Docket No. ER26-1121-000  1

194 FERC ¶ 61,228

FEDERAL ENERGY REGULATORY COMMISSION

WASHINGTON, DC 20426

 

March 24, 2026

 

        In Reply Refer To:

New York Independent System

   Operator, Inc.

Docket No. ER26-1121-000

     

New York Independent System Operator, Inc.

10 Krey Boulevard

Rensselaer, NY 12144

 

Attention:  Alex M. Schnell

 

Dear Alex Schnell:

 

  1.                On January 23, 2026, pursuant to section 205 of the Federal Power Act (FPA)[1] and Part 35 of the Commission’s regulations,[2] New York Independent System Operator, Inc. (NYISO) submitted an Amended and Restated Interconnection Agreement (Agreement) between NYISO and Hydro-Quebec (HQ).[3]  The Agreement provides for the coordinated operation of the interconnected NYISO and HQ transmission systems in accordance with the requirements of the applicable standards authorities.[4]  As discussed below, we accept the Agreement, effective February 16, 2026, as requested.
  2.                NYISO states that it entered into the Original Interconnection Agreement (Original Agreement) with HQ on October 22, 2002 to:  (1) coordinate their operations to maintain reliability and maximize interconnected capability for each of their transmission systems; and (2) develop, administer, and implement practices, procedures, and information relating to security coordination and power system operations.[5]   
  3.                NYISO states that the parties amended the Original Agreement because NYISO and HQ determined that certain changes are needed to facilitate the integration of the new, direct current, fully controllable Champlain Hudson Power Express Merchant Transmission Facility (CHPE MTF).[6]  NYISO explains that the CHPE MTF is a         1,250 MW high-voltage direct current merchant transmission line that links the Hertel Station located near Montreal, Canada, to the Astoria Annex Substation in New York City.[7]  
  4.                NYISO states that the Agreement updates the Original Agreement to include the following revisions:  (1) updates to section 4.6 to address repayment of inadvertent energy transfers on the Hertel - Astoria Interconnection Facilities that are separate and distinct from inadvertent energy transfers that occur on the Châteauguay – Massena Interconnection Facilities and the Cedars - Dennison Interconnection Facilities; (2) updates to Schedule A to include a description of Interconnection Facilities to add the Hertel – Astoria interconnection and to address the direction in which Emergency Energy can be provided over each interconnection; and (3) updates to Schedule C to include Critical Elements associated with the Hertel – Astoria interconnection.[8]
  5.                NYISO states that the Original Agreement was not filed with the Commission.[9]  NYISO explains that the need to update the Original Agreement to accommodate the CHPE MTF prompted NYISO to evaluate whether the Agreement should be on file.  NYISO states that it is filing the Agreement because NYISO concluded that there is no basis for distinguishing the treatment of the Original Agreement from the analogous   Joint Operating Agreement between NYISO and PJM Interconnection, L.L.C. (PJM JOA) and the Coordination Agreement between ISO New England Inc. (ISO-NE) and NYISO (ISO-NE Coordination Agreement), both of which are currently on file with the Commission.[10]
  6.                NYISO contends that the Commission should accept the proposed Agreement as just and reasonable because it establishes rules that provide for the reliable operation of the interconnected HQ and NYISO systems in accordance with applicable reliability standards.[11]  NYISO explains that HQ and NYISO have decades of experience reliably operating their respective systems and agree that the proposed terms of the Agreement support such reliable operation.  NYISO states that the Agreement is also a necessary   part of NYISO’s efforts to timely integrate the CHPE MTF.  NYISO argues that the 1,250 MW of new transmission capacity offered by the CHPE MTF will help enhance system reliability and minimize congestion.  NYISO contends that the terms of the Agreement are very similar to those of other agreements that the Commission has previously accepted, specifically the PJM JOA and the ISO-NE Coordination Agreement.[12]  
  7.                NYISO requests waiver of the Commission’s prior notice requirements to permit the Agreement to become effective on February 16, 2026.[13]  NYISO contends that, in accordance with 18 C.F.R. § 35.11, there is good cause to waive the standard 60-day notice period.  NYISO argues that the February 16, 2026, effective date will enable NYISO, HQ, and CHPE LLC to commence testing on the CHPE MTF.  NYISO argues that the Commission has routinely granted requests for same-day effective dates for voluntarily negotiated two-party agreements.
  8.                Notice of NYISO’s filing was published in the Federal Register, 91 Fed. Reg. 3885 (Jan. 29, 2026), with interventions and protests due on or before February 13, 2026.  Timely motions to intervene were filed by HQ and CHPE LLC.  HQ submitted comments in support of the filing.
  9.                Pursuant to Rule 214 of the Commission’s Rules of Practice and Procedure,            18 C.F.R. § 385.214 (2025), the timely, unopposed motions to intervene serve to make     the entities that filed them parties to this proceeding.
  10.           HQ supports NYISO’s filing of the Agreement and requests that the Commission accept the Agreement without suspension or hearing.[14]  HQ argues that the Agreement provides for the safe, reliable, and coordinated operation of the NYISO and HQ transmission systems in a manner consistent with the reliability standards and with the parties’ existing practices.  HQ further contends that the Agreement will facilitate the integration and reliable operation of the CHPE MTF, which HQ argues will increase reliability and provide significant benefits in the NYISO region.
  11.           We accept the Agreement, effective February 16, 2026, as requested.[15]  We find that the Agreement is just and reasonable because it establishes rules that provide for reliable operation of the interconnected HQ and NYISO transmission systems in accordance with the applicable reliability standards.[16] 

By direction of the Commission.

 

 

Carlos D. Clay,

Deputy Secretary.

 

 

 

 

 

 

 

 

 


Appendix – Tariff Record[s] 

 

 New York Independent System Operator, Inc.

NYISO Tariffs 

 

 

[1] 16 U.S.C. § 824d.

[2] 18 C.F.R. pt. 35 (2025).

[3] See Appendix for tariff records.

[4] Filing, Transmittal Letter at 4.

[5] Id. at 2.

[6] Id.

[7] Id. at 2-3.

[8] Id. at 3.

[9] Id.

[10] Id. at 3-4.

[11] Id. at 4.

[12] Id. at 1-2, 4.

[13] Id. at 15.

[14] HQ Supporting Comments at 3.

[15] See Cent. Hudson Gas & Elec. Corp., 60 FERC ¶ 61,106, reh’g denied, 61 FERC ¶ 61,089 (1992).

[16] See, e.g. NYISO, NYISO Tariffs, NYISO OATT, 42 OATT Att JJ - Amended and Restated Interconnection Agreement (0.0.0), §§ 2.1(h), 4.3, 4.6, 4.7, 6.0.