March 27, 2012

VIA ELECTRONIC FILING

Ms. Kimberly D. Bose

Secretary

Federal Energy Regulatory Commission 888 First Street, NE

Washington, DC 20426

RE: Niagara Mohawk Power Corporation
Docket No. ER12-_____

Interconnection Agreement between Niagara Mohawk Power Corporation and Wheelabrator Hudson Falls L.L.C.

Request for Waiver of 60-day Prior Notice Period

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 d/b/a National Grid (“Niagara Mohawk”) submits for Commission acceptance an
Interconnection Service Agreement (“ISA” or “Agreement”) between Niagara Mohawk and Wheelabrator Hudson Falls L.L.C. (“WHF”) (collectively, the “Parties”). WHF
owns a qualifying facility (“QF”)4 that operates in Hudson Falls, New York (the
“Facility”). The Agreement provides for interconnection of the Facility to the Niagara Mohawk transmission system, for sales including power sales to third parties. The
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. 1872.

16 U.S.C. § 824d.

18 C.F.R. Part 35.

Electronic Tariff Filings, FERC Stats. & Regs. ¶ 31,276 (2008). See Docket No. QF86-778, et al.

The Honorable Kimberly D. Bose March 27, 2012

Page 2

For the reasons discussed below, Niagara Mohawk requests a waiver of the

60-day prior notice period to permit the Agreement to become effective on October 24,
2011.

I.Background

Niagara Mohawk is a public utility that owns transmission and distribution

facilities in New York. WHF is a wholly-owned, indirect subsidiary of Wheelabrator Technologies Inc., whose principal business is the development, ownership, and
operation of trash-to-energy and other waste-fueled and gas-fired QFs.

Since August 13, 1986, Niagara Mohawk has been party to a Power Purchase

Agreement (“PPA”) for all electricity produced at the Facility. The PPA was assigned to
WHF on October 2, 2003. Last year, the Parties reached a mutual agreement that the
Facility would sell to third parties in addition to Niagara Mohawk. Consequently, the
Parties agreed to terminate the PPA on October 23, 2011, and executed the ISA on
October 24, 2011.

Under Commission precedent established in Western Massachusetts Electric

Company,5 when an electric utility is obligated to interconnect under the Commission’s
regulations, the relevant state authority exercises jurisdiction over the interconnection and
allocation of interconnection costs. The Commission only exercises jurisdiction over
rates, terms and conditions of interconnection service to a QF when the electric utility
transmits the QF power in interstate commerce.6 Thus, the obligation to file the
agreement between WHF and Niagara Mohawk was only triggered by the expiration of
the PPA.

II.Interconnection Agreement

The ISA is generally in conformance with the pro forma Small Generator

Interconnection Agreement (“SGIA”) under the Open Access Transmission Tariff

(“OATT”) of the New York Independent System Operator, Inc. (“NYISO”), with only
minor modifications. The ISA has been modified to remove the NYISO as a signatory,
along with references to the NYISO as a party to the Agreement. Niagara Mohawk
understands that the NYISO does not wish to be a party to agreements like the ISA
because they relate to an existing interconnection rather than a new interconnection and
do not involve a proposed increase in capacity or material modifications to facilities.7

The Honorable Kimberly D. Bose March 27, 2012

Page 3

The ISA also includes a number of other minor modifications to the pro forma SGIA as the result of negotiations between WHF and Niagara Mohawk.

The Agreement is for a term of ten years and includes terms and conditions that
are standard for comparable interconnection agreements, including provisions addressing
the coordinated operation and maintenance of the Niagara Mohawk transmission system
and the WHF electric system, metering provisions, provisions addressing emergency
operations, insurance and liability provisions, and miscellaneous provisions.

III.Effective Date

Niagara Mohawk requests waiver of the Commission’s 60-day notice requirement to permit the Agreement to become effective on October 24, 2011. Good cause exists for such a waiver. No charges have been collected under the Agreement. The failure to file at an earlier date is the result of an administrative oversight. Granting the requested
waiver is in the public interest and consistent with other Commission orders accepting inadvertent oversights when no charges were collected.8 Waiver is also consistent with the standard set forth by the Commission in Central Hudson.9

Niagara Mohawk requests a waiver of any Commission requirements not

specifically addressed herein necessary to allow the Agreement to become effective as of October 24, 2011.

E.g. PJM Interconnection LLC, Docket ER11-3106-000 (May 4, 2011)(unpublished letter order

The Honorable Kimberly D. Bose March 27, 2012

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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:10

William L. Malee
Director, Transmission
Commercial Services
Niagara Mohawk Power
Corporation,

A National Grid Company

40 Sylvan Road

Waltham, MA 02451 (781) 907-2422

bill.malee@us.ngrid.com

Amanda C. Downey
Counsel for National Grid

40 Sylvan Road

Waltham, MA 02451-1120 781-907-2136

amanda.downey@nationalgrid.com

Sean A. Atkins

Walton H. Walker III Alston & Bird, LLP The Atlantic Building 950 F Street, NW

Washington, DC 20004 (202) 239-3300

(202) 239-3333 facsimile
sean.atkins@alston.com
walton.walker@alston.com

V.Documents Submitted in This Filing

1. This transmittal letter

2. Executed SGIA between Niagara Mohawk and WHF

VI.Conclusion

For the reasons stated herein, Niagara Mohawk respectfully requests that the Commission accept the Agreement, effective October 24, 2011.

Copies of this filing have been served on WHF, the New York State Public Service Commission, and the NYISO.

Niagara Mohawk requests waiver of 18 C.F.R. § 385.203(b) to allow four persons to be added to

The Honorable Kimberly D. Bose March 27, 2012

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Respectfully submitted,

/s/ Amanda C. Downey

Amanda C. Downey

National Grid USA Service Company, Inc.

40 Sylvan Road

Waltham, MA 02451

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