tel: (781) 907-1847

daniel.galaburda@us.ngrid.com

V.Conclusion

Sean Atkins

Stacey Tyrewala
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
Stacey.Tyrewala@alston.com

For the reasons stated herein, Niagara Mohawk respectfully requests that the Commission accept the Services Agreement effective April 27, 2011.

Copies of this filing have been served on Churchville, New York state regulators, and the NYISO.

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