Amanda Downey
Counsel

 

 

December 12, 2011

 

VIA e-TARIFF FILING

Ms. Kimberly D. Bose Secretary

Federal Energy Regulatory Commission 888 First Street, NE

Washington, DC  20426

 

Re:Niagara Mohawk Power Company

Docket No. ER12-____

Cost Reimbursement Agreement with the Village of Solvay

 

Dear Secretary Bose:

Pursuant to Section 205 of the Federal Power Act (“FPA”), 16 U.S.C. § 824d and Part 35
of the Federal Energy Regulatory Commission’s (“Commission”) regulations, Niagara Mohawk
Power Company (“Niagara Mohawk”) d/b/a National Grid submits for Commission acceptance a
Cost Reimbursement Agreement (“Reimbursement Agreement”) between Niagara Mohawk and
the Village of Solvay (“Solvay”) 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. 1810.

Niagara Mohawk respectfully requests waiver of the Commission’s notice requirements to allow the Reimbursement Agreement to become effective on November 22, 2011, the date set forth in the Agreement.

I.Background

Niagara Mohawk is a public utility with a transmission system in the State of New York. Solvay is a municipal corporation of the State of New York with an electric distribution system that provides electric service to customers within its service territory.  Solvay is currently
interconnected to the Niagara Mohawk system pursuant to the terms of an interconnection
agreement that was filed with the Commission in Docket No. ER03-1304-000 on September 5,
2003, and accepted on October 22, 2003.  As described in the Reimbursement Agreement, the
Parties contemplate negotiating a mutually acceptable interconnection agreement which will then be submitted for Commission approval.

Solvay is making modifications to its facilities that require modifications to Niagara
Mohawk’s transmission system.  The scope of these services is set forth in Schedule A to the
Reimbursement Agreement.  Niagara Mohawk is performing these services at actual costs as set

 

 

 

 

40 Sylvan Road, Waltham, MA 02451

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


 

 

Ms. Kimberly D. Bose
December 12, 2011
Page 2

 

forth in Article I of the Reimbursement Agreement and has not collected any funds pursuant to this agreement prior to the instant filing.1

II. Jurisdictional Status of the Reimbursement Agreement

Section 205 of the FPA authorizes the Commission to require utilities to file all rates and charges that are “for or in connection with,” and all agreements that “affect or relate to,”
jurisdictional transmission service or sales of electric energy.2  In the Prior Notice Order, the Commission stated that the types of agreements that a utility must file include a “jurisdictional CIAC agreement,” which is defined as an “agreement providing for the customer payment of contributions-in-aid-of-construction” of facilities used to provide jurisdictional service, either in a single lump sum or over a period of time.3  Commission precedent also indicates that
engineering and pre-construction agreements related to jurisdictional facilities can be construed as CIAC agreements which should be filed with the Commission.4

The Reimbursement Agreement relates to engineering, procurement, and pre-construction
services that are required in connection with modifying the existing interconnection of Solvay
and relates to jurisdictional facilities, therefore, it is likely to be construed as a CIAC agreement
which should be filed for Commission approval under applicable precedent.   As noted above,
Niagara Mohawk is performing the services provided for in the Reimbursement Agreement at
actual costs, and therefore, the Commission should find that the price of these services is just and
reasonable.

III.Effective Date and Request for Waiver

Niagara Mohawk respectfully requests waiver of the 60-day notice requirement contained

in Section 35.3 of the Commission’s regulations to allow the Reimbursement Agreement to

become effective upon the effective date set forth in the Agreement, i.e., November 22, 2011.


 

 

 

 

 

 

 

 

 

 

 

 

1


 

 

 

 

 

 

See definition of “Company Reimbursable Costs.” See also Section 11.1, stating “The Company is not in


the business of performing design or construction services for profit and is not receiving any fee or profit (as


contrasted with cost reimbursement) for its performance of the work hereunder.”


 

2

 

3

 

4


16 U.S.C. §§ 824d(a), -(c).

Prior Notice Order at 61,974, 61,990.
For example, in Southern California Edison Co., 98 FERC ¶ 61,304, at 62,300-01 (2002), the Commission


found that seven letter agreements pursuant to which the utility undertook pre-interconnection activities in

anticipation of certain generator interconnections "'including procurement, engineering, and limited construction" were in essence jurisdictional CIAC agreements that must be filed with the Commission. See also GenPower
Anderson, LLC v. Duke Energy Corp. and Duke Electric Transmission, 101 FERC ¶ 61,038 (2002) (requiring Duke Energy to file with the Commission an engineering and design letter agreement entered into pending execution of an Interconnection and Operating Agreement).


 

 

Ms. Kimberly D. Bose
December 12, 2011
Page 3

 

Good cause exists for the Commission to grant this waiver as no prejudice will result to
any party.  Niagara Mohawk is working with Solvay to proceed on a timeline that would enable
the completion of engineering and procurement work in February 2012.  Granting the requested
waiver will benefit a generator interconnecting to the transmission system and is therefore
consistent with the standard set forth by the Commission in Central Hudson.5  For these reasons,
the Commission should find that good cause exists to grant an effective date of November 22,
2011.

 

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:


 

Amanda Downey Counsel

National Grid USA Service Company, Inc.

40 Sylvan Road

Waltham, MA 02451 Tel: 781-907-2136

amanda.downey@us.ngrid.com


Sean Atkins

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


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5See Central Hudson Gas & Electric Corp., 60 FERC ¶ 61,106 at 61,338, reh’g denied, 61 FERC ¶ 61,089


(1992).


 

 

Ms. Kimberly D. Bose
December 12, 2011
Page 4

 

V.Conclusion

For the reasons stated herein, NEP respectfully requests that the Commission accept the Reimbursement Agreement, effective November 22, 2011.

Copies of this filing have been served on Solvay, the New York ISO, and New York regulators.

 

 

Sincerely,

 

/s/ Sean Atkins

Sean Atkins

Alston & Bird LLP

The Atlantic Building
950 F Street, NW

Washington, DC  20004 202-239-3300

sean.atkins@alston.com