6.12.5.2.1Formula Rate Template

Application Attachment 1

Index

Rate Formula Template

Utilizing FERC Form 1 Data

HURLEY AVENUE PROJECT - SYSTEM DISTRIBUTION UPGRADE

Appendix AMain body of the Formula Rate
Attachment 1 Detail of the Revenue Credits

Projected Annual Transmission Revenue Requirement
For the 12 months ended 5/31/21

Attachment 2Monthly Plant and Accumulated Depreciation balances

Attachment 3Cost Support Detail

Attachment 4Calculations showing the revenue requirement by Investment, including any Incentives,

Attachment 5Cost of Debt should Construction Financing be Obtained

Attachment 6a and 6bDetail of the Accumulated Deferred Income Tax Balances

Attachment 7True-Up calculations

Attachment 8Depreciation Rates

Attachment 9Workpapers

Application Attachment 1

Formula Rate - Non-LevelizedRate Formula Template

Utilizing FERC Form 1 DataProjected Annual Transmission Reve

For the 12 mont

HURLEY AVENUE PROJECT - SYSTEM DISTRIBUTION UPGRADE

(1)(2)(3)

LineAllocated

No.Amount

1GROSS REVENUE REQUIREMENT(line 74)12 months

REVENUE CREDITSTotalAllocator

2Total Revenue CreditsAttachment 1, line 6-TP-

3Net Revenue Requirement(line 1 minus line 2)-

4True-up AdjustmentAttachment 7-DA-

5NET ADJUSTED REVENUE REQUIREMENT(line 3 plus line 4)$-

Application Attachment 1

Formula Rate - Non-LevelizedRate Formula Template

Utilizing FERC Form 1 Data

For the 12 mont

HURLEY AVENUE PROJECT - SYSTEM DISTRIBUTION UPGRADE

(1)(2)(3)(4)(5)

Form No. 1Transmission

LinePage, Line, Col.Company TotalAllocator(Col 3 times Col 4)

No.RATE BASE:

GROSS PLANT IN SERVICE (Note M)

6Production(Attach 2, line 75)-NA--

7Transmission(Attach 2, line 15)-TP1.0000-

8Distribution(Attach 2, line 30)-NA--

9General & Intangible(Attach 2, lines 45 & 60)-W/S--

10TOTAL GROSS PLANT (sum lines 6-9)(GP=1 if plant =0)-GP=--

11ACCUMULATED DEPRECIATION & AMORTIZATION  (Note M)

12Production(Attach 2, line 151)-NA--

13Transmission(Attach 2, line 91)-NA--

14Distribution(Attach 2, line 106)-NA--

15General & Intangible(Attach 2, lines 121 & 136-NA--

16TOTAL ACCUM. DEPRECIATION (sum lines 12-15)--

17NET PLANT IN SERVICE

18Production(line 6- line 12)--

19Transmission(line 7- line 13)--

20Distribution(line 8- line 14)--

21General & Intangible(line 9- line 15)--

22TOTAL NET PLANT (sum lines 18-21)(NP=1 if plant =0)-NP=--

23ADJUSTMENTS TO RATE BASE(Note A)

24ADIT(Attach 6a, line 9)#DIV/0!DA1.0000#DIV/0!

24bTax Reform(Attach 11a, line 8)#REF!#REF!

25Account No. 255 (enter negative) (Note F)(Attach 3, line 153)-NP--

26CWIP(Attach 10)-DA-

27Unfunded Reserves (enter negative)(Attach 3, line 170a)-DA1.0000-

28Unamortized Regulatory Assets(Attach 10)  (Note L)-DA1.0000-

29Unamortized Abandoned Plant(Attach 10) (Note K)-DA1.0000-

30TOTAL ADJUSTMENTS  (sum lines 24-29)#DIV/0!#DIV/0!

31LAND HELD FOR FUTURE USEAttachment 10-NA1.0000-

32WORKING CAPITAL  (Note C)

33CWCcalculated (1/8 * Line 45)9,045,405#DIV/0!

34Materials & Supplies  (Note B)(Attach 3, line 189)-NA1.0000-

35Prepayments (Account 165 - Note C)(Attach 3, line 170)-GP--

36TOTAL WORKING CAPITAL (sum lines 33-35)9,045,405#DIV/0!

37RATE BASE  (sum lines 22, 30, 31, & 36)#DIV/0!#DIV/0!

Application Attachment 1

Formula Rate - Non-LevelizedRate Formula Template

Utilizing FERC Form 1 Data

For the 12 mont

HURLEY AVENUE PROJECT - SYSTEM DISTRIBUTION UPGRADE

(1)(2)(3)(4)(5)

Form No. 1Transmission

Page, Line, Col.Company TotalAllocator(Col 3 times Col 4)

38O&M

39Transmission321.116.b11,753,917AGP#DIV/0!#DIV/0!

40Less Accounts 565, 561 and 561.1 to 561.8321.99.b & 87.b to 94.b2,321,480AGP#DIV/0!#DIV/0!

41A&G323.205.b62,930,800W/S#DIV/0!#DIV/0!

42Less EPRI & Reg. Comm. Exp. & Other  Ad.(Note D & Attach 3, line 171)-W/S#DIV/0!#DIV/0!

43Plus Transmission Related Reg. Comm.  Exp.(Note D & Attach 3, line 172)-AGP#DIV/0!#DIV/0!

44PBOP expense adjustment(Attach 3, line 243)-AGP#DIV/0!#DIV/0!

44aLess Account 566321.100.b1,103,807W/S#DIV/0!#DIV/0!

44bAmortization of Regulatory Assets(Attach 10, line 2)-W/S#DIV/0!#DIV/0!

44cAccount 566 excluding amort. of Reg Assets(line 44a less line 44b)1,103,807W/S#DIV/0!#DIV/0!

45TOTAL O&M   (sum lines 39, 41, 43, 44, 44b, 44c less lines 40 & 42, 44a) (Note D)72,363,237#DIV/0!

46DEPRECIATION EXPENSE

47Transmission336.7.f-DA1.0000-

48General and Intangible336.1.f + 336.10.f-W/S1.0000-

49Amortization of Abandoned Plant(Attach 3, line 155) (Note K)-DA1.0000-

50TOTAL DEPRECIATION (Sum lines 47-49)--

51TAXES OTHER THAN INCOME TAXES  (Note E)

52LABOR RELATED

53Payroll263.3.i +263.4.i + 263.12.i42,567,300W/S#DIV/0!#DIV/0!

54Highway and vehicle263._.i (enter FN1 line #)-W/S#DIV/0!#DIV/0!

55PLANT RELATED

56Property263.24.i +263.25.i39,087,352AEP#DIV/0!#DIV/0!

57Gross Receipts263.14.i +263.26.i(7,259)NA--

58Other263.15.i720AEP#DIV/0!#DIV/0!

59TOTAL OTHER TAXES  (sum lines 53-58)81,648,113#DIV/0!

60INCOME TAXES(Note F)

61T=1 - {[(1 - SIT) * (1 - FIT)] / (1 - SIT * FIT * p))}*(1-n) =0.26140.2614

62CIT=(T/1-T) * (1-(WCLTD/R)) =#DIV/0!#DIV/0!

63where WCLTD=(line 95) and R= (line 98)

64and FIT, SIT, p, & n are as given in footnote F.

651 / (1 - T)  = (T from line 61)1.35381.354

66Amortized Investment Tax Credit (Attachment 4, line 14)-

67Income Tax Calculation = line 62 * line 71 * (1-n)#DIV/0!#DIV/0!

68ITC adjustment (line 65 * line 66 * (1- n))-NP--

69Total Income Taxes(line 67 plus line 68)#DIV/0!#DIV/0!

70RETURN

71[ Rate Base (line 37) * Rate of Return (line 98)]#DIV/0!NA#DIV/0!

72Rev Requirement before Incentive Projects  (sum lines 45, 50, 59, 69, 71)#DIV/0!#DIV/0!

73Incentive Return and Income Tax on Authorized Projects (Attach 4, line 58, col h)#DIV/0!DA100%#DIV/0!

74Total Revenue Requirement  (sum lines 72 & 73)#DIV/0!#DIV/0!

Application Attachment 1

Formula Rate - Non-LevelizedRate Formula Template

Utilizing FERC Form 1 Data

For the 12 mont

HURLEY AVENUE PROJECT - SYSTEM DISTRIBUTION UPGRADE

SUPPORTING CALCULATIONS AND NOTES

75TRANSMISSION PLANT INCLUDED IN RTO RATES

76Total transmission plant(line 7, column 3)-

77Less transmission plant excluded from RTO rates(Note H)(Attachment 3, line 175)2,557,690.00

78Less transmission plant included in OATT Ancillary Services(Note H)(Attachment 3, line 175)-

79Transmission plant included in RTO rates  (line 76 less lines 77 & 78)2,557,690.00

80Percentage of transmission plant included in RTO Rates (line 79 divided by line 76) [If line 76 equal zero, enter 1)TP=1.0000

81ADJUSTED TRANSMISSION PLANT INCLUDED IN RTO RATES

82Total transmission plant(line 15, column 3)-

Plus CIAC Reveived (O&M, A&G and Taxes other than income would be on full amount)17,621,749.00

83Total Adjusted Transmission Plant17,621,749.00

Transmission plant included in RTO rates  (line 82 less lines  & 83)-

84AGP=#DIV/0!

81ADJUSTED  PLANT INCLUDED IN RTO RATES

82Total transmission plant(line 22, column 3)-

Plus CIAC Reveived (O&M, A&G and Taxes other than income would be on full amount)17,621,749.00

83Total Adjusted Transmission Plant17,621,749.00

Total Gross Plant-

84AEP=#DIV/0!

=WS

85WAGES & SALARY ALLOCATOR   (W&S) (Note I)

86Form 1 Reference$AGPAllocation

87Production354.20.b2,692,974.000.00-

88Transmission354.21.b3,389,676.00#DIV/0!#DIV/0!Weighted

89Distribution354.23.b25,895,435.000.00-W&S Allocator#DIV/0!=WCLTD

90Other354.24,25,26.b31,336,359.000.00-($ / Allocation)-

91Total(sum lines 87-90) [TP equals 1 if there are no wages & salaries]63,314,444.00#DIV/0!=#DIV/0!#DIV/0!

#DIV/0!=R

92RETURN (R)(Note J)

93

94$%Cost

95Long Term Debt(Attach 3, lines 249 & 270 or Attach 5) (Note G)-#DIV/0!#DIV/0!

96Preferred Stock(Attachment 3, lines 251 & 273)100.00--

97Common Stock(Attachment 3, line 257)(100.00)#DIV/0!10.60%

98Total(sum lines 95-97)-

Development of Base Carrying charge and Summary of Incentive and Non-Incentive Investments(a)(b)

Non-incentiveIncentive

Investments fromInvestments from

Attachment 4Attachment 4

Source of Total Column(Note N)(Note N)

99Net Transmission Plant in Service(Line 19 and Transmission CIACs)-#DIV/0!

100CWIP in Rate Base(Line 26)--

101Unamortized Abandoned Plant(Line 29)-

102Regulatory Assets(Line 28)-

103Development of Base Carrying charge and Summary of Incentive and Non-Incentive Investments--

104Return and Taxes(Lines 69 & 71)

Application Attachment 1

105Total Revenue Credits

106Base Carrying Charge (used in Attach 4, Line 65)(Line 100 - Line 101)/ Line 99

For the 12 mont

SUPPORTING CALCULATIONS AND NOTES

Formula Rate - Non-LevelizedRate Formula Template

Utilizing FERC Form 1 Data

HURLEY AVENUE PROJECT - SYSTEM DISTRIBUTION UPGRADE

General Note:  References to pages in this formulary rate are indicated as:  (page#, line#, col.#)

Note
Letter

A

B
C

D

E

F

G

I
J

References to data from FERC Form 1 are indicated as:  #.y.x (page, line, column)

The balances in Accounts 190, 281, 282 and 283, as adjusted by any amounts in contra accounts identified as regulatory assets or liabilities related
to FASB 106 or 109.  The formula uses the stated average of the beginning and end of year balances to prorate ADIT to comply with IRS normalization rules.  Balance of Account 255

is reduced by prior flow throughs and excluded if the utility chose to utilize amortization of tax credits against taxable income as discussed in Note F.  Account 281 is not allocated. Identified in Form 1 as being only transmission related.

Cash Working Capital assigned to transmission is one-eighth of O&M allocated to transmission

Prepayments are the electric related prepayments booked to Account No. 165 and reported on Pages 110-111 line 57 in the Form 1. Line 42 removes EPRI Annual Membership Dues listed in Form 1 at 353._.f (enter FN1 line #),

any  EPRI Lobbying expenses included in line 42 of the template and all Regulatory Commission Expenses itemized at 351.h Line 42 removes all advertising  included in Account 930.1, except safety, education or out-reach related advertising

Line 42 removes all EEI and EPRI research, development and demonstration expenses and NY Transco will not participate in EEI or EPRI. Line 43 reflects all Regulatory Commission Expenses directly related to transmission service, RTO filings, or transmission siting itemized at 351.h Line 38 or Line 41 and thus Line 45 shall include any NYISO charges other than penalties, including but not limited to administrative costs. Includes only FICA, unemployment, highway, property, gross receipts, and other assessments charged in the current year.

Taxes related to income are excluded.  Gross receipts taxes are not included in transmission revenue requirement in the Rate Formula Template,
since they are recovered elsewhere.

The currently effective income tax rate,  where FIT is the Federal income tax rate; SIT is the State income tax rate, and p =
"the percentage of federal income tax deductible for state income taxes".  If the utility is taxed in more than one state it must attach a

work paper showing the name of each state and how the blended or composite SIT was developed.  Furthermore, a utility that
elected to utilize amortization of tax credits against taxable income, rather than book tax credits to Account No. 255 and reduce
rate base.

multiplied by (1/1-T) .0.7250

Inputs Required:FIT =0.210.2750

SIT=0.0650(State Income Tax Rate or Composite SIT from Attach 3)

p =-(percent of federal income tax deductible for state purposes)

n=-(not for profit entity ownership percentage)

For each Rate Year (including both Annual Projections and True-Up Adjustments) the statutory income tax rates utilized in the Formula Rate shall reflect the weighted average rates
actually in effect during the Rate Year.  For example, if the statutory tax rate is 10% from January 1 through June 30, and 5% from July 1 through December 31, such rates would be weighted

181/365 and 184/365, respectively, for a non-leap year.

The cost of debt is determined using the internal rate of return methodology shown on Attachment 5 once project financing is obtained.  Prior to obtaining project financing, an interest rate of 3.85% from Table 4 of Attachment 5 will be used and will not be trued up.  Attachment 5 contains an estimate of the internal rate of return methodology; the methodology will be applied to actual amounts for use in Appendix A.

After the completion of construction, the  cost of debt will be calculated pursuant to Attachment 3

step-up facilities, which are deemed to included in OATT ancillary services.  For these purposes, generation step-up
facilities are those facilities at a generator substation on which there is no through-flow when the generator is shut down.
Enter dollar amounts

ROE will be supported in the original filing and no change in ROE may be made absent a filing with FERC under FPA Section 205 or 206. The capital structure will be the actual capital

structure up to 53% equity   Lines 93 will be capped

Application Attachment 1

Appendix A

Page 1 of 5

nue Requirement
hs ended 5/31/21

Application Attachment 1

Appendix A

Page 2 of 5

hs ended 5/31/21

Application Attachment 1

Appendix A

Page 3 of 5

hs ended 5/31/21

Application Attachment 1

Appendix A

Page 4 of 5

hs ended 5/31/21

(c)

Total

2,557,690

-

-

-

2,557,690
#DIV/0!

-

#DIV/0!

Application Attachment 1

Appendix A

Page 5 of 5

hs ended 5/31/21

Application Attachment 1

Attachment 1 - Revenue Credit Workpaper*

HURLEY AVENUE PROJECT - SYSTEM DISTRIBUTION UPGRADE

Account 454 - Rent from Electric Property  (300.19.b)Notes 1 & 3

1 Rent from FERC Form No. 1-

Account 456 (including 456.1) (300.21.b and 300.22.b)Notes 1 & 3

2 Other Electric Revenues (Note 2)-

3 Professional Services-

4 Revenues from Directly Assigned Transmission Facility Charges (Note 2)-

5 Rent or Attachment Fees associated with Transmission Facilities-

6 Total Revenue CreditsSum lines 2-5 + line 1-

Note 1 All revenues booked to Account 454 that are derived from cost items classified as transmission-related will be included as a revenue credit.  All revenues booked to Account

456 (includes 456.1) that are derived from cost items classified as transmission-related, and are not derived from rates under this transmission formula rate will be included as a revenue credit.   Work papers will be included to properly classify revenues booked to these accounts to the transmission function.  A breakdown of all Account 454 revenues by subaccount will be provided below, and will be used to derive the proper calculation of revenue credits.  A breakdown of all Account 456 revenues by subaccount and
customer will be provided and tabulated below, and will be used to develop the proper calculation of revenue credits.

Note 2

If the facilities associated with the revenues are not included in the formula, the revenue is shown below, but not included in the total above and explained in the Attachment 3.

Note 3All Account 454 and 456 Revenues must be itemized below

Line No.

1Account 456TOTALNY-ISOOther 1Other 2

1aTransmission Service--

…----

1xTrans. Fac. Charge----

2Trans Studies----

3Total----

4Less:

5Revenue for Demands in Divisor----

6Sub Total Revenue Credit----

7Prior Period Adjustments----

8Total----

9Account 454$

9aJoint pole attachments - telephone-

9bJoint pole attachments - cable-

9cUnderground rentals-

9dTransmission tower wireless rentals-

9eMisc non-transmission rentals-

9f-

9g-

…

9x-

10Total-

Application Attachment 1

Attachment 2 - Cost Support

HURLEY AVENUE PROJECT - SYSTEM DISTRIBUTION UPGRADE

Plant in Service Worksheet

1Calculation of Transmission  Plant In ServiceSourceYearBalance

2Marchcompany records2018

3Aprilcompany records2018

4Maycompany records2018

5Junecompany records2018

6Julycompany records2018

7Augustcompany records2018

8Septembercompany records2018

9Octobercompany records2018

10Novembercompany records2018

11Decemberp207.58.g2018

12Januarycompany records2019

13Februarycompany records2019

14Marchcompany records2019

15Transmission Plant In Service(sum lines 2-14) /13

16Calculation of Distribution Plant In ServiceSource

17Marchcompany records2018

18Aprilcompany records2018

19Maycompany records2018

20Junecompany records2018

21Julycompany records2018

22Augustcompany records2018

23Septembercompany records2018

24Octobercompany records2018

25Novembercompany records2018

26Decemberp207.75.g2018

27Januarycompany records2019

28Februarycompany records2019

29Marchcompany records2019

30Distribution Plant In Service(sum lines 17-29) /13

Application Attachment 1

31Calculation of Intangible Plant In ServiceSource

32Marchcompany records2018

33Aprilcompany records2018

34Maycompany records2018

35Junecompany records2018

36Julycompany records2018

37Augustcompany records2018

38Septembercompany records2018

39Octobercompany records2018

40Novembercompany records2018

41Decemberp205.5.g2018

42Januarycompany records2019

43Februarycompany records2019

44Marchcompany records2019

45Intangible Plant In Service(sum lines 32-44) /13

46Calculation of General Plant In ServiceSource

47Marchcompany records2018

48Aprilcompany records2018

49Maycompany records2018

50Junecompany records2018

51Julycompany records2018

52Augustcompany records2018

53Septembercompany records2018

54Octobercompany records2018

55Novembercompany records2018

56Decemberp207.99.g2018

57Januarycompany records2019

58Februarycompany records2019

59Marchcompany records2019

60General Plant In Service(sum lines 47-59) /13

Application Attachment 1

61Calculation of Production Plant In ServiceSource

62Marchcompany records2018

63Aprilcompany records2018

64Maycompany records2018

65Junecompany records2018

66Julycompany records2018

67Augustcompany records2018

68Septembercompany records2018

69Octobercompany records2018

70Novembercompany records2018

71Decemberp205.46.g2018

72Januarycompany records2019

73Februarycompany records2019

74Marchcompany records2019

75Production Plant In Service(sum lines 62-74) /13

76Total Plant In Service(sum lines 15, 30, 45, 60, & 75)-

Accumulated Depreciation Worksheet

Appendix A Line #s, Descriptions, Notes, Form 1 Page #s and Instructions

77Calculation of Transmission Accumulated DepreciationSourceYearBalance

78Marchcompany records2018

79Aprilcompany records2018

80Maycompany records2018

81Junecompany records2018

82Julycompany records2018

83Augustcompany records2018

84Septembercompany records2018

85Octobercompany records2018

86Novembercompany records2018

87Decemberp219.25.b2018

88Januarycompany records2019

89Februarycompany records2019

90Marchcompany records2019

91Transmission Accumulated Depreciation(sum lines 78-90) /13

Application Attachment 1

92Calculation of Distribution Accumulated DepreciationSource

93Marchcompany records2018

94Aprilcompany records2018

95Maycompany records2018

96Junecompany records2018

97Julycompany records2018

98Augustcompany records2018

99Septembercompany records2018

100Octobercompany records2018

101Novembercompany records2018

102Decemberp219.25.b2018

103Januarycompany records2019

104Februarycompany records2019

105Marchcompany records2019

106Distribution Accumulated Depreciation(sum lines 93-105) /13-

107Calculation of Intangible Accumulated AmortizationSource

108Marchcompany records2018

109Aprilcompany records2018

110Maycompany records2018

111Junecompany records2018

112Julycompany records2018

113Augustcompany records2018

114Septembercompany records2018

115Octobercompany records2018

116Novembercompany records2018

117Decemberp200.21.c2018

118Januarycompany records2019

119Februarycompany records2019

120Marchcompany records2019

121Accumulated Intangible Amortization(sum lines 108-120) /13-

Application Attachment 1

122Calculation of General Accumulated DepreciationSource

123Marchcompany records2018

124Aprilcompany records2018

125Maycompany records2018

126Junecompany records2018

127Julycompany records2018

128Augustcompany records2018

129Septembercompany records2018

130Octobercompany records2018

131Novembercompany records2018

132Decemberp219.28.b2018

133Januarycompany records2019

134Februarycompany records2019

135Marchcompany records2019

136Accumulated General Depreciation(sum lines 123-135) /13-

137Calculation of Production Accumulated DepreciationSource

138Marchcompany records2018

139Aprilcompany records2018

140Maycompany records2018

141Junecompany records2018

142Julycompany records2018

143Augustcompany records2018

144Septembercompany records2018

145Octobercompany records2018

146Novembercompany records2018

147Decemberp219.20 thru 219.24.b2018

148Januarycompany records2019

149Februarycompany records2019

150Marchcompany records2019

151Production Accumulated Depreciation(sum lines 138-150) /13

152Total Accumulated Depreciation and Amortization(sum lines 91, 106, 121, 136, & 151)-

Application Attachment 1

Attachment 3 - Cost Support

HURLEY AVENUE PROJECT - SYSTEM DISTRIBUTION UPGRADE

Details

Numbering continues from Attachment 2Beginning of YearEnd of YearAverage Balance

153Account No. 255 (enter negative)267.8.h---

154Unamortized Abandoned PlantAttachment 10, line 2, col. (v)-

(recovery of abandoned plant requires a FERC order approving the amount and recovery period)Amortization Expense

155Amortization of Abandoned PlantAttachment 10, line 2, col. (h)-

156Prepayments (Account 165)

(Prepayments exclude Prepaid Pension Assets)YearBalance

157March111.57.c2018

158Aprilcompany records2018

159Maycompany records2018

160June111.57.c2018

161Julycompany records2018

162Augustcompany records2018

163September111.57.c2018

164Octobercompany records2018

165Novembercompany records2018

166December111.57.c2018

167Januarycompany records2019

168Februarycompany records2019

169March111.57.c2019

170Prepayments(sum lines 157-169) /13-

Reserves

170a(b)(c)(d)(e)(f)(g)(h)

Enter 1 if NOT in aEnter 1 if the accrualEnter the percentage

trust or reservedaccount is included inpaid for by customers, 1

account, enter zerothe formula rate, enter (0)less the percent

(0) if included in aif  O if the accrualassociated with anAmount Allocated,

trust or reservedaccount is NOT includedoffsetting liability onAllocation (Plant orcol. c x col. d x col.

Amountaccountin the formula ratethe balance sheetLabor Allocator)e x col. f x col. g

Injuries & Damages Reserve 112.27.d1----

Reserve 2------

Reserve 3------

Reserve 4------

…------

…------

Total-

All unfunded reserves will be listed above, specifically including (but not limited to) all subaccounts for FERC Account Nos. 228.1 through 228.4.  "Unfunded reserve" is defined as an accrued balance (1)

created and increased by debiting an expense which is included in this formula rate (column (e), using the same allocator in column (g) as used in the formula to allocate the amounts in the corresponding

expense account)  (2) in advance of an anticipated expenditure related to that expense (3) that is not deposited in a restricted account (e.g., set aside in an escrow account, see column (d)) with the earnings

thereon retained within that account.  Where a given reserve is only partially funded through accruals collected from customers, only the balance funded by customer collections shall serve as a rate base credit, see column (f).  The source of monthly balance data is company records.

Application Attachment 1

Application Attachment 1

EPRI Dues Cost Support

EPRI & EEI Costs to be ExcludedDetails

Allocated General & Common Expenses

EPRI Dues

171EPRI and EEI Dues to be excluded from the formula ratep353._.f (enter FN1 line #)-

Regulatory Expense Related to Transmission Cost Support

Transmission

Form 1 AmountRelatedOtherDetails*

Directly Assigned A&G

172Regulatory Commission Exp Account 928p323.189.b--

* insert case specific detail and associated assignments here

Multi-state Workpaper

New YorkMTANYCWeighed Average

Income Tax Rates

Weighting100

173SIT=State Income Tax Rate or Composite6.50%0.00%0.00%6.50%

Multiple state rates are weighted based on the state apportionment factors on the state income tax returns and the number of days in the year that the rates are effective (see Note F)

Safety Related and Education and Out Reach Cost Support

Safety Related,

Education, Siting &

Form 1 AmountOutreach RelatedOtherDetails

Directly Assigned A&G

174General Advertising Exp Account 930.1company records-

Safety advertising consists of any advertising whose primary purpose is to educate the recipient as to what is safe or is not safe.

Education advertising consists of any advertising whose primary purpose is to educate the recipient as about transmission related facts or issues Outreach advertising consists of advertising whose primary purpose is to attract the attention of the recipient about a transmission related issue Siting advertising consists of advertising whose primary purpose is to inform the recipient about locating transmission facilities
Lobbying expenses are not allowed to be included in account 930.1

Excluded Plant Cost Support

Transmission plant

included in OATT

ExcludedAncillary Services

Transmissionand not otherwise

FacilitiesexcludedDescription of the Facilities

Adjustment to Remove Revenue Requirements Associated with Excluded Transmission Facilities

175Excluded Transmission Facilities2,557,690-All other Transmission Assets besides the Hurley Ave Smart Wires

Add more lines if necessary

Application Attachment 1

Materials & Supplies

Stores ExpenseTransmission MaterialsConstruction Materials

Note:  for the projection, the prior year's actual balances will be usedUndistributed& Supplies& SuppliesTotal

Form No.1 pagep227.16p227.8p227.5

176MarchCompany Records--

177AprilCompany Records--

178MayCompany Records--

179JuneCompany Records--

180JulyCompany Records--

181AugustCompany Records--

182SeptemberCompany Records--

183OctoberCompany Records--

184NovemberCompany Records--

185DecemberColumn c--

186JanuaryCompany Records--

187FebruaryCompany Records--

188MarchCompany Records--

189Average-

Application Attachment 1

PBOPs

Details

189Calculation of PBOP Expenses

190ConEd

191Total PBOP expenses

192Labor dollars

193Cost per labor dollar

194labor (labor not capitalized) current yearCompany Records

195PBOP Expense for current year

196PBOP Expense in Account 926 for current yearCompany Records

197PBOP Adjustment for Appendix A, Line 44

198Lines 191-193 cannot change absent approval or acceptance by FERC in a separate proceeding.

198NiMo

199Total PBOP expenses

200Labor dollars

201Cost per labor dollar

202labor (labor not capitalized) current yearCompany Records

203PBOP Expense for current year

204PBOP Expense in Account 926 for current yearCompany Records

205PBOP Adjustment for Appendix A, Line 44

206Lines 199-201 cannot change absent approval or acceptance by FERC in a separate proceeding.

207NYSEG

208Total PBOP expenses

209Labor dollars

210Cost per labor dollar

211labor (labor not capitalized) current yearCompany Records

212PBOP Expense for current year

213PBOP Expense in Account 926 for current yearCompany Records

214PBOP Adjustment for Appendix A, Line 44

215Lines 208-210 cannot change absent approval or acceptance by FERC in a separate proceeding.

Application Attachment 1

216RGE

217Total PBOP expenses

218Labor dollars

219Cost per labor dollar

220labor (labor not capitalized) current yearCompany Records

221PBOP Expense for current year

222PBOP Expense in Account 926 for current yearCompany Records

223PBOP Adjustment for Appendix A, Line 44

224Lines 217-219 cannot change absent approval or acceptance by FERC in a separate proceeding.

225CHG&E

226Total PBOP expenses

227Labor dollars

228Cost per labor dollar

229labor (labor not capitalized) current yearCompany Records

230PBOP Expense for current year

231PBOP Expense in Account 926 for current yearCompany Records

232PBOP Adjustment for Appendix A, Line 44

233Lines 226-228 cannot change absent approval or acceptance by FERC in a separate proceeding.

234HURLEY AVENUE PROJECT - SYSTEM DISTRIBUTION UPGRADE

235Total PBOP expenses

236Labor dollars

237Cost per labor dollar

238labor (labor not capitalized) current yearCompany Records

239PBOP Expense for current year

240PBOP Expense in Account 926 for current yearCompany Records

241PBOP Adjustment for Appendix A, Line 44

242Lines 235-237 cannot change absent approval or acceptance by FERC in a separate proceeding.

243PBOP expense adjustment(sum lines 197, 214, 205, 223, 232, & 241)

Application Attachment 1

Attachment 3 - Cost Support

COST OF CAPITALHURLEY AVENUE PROJECT - SYSTEM DISTRIBUTION UPGRADE

Line No.DescriptionForm No.1ReferenceMarchAprilMayJuneJulyAugustSeptemberOctoberNovemberDecemberJanuaryFebruaryMarch13 Month Avg.

Col. (c)company recordscompany recordsCol. (c)company recordscompany recordsCol. (c)company recordscompany recordsCol. (c)company recordscompany recordsCol. (c)Col. (n)

244Long Term Debt:

245Acct 221 Bonds112.18.c,d------------

246Acct 223 Advances from Assoc. Companies112.20.c,d------------

247Acct 224 Other Long Term Debt112.21.c,d

248Less  Acct 222 Reacquired Debt112.19 c, d enter negative------------

249250Total Long Term DebtSum Lines 244 - 248------------

251252Preferred Stock112.3.c,d100100100100100100100100100100100100100100

253Common Equity- Per Books112.16.c,d

254Less Acct 204 Preferred Stock112.3.c,d100100100100100100100100100100100100100100

255Less Acct 219 Accum Other Compre. Income112.15.c,d---------

Less Acct 216.1 Unappropriated Undistributed

256Subsidiary Earnings112.12.c,d------------

257258Adjusted Common EquityLn 253 - 254 - 255 - 256(100)(100)(100)(100)(100)(100)(100)(100)(100)(100)(100)( 100)( 100)(100)

259260Total (Line 249 plus Line 251 plus Line 257)------------

261Cost of Debt

262Acct 427 Interest on Long Term Debt117.62.c-

263Acct 428 Amortization of Debt Discount and117.63.c-

264Acct 428.1 Amortization of Loss on Reacquired Debt117.64.c-

Acct 430 Interest on Debt to Assoc. Companies (LTD

265portion only) (2)117.67.c------------

266Less:  Acct 429 Amort of Premium on Debt117.65.c enter negative------------

267Reacquired Debt117.66.c enter negative------------

268Total Interest ExpenseSum Lines 262 - 267------------

269270Average Cost of Debt (Line 268 / Line 249)#DIV/0!

271272Cost of Preferred Stock

273274Preferred Stock Dividends118.29.c------------

275Average Cost of Preferred Stock (Line 273 / Line 251)------------

Note 2.  Interest on Debt to Associated Companies (FERC 430) will be populated with interest related to Long-Term Debt only.

Application Attachment 1

Incentive ROE and 60/40 Project WorksheetRate Formula TemplateFor  the 12 months ended 12/31/2019

Attachment 4Utilizing Appendix A Data

The calculations below calculate that additional revenue requirement for 100 basis points of ROE and 1 percent change in the equity component of the capital structure.

These amounts are then used to calculate the actual increase in  revenue in the table below (starting on line 66) associated with the actual incentive authorized by the Commission The use of the 100 basis point calculations do not presume any particular incentive (i.e., 100 basis points) being granted by the Commission.

HURLEY AVENUE PROJECT - SYSTEM DISTRIBUTION UPGRADE

Base ROE and Income Taxes Carrying Charge

AllocatorResult

1Rate Base#DIV/0!

2BASE RETURN CALCULATION:

$%CostWeighted

3Long Term Debt(Appendix A, Line 91)-#DIV/0!#DIV/0!#DIV/0!

4Preferred Stock(Appendix A, Line 92)1000%0.00%0.00%

5Common Stock(Appendix A, Line 93)(100)#DIV/0!10.60%#DIV/0!

6Total  (sum lines 3-5)-#DIV/0!

7Return multiplied by Rate Base (line 1 * line 6)#DIV/0!

8INCOME TAXES

9T=1 - {[(1 - SIT) * (1 - FIT)] / (1 - SIT * FIT * p)} =  (Appendix A, line 61)0.2614

10CIT=(T/1-T) * (1-(WCLTD/R)) =#DIV/0!

11where WCLTD=(line 3) and R= (line 6)

12and FIT, SIT & p are as given in footnote F on Appendix A.

131 / (1 - T)  = (T from line 9)1.3538

14Amortized Investment Tax Credit (266.8f) (enter negative)-

15Income Tax Calculation = line 10 * line 7 * (1-n)#DIV/0!#DIV/0!

16ITC adjustment (line 13 * line 14)  * (1-n)-NP--

17Total Income Taxes(line 15 plus line 16)#DIV/0!#DIV/0!

18Base Return and Income TaxesSum lines 7 and 17#DIV/0!

19Rate BaseLine 1#DIV/0!

20Return and Income Taxes at Base ROELine 18 / line 19#DIV/0!

Application Attachment 1

100 Basis Point Incentive ROE and Income Taxes Carrying ChargeAttachment 4

Result

21Rate Base#DIV/0!

22100 Basis Point Incentive Return impact on

$%CostWeighted

23Long Term Debt(line 3)-#DIV/0!#DIV/0!#DIV/0!

24Preferred Stock(line 4)100.000%0.00%-

25Common Stock(line 5 plus 100 basis points)(100.00)#DIV/0!11.60%#DIV/0!

26Total  (sum lines 24-26)-#DIV/0!

27100 Basis Point Incentive Return multiplied by Rate Base (line 21 * line 26)#DIV/0!

28INCOME TAXES

29T=1 - {[(1 - SIT) * (1 - FIT)] / (1 - SIT * FIT * p)} =  (Appendix A, line 61)0.2614

30CIT=(T/1-T) * (1-(WCLTD/R)) =#DIV/0!

31where WCLTD=(line 23) and R= (line 26)

32and FIT, SIT & p are as given in footnote F on Appendix A.

331 / (1 - T)  = (T from line 29)1.3538

34Amortized Investment Tax Credit (line 14)-

35Income Tax Calculation = line 30 * line 27 * (1-n)#DIV/0!#DIV/0!

36ITC adjustment (line 33 * line 34)  * (1-n)-NP--

37Total Income Taxes(line 35 plus line 36)#DIV/0!#DIV/0!

38Return and Income Taxes with 100 basis point increase in ROESum lines 27 and 37#DIV/0!

39Rate BaseLine 21#DIV/0!

40Return and Income Taxes with 100 basis point increase in  ROELine 38 / line 39#DIV/0!

41Difference in Return and Income Taxes between Base ROE and 100 Basis Point IncentiveLine 41- Line 20#DIV/0!

Effect of 1% Increase in the Equity Ratio

Results

42Rate Base#DIV/0!

43100 Basis Point Incentive Return

$%CostWeighted

44Long Term Debt(line 3 minus 1% in equity ratio)-#DIV/0!#DIV/0!#DIV/0!

45Preferred Stock(line 4)-0%0.00%0.00%

46Common Stock(line 5 plus 1% in equity ratio))-#DIV/0!10.60%#DIV/0!

47Total  (sum lines 44-46)-#DIV/0!

48Line 47 x line 42#DIV/0!

49INCOME TAXES

50T=1 - {[(1 - SIT) * (1 - FIT)] / (1 - SIT * FIT * p)} =  (Appendix A, line 61)0.2614

51CIT=(T/1-T) * (1-(WCLTD/R)) =#DIV/0!

52where WCLTD=(line 44) and R= (line 47)

53and FIT, SIT & p are as given in footnote F on Appendix A.

541 / (1 - T)  = (T from line 50)1.3538

55Amortized Investment Tax Credit (line 14)-

56Income Tax Calculation = line 51 * line 48 * (1-n)#DIV/0!#DIV/0!

57ITC adjustment (line 54 * line 55)  * (1-n)-NP--

58Total Income Taxes(line 56 plus line 57)#DIV/0!#DIV/0!

59Return and Income Taxes with 1% Increase in the Equity RatioSum lines 48 and 58#DIV/0!

60Rate BaseLine 42#DIV/0!

61Return and Income Taxes with 1% Increase in the Equity RatioLine 59 / line 60#DIV/0!

62Difference between Base ROE and 1% Increase in the Equity RatioLine 61 - Line 20#DIV/0!

Application Attachment 1

Attachment 4

63Revenue Requirement per project including incentives

64Expense Allocator[Appendix A, lines 45 and 59, less Appendix A, line 44b / Gross Transmission Plant In Service Column (l)] (Note B)#DIV/0!

65Base Carrying Charge (used in ALine 102 Appendix A#DIV/0!

The table below  breaks out the total revenue requirement on Appendix A separately  for each investment.  The total of Column (p) must equal the amount shown on Appendix A, Line 3.

(a)(b)(c)(d)(e)(f)(g)(h)(i)(j)(k)(l)(m)(n)(o)(p)

ROE BaseEquity % in CapitalImpact of Equity

ROE Authorized(FromIncentive %Structure (% aboveComponent of CapitalGross Plant InExpenseO&M, Taxes OtherDepreciation/AmTotal Revenues

Net Investmentby FERC (NoteAppendix A,Authorized byCol (e) / .01 xIncentive $ (Colbase %, -% below baseStructure(Col (b) x (i)Base Return and Tax (Line 65 xService (NoteAllocatorthan Incomeortization(Col. (h) + (j) +

LineDescription(Note A)C)line 93)FERCLine 41Col (f)(b) x Col (g)%)(1 equals 1%)x Line 62Col (b)B)(line 64)(Col. (l) x Col. (n)Expense(k) +(n) +(o))

66Up to 228 million#DIV/0!9.5%10.60%0.005#DIV/0!#DIV/0!#DIV/0!-#DIV/0!#DIV/0!#DIV/0!#DIV/0!#DIV/0!#DIV/0!#DIV/0!

66a   Over 228 million-9.5%10.60%-#DIV/0!#DIV/0!#DIV/0!-#DIV/0!#DIV/0!#DIV/0!#DIV/0!#DIV/0!#DIV/0!#DIV/0!

66b   Regulatory Asset-9.5%10.60%-#DIV/0!#DIV/0!#DIV/0!-#DIV/0!#DIV/0!-#DIV/0!#DIV/0!-#DIV/0!

66c--0.0%10.60%--#DIV/0!#DIV/0!-

…10.60%#DIV/0!#DIV/0!

…10.60%#DIV/0!#DIV/0!

…10.60%#DIV/0!#DIV/0!

…10.60%#DIV/0!#DIV/0!

…10.60%#DIV/0!#DIV/0!

…10.60%#DIV/0!#DIV/0!

…10.60%#DIV/0!#DIV/0!

…10.60%#DIV/0!#DIV/0!

…10.60%#DIV/0!#DIV/0!

…10.60%#DIV/0!#DIV/0!

…10.60%#DIV/0!#DIV/0!

…10.60%#DIV/0!#DIV/0!

…10.60%#DIV/0!#DIV/0!

10.60%#DIV/0!#DIV/0!

67Total#DIV/0!#DIV/0!#DIV/0!#DIV/0!#DIV/0!#DIV/0!#DIV/0!#DIV/0!

Check Sum Appendix A Line 3#DIV/0!

Difference (must be zero)#DIV/0!

Note:

A Column (b), Net Investment includes the Net Plant In Service, unamortized regulatory assets, unamortized abandoned plant and CWIP
B Column (l), Gross Plant in Service excludes Regulatory Assets, CWIP, and Abandoned Plant.
C Column (e), for each project with an incentive in column (e), note the docket No. in which FERC granted the incentive>

ProjectDocket No.Note

TOTs 1 - Ramapo to Rock TavernER15-572Up to $228 million for the 3 TOTS projects in aggregate

TOTs 2 - Staten Island Unbottling Feeder SplitER15-572Up to $228 million for the 3 TOTS projects in aggregate

TOTs 3 -  NYSEG's Marcy South Series Comp Fraser to Coopers CornerER15-572Up to $228 million for the 3 TOTS projects in aggregate

Application Attachment 1

Attachment 5 - Financing Costs  for Long Term Debt using the Internal Rate of Return Methodology (Note 13)

HURLEY AVENUE PROJECT - SYSTEM DISTRIBUTION UPGRADE

HYPOTHETICAL EXAMPLE

Assumes financing will be a 5 year loan with Origination Fees of $2.1 million and a Commitments Fee of 0.3% on the undrawn principal.

Consistent with GAAP, the Origination Fees and Commitments Fees will be amortized using the standard Internal Rate of Return formula below.

Each year, the amounts withdrawn, the interest paid in the year, Origination Fees, Commitments Fees, and total loan amount will be updated on this attachment.

Table 1

1Total Loan Amount$-

Table 2

2Internal Rate of Return1#NUM!

3Based on following Financial Formula2:

4NPV = 0 =

Table 3

Origination Fees

5Underwriting Discount-

6Arrangement Fee-

7Upfront Fee-

8Rating Agency Fee-

9Legal Fees-

10Total Issuance Expense-

11Annual Rating Agency Fee-

12Annual Bank Agency Fee-

13Revolving Credit Commitment Fee0.000%

Table 4

2014201520162017201820192020

14LIBOR Rate0.64%1.03%1.60%2.13%2.13%2.13%2.13%

15Spread2.25%2.25%2.25%2.25%2.25%2.25%2.25%

16Interest Rate2.89%3.28%3.85%4.38%4.38%4.38%4.38%

Table 5

(A)(B)( C)(D)(E)(F)(G)(H)(I)

Principal

CapitalDrawn In

ExpendituresQuarterPrincipal DrawnInterest & PrincipalOrigination FeesCommitment & Utilization

17Year($000's)($000's)To Date ($000's)($000's)($000's)Fee ($000's)Net Cash Flows ($000's)

1/4 * Interest Rate from

Line 16 x Col. E prior(line 1/1000 less Col. E prior

quarter and Principalquarter)*line 13/4 +line

Cumulative Col. DrepaymentInput in first Qtr of Loan12/4000+line 11/4000(D-F-G-H)

18

193/31/2014Q3----

206/30/2014Q4------

219/30/2014Q1------

2212/31/2014Q2------

233/31/2015Q3------

246/30/2015Q4------

259/30/2015Q1------

2612/31/2015Q2------

273/31/2016Q3------

286/30/2016Q4------

299/30/2016Q1------

3012/31/2016Q2------

313/31/2017Q3------

326/30/2017Q4------

339/30/2017Q1------

3412/31/2017Q2------

353/31/2018Q3-----

36
37
38
39
40
41
42

Notes 1  The IRR is the input to Debt Cost shown on Appendix A, Page 4, Line 95 during the construction period, after obtaining project financing, in accordance with Note G of Appendix A.

2.  The IRR is a discount rate that makes the net present value of a series of cash flows equal to zero.  The IRR equation is shown on line 4.

N is the last quarter the loan would be outstanding

t is each quarter

Ct is the cash flow (Table 5, Col. I in each quarter)

Alternatively the equation can be written as 0 = C0 + C1/(1+IRR) + C2/(1+IRR)2 + C3/(1+IRR)3 + . . . +Cn/(1+IRR)n and solved for IRR

The Excel ™ formula on line 2 is :  (round(XIRR(first quarter of loan Col A of Table 5:last quarter of loan Col A of Table 5, first quarter of loan Col I of Table 5: last quarter of loan Col I of Table 5, 8%),4)) The 8% in the above formula is a seed number to ensure the formula produces a positive number.

3.  Line 1 reflects the loan amount, the maximum amount that can be drawn on

4.  Lines 5 through 13 include the fees associated with the loan.  They are estimated based on current bank condition and are updated with the actual fees once the actual fees are known.

5.  The estimate of the average 3 month Libor forward rate for the year on line 14 is that published by Bloomberg Finance L.P. during August of the prior year and is trued-up to actual
average 3 month Libor rate for the year under the loan.

6.  Table 5, Col. C reflect the capital expenditures in each quarter

7.  Table 5, Col. D reflect the amount of the loan that is drawn down in the quarter