Index

6.10.9.2.1NextEra Energy Transmission New York, Inc. Formula Rate Template

Rate Formula Template

Utilizing FERC Form 1 DataProjected Annual Transmission Revenue Requirement

For the 12 months ended 12/31/____

Appendix AMain body of the Formula Rate

Attachment 1Detail of the Revenue Credits

Attachment 2Monthly Plant and Accumulated Depreciation balances

Attachment 3Cost Support Detail

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

Attachment 5True-Up calculations

Attachment 6a-6eDetail of the Accumulated Deferred Income Tax Balances

Attachment 7Depreciation Rates

Attachment 8Workpapers

Appendix A
Page 1 of 5

Formula Rate - Non-LevelizedRate Formula Template

Utilizing FERC Form 1 DataProjected Annual Transmission Revenue Requirement

For the 12 months ended 12/31/____

NextEra Energy Transmission New York, Inc. Formula Rate Template

(1)(2)(3)

LineAllocated

No.Amount

1GROSS REVENUE REQUIREMENT(page 3, line 75)12 months$-

REVENUE CREDITSTotalAllocator

2Total Revenue CreditsAttachment 1, line 6-TP--

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

4True-up Adjustment(Attachment 5, line 3, col. G)-DA1.00000-

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

Appendix A
Page 2 of 5

Formula Rate - Non-LevelizedRate Formula Template

Utilizing FERC Form 1 Data

For the 12 months ended 12/31/____

NextEra Energy Transmission New York, Inc. Formula Rate Template

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

Transmission

LineSourceCompany 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)-TP--

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

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

10TOTAL GROSS PLANT (sum lines 6-9)(If line 7>0, GP= line 10 column 5 / line 10 column 3.  If line-GP=--

7=0, GP=0)

11ACCUMULATED DEPRECIATION & AMORTIZATION  (Note M)

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

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

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

15General & Intangible(Attach 2, lines 121 + 136-W/S--

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)(If line 19>0, NP= line 22, column 5 / line 22, column 3.  If-NP=--

line 19=0, NP=0)

23ADJUSTMENTS TO RATE BASE(Note A)

24ADIT(Attach 6a proj., line 8, Column E or Attach 6e True-up - line 8, column-TP--

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

26CWIP(Attach 8, line 8, col.u)-DA1.0000-

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

28Unamortized Regulatory Assets(Attach 8, line 2, col. y)(Note L)-DA1.0000-

29Unamortized Abandoned Plant(Attach 8, line 4, col. y) (Note K)-DA1.0000-

30TOTAL ADJUSTMENTS  (sum lines 24-29)--

31LAND HELD FOR FUTURE USE(Attach 8, line 6, column q)-TP--

32WORKING CAPITAL  (Note C)

33CWC(1/8 * (Line 45  less Line 44b)--

34Materials & Supplies  (Note B)(Attach 3, line 189, column C)-TP--

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

36TOTAL WORKING CAPITAL (sum lines 33-35)--

37RATE BASE  (sum lines 22, 30, 31, & 36)--

Appendix A
Page 3 of 5

Formula Rate - Non-LevelizedRate Formula Template

Utilizing FERC Form 1 Data

For the 12 months ended 12/31/____

NextEra Energy Transmission New York, Inc. Formula Rate Template

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

Transmission

SourceCompany TotalAllocator(Col 3 times Col 4)

38O&M

39Transmission321.112.b-TP=--

40Less Account 565321.96.b-TP=--

41A&G323.197.b-W/S--

42Less EPRI & Reg. Comm. Exp. & Other  Ad.(Note D & Attach 3, line 171, column A)-DA1.0000-

43Plus Transmission Related Reg. Comm.  Exp.(Note D & Attach 3, line 172, column C)-TP=--

44PBOP expense adjustment(Attach 3, line 197, col. b)-TP=--

44aLess Account 566321.97.b-DA1.0000-

44bAmortization of Regulatory Assets(Attach 8, line 2, column h)-DA1.0000-

44cAccount 566 excluding amort. of Reg Assets(line 44a less line 44b)-DA1.0000-

45TOTAL O&M   (sum lines 39, 41, 43, 44, 44b, 44c less lines 40 & 42, 44a) (Note D)--

46DEPRECIATION EXPENSE

47Transmission336.7.f (Note M)-TP--

48General and Intangible336.1.f + 336.10.f (Note M)-W/S--

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._.i (enter FN1 line #)-W/S--

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

55PLANT RELATED

56Property263._.i (enter FN1 line #)-GP--

57Gross Receipts263._.i (enter FN1 line #)-NA--

58Other263._.i (enter FN1 line #)-GP--

59TOTAL OTHER TAXES  (sum lines 53-58)--

60INCOME TAXES(Note F)

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

62CIT=(T/1-T) * (1-(WCLTD/R)) =-

63where WCLTD=(line 92) and R= (line 95)

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

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

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

67Permanent Differences Tax Adjustment(Attach 3, line 173a * line 65)-NP--

68Income Tax Calculation = line 62 * line 72--

69ITC adjustment (line 65 * line 66)-NP--

70Total Income Taxes(Sum lines 67 to 69)--

71RETURN

72[ Rate Base (line 37) * Rate of Return (line 95)]-NA-

73Rev Requirement before Incentive Projects  (sum lines 45, 50, 59, 70, 72)--

74Incentive Return and Income Tax and Competitive Bid Concessions for Projects-DA1.0000-

(Attach 4, line 67, cols. h, j &less p)

75Total Revenue Requirement  (sum lines 73 & 74)--

Appendix A
Page 4 of 5

Formula Rate - Non-LevelizedRate Formula Template

Utilizing FERC Form 1 Data

For the 12 months ended 12/31/____

NextEra Energy Transmission New York, Inc. Formula Rate Template
SUPPORTING CALCULATIONS AND NOTES

76TRANSMISSION PLANT INCLUDED IN ISO RATES

77Total transmission plant(line 7, column 3)-

78Less transmission plant excluded from ISO rates(Note H)(Attachment 3, line 175)-

79Less transmission plant included in OATT Ancillary Services(Note H)(Attachment 3, line 175)-

80Transmission plant included in ISO rates  (line 77 less lines 78 & 79)-

81Percentage of transmission plant included in ISO Rates (line 80 divided by line 77) [If line 77 equal zero, enter 1)TP=-

82WAGES & SALARY ALLOCATOR   (W&S) (Note I)

83Form 1 Reference$TPAllocation

84Production354.20.b---

85Transmission354.21.b---

86Distribution354.23.b---W&S Allocator

87Other354.24,25,26.b---($ / Allocation)

88Total(sum lines 84-87) [TP equals 1 if there are no wages & salaries]--=-=WS

89RETURN (R)(Note J)

90

91$%CostWeighted

92Long Term Debt(Attach 3, lines 203 & 224) (Note G)----=WCLTD

93Preferred Stock(Attachment 3, lines 205 & 227)----

94Common Stock(Attachment 3, line 211)--9.65%-

95Total(sum lines 92-94)--=R

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

Non-incentiveIncentive

Investments fromInvestments from

Attachment 4Attachment 4

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

96Net Transmission Plant in Service(Line 19 and Transmission CIACs)---

97CWIP in Rate Base(Line 26)---

98Unamortized Abandoned Plant(Line 29)--

99Project Specific Regulatory Assets(Line 28)--

100Development of Base Carrying charge and Summary of Incentive and Non-Incentive Investments---

101Return and Taxes(Lines 69 & 71)-

102Total Revenue Credits-

103Base Carrying Charge (used in Attach 4, Line 65)(Line 100 - Line 101)/ Line 99-

Appendix A
Page 5 of 5

SUPPORTING CALCULATIONS AND NOTES

Formula Rate - Non-LevelizedRate Formula Template

Utilizing FERC Form 1 Data

For the 12 months ended 12/31/____

NextEra Energy Transmission New York, Inc. Formula Rate Template

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

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

Note

Letter

AThe 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. 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.

BIdentified in Form 1 as being only transmission related.

CCash Working Capital assigned to transmission is one-eighth of O&M allocated to transmission minus the amortization of any Regulatory Asset.

Prepayments are the electric related prepayments booked to Account No. 165 and reported on Pages 110-111 line 57 in the Form 1. D 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 NEET NY will not participate in EEI or EPRI.

Line 43 reflects all Regulatory Commission Expenses directly related to transmission service, ISO filings, or transmission siting itemized at 351.h
Line 39 or Line 41 and thus Line 45 shall include any NYISO charges other than penalties, including but not limited to administrative costs.
E 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.

F 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, must reduce its income tax expense by the amount of the Amortized Investment Tax Credit (266.8.f)

multiplied by (1/1-T).  Excess Deferred Income Taxes reduce income tax expense by the amount of the expense multiplied by (1/1-T).

Inputs Required:FIT =-

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

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

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.

G Prior to obtaining any debt, the cost of debt will be LIBOR plus 1.5%.  Once any debt is obtained, the formula will use the actual cost of debt determined in Attachment 3.    The capital structure will be 60% equity and 40%

debt until NextEra Energy Transmission New York, Inc.’s first transmission project enters service , after which the capital structure will be the actual capital structure.  LIBOR refers to the London Inter Bank Offer Rate from
the Federal Reserve Bank of St. Louis's https://fred.stlouisfed.org/.  The capital structure and cost of debt will be the weighted for the year if the first debt is obtained or first project is placed into service midyear using the
weighting set forth in Note G.

HRemoves dollar amount of transmission plant included in the development of OATT ancillary services rates and generation

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.

IEnter dollar amounts

JROE 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.

KRecovery of Regulatory Assets is permitted only for pre-commercial expenses incurred prior to the date when NEET New York may first recover costs under the NYISO Tariff, as authorized by the Commission.  Recovery of any other

regulatory assets (e.g., project specific) requires authorization from the Commission. A carrying charge equal to the weighted cost of capital calculated pursuant to this formula will be applied to the Regulatory Asset prior to the rate year

when costs are first recovered.

LUnamortized Regulatory Assets, consisting of all expenses incurred but not included in CWIP prior to the date the rate is charged to customers, is included at line 28

Carrying costs equal to the weighted cost of capital on the balance of the regulatory asset will accrue until the rate is charged to customers

MBalances exclude Asset Retirement Costs

NNon-incentive investments are investments without ROE incentives and incentive investments are investments with ROE incentives

O Unfunded Reserves are customer contributed capital such as when employee vacation expense is accrued but not yet incurred.  Also, pursuant to Special Instructions to Accounts 228.1 through 228.4,

no amounts shall be credited to accounts 228.1 through 228.4 unless authorized by a regulatory authority or authorities to be collected in a utility’s rates.

Attachment 1 - Revenue Credit Workpaper*

NextEra Energy Transmission New York, Inc. Formula Rate Template

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, 456, and 456.1 Revenues must be itemized below and tie to FERC Form No. 1 cites set forth below.

Line No.

1Accounts 456 and 456.1 (300.21.b plus 300.22.b)TOTALNY-ISOOther 1Other 2

1a----

…----

1x----

2----

3Total----

4Less:

5Revenue for Demands in Divisor----

6Sub Total Revenue Credit----

7Prior Period Adjustments----

8Total(must tie to 300.21.b plus 300.22.b)----

9Account 454 (300.19.b)$

9a-

9b-

9c-

9d-

9e-

9f-

9g-

…

9x-

10Total(must tie to 300.19.b)-

Attachment 2 - Cost Support

NextEra Energy Transmission New York, Inc. Formula Rate Template

Plant in Service Worksheet

1Calculation of Transmission  Plant In ServiceSource (Less ARO, see Note M)YearBalance

2Decemberp206.58.b--

3Januarycompany records--

4Februarycompany records--

5Marchcompany records--

6Aprilcompany records--

7Maycompany records--

8Junecompany records--

9Julycompany records--

10Augustcompany records--

11Septembercompany records--

12Octobercompany records--

13Novembercompany records--

14Decemberp207.58.g--

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

16Calculation of Distribution Plant In ServiceSource (Less ARO, see Note M)

17Decemberp206.75.b--

18Januarycompany records--

19Februarycompany records--

20Marchcompany records--

21Aprilcompany records--

22Maycompany records--

23Junecompany records--

24Julycompany records--

25Augustcompany records--

26Septembercompany records--

27Octobercompany records--

28Novembercompany records--

29Decemberp207.75.g--

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

31Calculation of Intangible Plant In ServiceSource (Less ARO, see Note M)

32Decemberp204.5.b--

33Januarycompany records--

34Februarycompany records--

35Marchcompany records--

36Aprilcompany records--

37Maycompany records--

38Junecompany records--

39Julycompany records--

40Augustcompany records--

41Septembercompany records--

42Octobercompany records--

43Novembercompany records--

44Decemberp205.5.g--

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

46Calculation of General Plant In ServiceSource (Less ARO, see Note M)

47Decemberp206.99.b--

48Januarycompany records--

49Februarycompany records--

50Marchcompany records--

51Aprilcompany records--

52Maycompany records--

53Junecompany records--

54Julycompany records--

55Augustcompany records--

56Septembercompany records--

57Octobercompany records--

58Novembercompany records--

59Decemberp207.99.g--

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

61Calculation of Production Plant In ServiceSource (Less ARO, see Note M)

62Decemberp204.46b--

63Januarycompany records--

64Februarycompany records--

65Marchcompany records--

66Aprilcompany records--

67Maycompany records--

68Junecompany records--

69Julycompany records--

70Augustcompany records--

71Septembercompany records--

72Octobercompany records--

73Novembercompany records--

74Decemberp205.46.g--

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 DepreciationSource (Less ARO, see Note M)YearBalance

78DecemberPrior year p219.25.c--

79Januarycompany records--

80Februarycompany records--

81Marchcompany records--

82Aprilcompany records--

83Maycompany records--

84Junecompany records--

85Julycompany records--

86Augustcompany records--

87Septembercompany records--

88Octobercompany records--

89Novembercompany records--

90Decemberp219.25.c--

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

92Calculation of Distribution Accumulated DepreciationSource (Less ARO, see Note M)

93DecemberPrior year p219.26.c--

94Januarycompany records--

95Februarycompany records--

96Marchcompany records--

97Aprilcompany records--

98Maycompany records--

99Junecompany records--

100Julycompany records--

101Augustcompany records--

102Septembercompany records--

103Octobercompany records--

104Novembercompany records--

105Decemberp219.26.c--

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

107Calculation of Intangible Accumulated AmortizationSource (Less ARO, see Note M)

108DecemberPrior year p200.21.c--

109Januarycompany records--

110Februarycompany records--

111Marchcompany records--

112Aprilcompany records--

113Maycompany records--

114Junecompany records--

115Julycompany records--

116Augustcompany records--

117Septembercompany records--

118Octobercompany records--

119Novembercompany records--

120Decemberp200.21.c--

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

122Calculation of General Accumulated DepreciationSource (Less ARO, see Note M)

123DecemberPrior year p219.28.c--

124Januarycompany records--

125Februarycompany records--

126Marchcompany records--

127Aprilcompany records--

128Maycompany records--

129Junecompany records--

130Julycompany records--

131Augustcompany records--

132Septembercompany records--

133Octobercompany records--

134Novembercompany records--

135Decemberp219.28.c--

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

137Calculation of Production Accumulated DepreciationSource (Less ARO, see Note M)

138Decemberp219.20.c to 24.c (prior year)--

139Januarycompany records--

140Februarycompany records--

141Marchcompany records--

142Aprilcompany records--

143Maycompany records--

144Junecompany records--

145Julycompany records--

146Augustcompany records--

147Septembercompany records--

148Octobercompany records--

149Novembercompany records--

150Decemberp219.20.c to 24.c--

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

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

Attachment 3 - Cost Support

NextEra Energy Transmission New York, Inc. Formula Rate Template

Details

Numbering continues from Attachment 2Beginning of YearEnd of YearAverage Balance

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

154Unamortized Abandoned PlantAttachment 8, line 4, col. (v)-

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

155Amortization of Abandoned PlantAttachment 8, line 4, col. (h)-

156Prepayments (Account 165)AB

(Prepayments exclude Prepaid Pension Assets)YearBalance

157December111.57.d--

158Januarycompany records--

159Februarycompany records--

160Marchcompany records--

161Aprilcompany records--

162Maycompany records--

163Junecompany records--

164Julycompany records--

165Augustcompany records--

166Septembercompany records--

167Octobercompany records--

168Novembercompany records--

169December111.57.c--

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

Reserves

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

Enter 1 if NOT in aEnter 1 if the accrual accountEnter the percentage paid

trust or reservedis included in the formulafor by customers, 1 less

account, enter zero (0)rate, enter (0) if  O if thethe percent associatedAmount Allocated,

if included in a trustaccrual account is NOTwith an offsetting liabilityAllocation (Plant orcol. c x col. d x col. e

Amountor reserved accountincluded in the formula rateon the balance sheetLabor Allocator)x col. f x col. g

Reserve 1------

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.

EPRI Dues Cost Support

EPRI & EEI Costs to be ExcludedDetails

Allocated General & Common Expenses

EPRI Dues(A)

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(A)(B)C (Col A-Col B)

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

* insert case specific detail and associated assignments here

Multi-state Workpaper

New YorkState 2State 3State 4State 5Weighed Average

Income Tax Rates

Weighting1

173SIT=State Income Tax Rate or Composite0.07100.07

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)

173a The Tax Effect of Permanent Differences captures the differences in the income taxes due under the Federal and State calculations and the income taxes calculated in Appendix A that are not the result of a timing difference. If any, a workpaper showing the calculation will be attached.

Safety Related and Education and Out Reach Cost Support

Safety Related,

Education, Siting &

Form 1 AmountOutreach RelatedOtherDetails

Directly Assigned A&G(A)(B)C (Col A-Col B)

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 Facilities--General Description of the Facilities

A worksheet will be provided if there are ever any excluded transmission plant or transmission plant in OATT Ancillary Services

Add more lines if necessary

Materials & Supplies

Stores ExpenseTransmission Materials &

UndistributedSuppliesTotal

Note:  for the projection, the prior year's actual balances will be usedp227.16p227.8

Form No.1 page(A)(B)C (Col A+Col B)

176DecemberColumn b---

177JanuaryCompany Records---

178FebruaryCompany Records---

179MarchCompany Records---

180AprilCompany Records---

181MayCompany Records---

182JuneCompany Records---

183JulyCompany Records---

184AugustCompany Records---

185SeptemberCompany Records---

186OctoberCompany Records---

187NovemberCompany Records---

188DecemberColumn c---

189Averagesum line 176 to 188 divided by 13-

PBOPs

Details

Calculation of PBOP Expenses

(a)(b)

190Total

191Total PBOP expenses (Note A)$0.00

192Labor dollars (total labor under PBOP Plan, Note A)$0.00

193Cost per labor dollar (line 191 / line 192)-

194labor expensed (labor not capitalized) in current year, 354.28.b.-

195PBOP Expense for current year(line 193 * line 194)-

196PBOP amount included in Company's O&M and A&G expenses included in FERC Account Nos. 500-935

197PBOP Adjustment (line 195 - line 196)-

A  Lines 191-192 cannot change absent approval or acceptance by FERC in a separate proceeding.

B  The source of the amounts from the Actuary Study supporting the numbers in Line 2 and 3 is -

Attachment 3 - Cost Support

COST OF CAPITALNextEra Energy Transmission New York, Inc. Formula Rate Template

Form No.1

Line No.DescriptionReferenceDecemberJanuaryFebruaryMarchAprilMayJuneJulyAugustSeptemberOctoberNovemberDecember13 Month Avg.

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

198Long Term Debt (3):

199Acct 221 Bonds112.18.c,d--------------

200Acct 223 Advances from Assoc. Companies112.20.c,d--------------

201Acct 224 Other Long Term Debt112.21.c,d--------------

202Less  Acct 222 Reacquired Debt112.19 c, d enter negative--------------

203Total Long Term DebtSum Lines 199 - 202--------------

204

205Preferred Stock (1)112.3.c,d--------------

206

207Common Equity- Per Books112.16.c,d--------------

208Less Acct 204 Preferred Stock112.3.c,d--------------

209Less Acct 219 Accum Other Compre. Income112.15.c,d--------------

Less Acct 216.1 Unappropriated Undistributed

210Subsidiary Earnings112.12.c,d--------------

211Adjusted Common EquityLn 207 - 208 - 209 - 210--------------

212

213Total (Line 203 plus Line 205 plus Line 211)--------------

214

215Cost of Debt (3)

216Acct 427 Interest on Long Term Debt117.62.c-

217Acct 428 Amortization of Debt Discount and Expense117.63.c-

218Acct 428.1 Amortization of Loss on Reacquired Debt117.64.c-

Acct 430 Interest on Debt to Assoc. Companies (LTD

219portion only) (2)117.67.c-

220Less:  Acct 429 Amort of Premium on Debt117.65.c enter negative-

221Less:  Acct 429.1 Amort of Gain on Reacquired117.66.c enter negative-

222Total Interest ExpenseSum Lines 216 - 221-

223

224Average Cost of Debt (Line 222, col. n / Line 203, col. n)-

225

226Cost of Preferred Stock

227Preferred Stock Dividends118.29.c

228

229Average Cost of Preferred Stock (Line 227, col. n / Line 205, col. n)-

Note 1.  If and when the Company issues preferred stock, footnote will indicate the authorizing regulatory agency, the docket/case number, and the date of the Note 2.  Interest on Debt to Associated Companies (FERC 430) will be populated with interest related to Long-Term Debt only.

Note 3. In the event there is a construction loan prior to the issuance of non-construction debt, line 222 will include the interest and line 203 will include the outstanding amounts associated with the construction financing.

Rate Formula Template
Project Worksheet

Attachment 4For  the 12 months ended 12/31/___

Utilizing 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 valuate 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.

NextEra Energy Transmission New York, Inc. Formula Rate Template

Base ROE and Income Taxes Carrying Charge

AllocatorResult

1Rate Base-

2BASE RETURN CALCULATION:

$%CostWeighted

3Long Term Debt(Appendix A, Line 91)----

4Preferred Stock(Appendix A, Line 92)----

5Common Stock(Appendix A, Line 93)--9.65%-

6Total(sum lines 3-5)--

7Return multiplied by Rate Base (line 1 * line 6)-

8INCOME TAXES

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

10CIT=(T/1-T) * (1-(WCLTD/R)) =-

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)-

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

15Income Tax Calculation = line 10 * line 7 * (1-n)--

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

17Total Income Taxes(line 15 plus line 16)--

18Base Return and Income TaxesSum lines 7 and 17-

19Rate BaseLine 1-

20Return and Income Taxes at Base ROELine 18 / line 19-

100 Basis Point Incentive ROE and Income Taxes Carrying ChargeAttachment 4

Result

21Rate Base-

22100 Basis Point Incentive Return impact on

$%CostWeighted

23Long Term Debt(line 3)----

24Preferred Stock(line 4)----

25Common Stock(line 5 plus 100 basis points)--10.65%-

26Total(sum lines 24-26)--

27100 Basis Point Incentive Return multiplied by Rate Base (line 21 * line 26)-

28INCOME TAXES

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

30CIT=(T/1-T) * (1-(WCLTD/R)) =-

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)-

34Amortized Investment Tax Credit (line 14)-

35Income Tax Calculation = line 30 * line 27 * (1-n)--

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

37Total Income Taxes(line 35 plus line 36)--

38Return and Income Taxes with 100 basis point increase in ROESum lines 27 and 37-

39Rate BaseLine 21-

40Return and Income Taxes with 100 basis point increase in  ROELine 38 / line 39-

41Difference in Return and Income Taxes between Base ROE and 100 Basis Point IncentiveLine 41- Line 20-

Effect of 1% Increase in the Equity Ratio

Results

42Rate Base-

43100 Basis Point Incentive Return

$%CostWeighted

44Long Term Debt(line 3 minus 1% in equity ratio)----

45Preferred Stock(line 4)----

46Common Stock(line 5 plus 1% in equity ratio))--9.65%-

47Total(sum lines 44-46)--

48Line 47 x line 42-

49INCOME TAXES

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

51CIT=(T/1-T) * (1-(WCLTD/R)) =-

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)-

55Amortized Investment Tax Credit (line 14)-

56Income Tax Calculation = line 51 * line 48 * (1-n)--

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

58Total Income Taxes(line 56 plus line 57)--

59Return and Income Taxes with 1% Increase in the Equity RatioSum lines 48 and 58-

60Rate BaseLine 42-

61Return and Income Taxes with 1% Increase in the Equity RatioLine 59 / line 60-

62Difference between Base ROE and 1% Increase in the Equity RatioLine 61 - Line 20-

Attachment 4

63Revenue Requirement per project including incentives

64Expense Allocator[Appendix A, lines 45 and 59, less Appendix A, line 44b (project specific) / Gross Transmission Plant In Service Column (l).  If Gross Transmission Plant is zero, then the Expense Allocator should be zero] (Note B)-

65Base Carrying ChargeLine 103 Appendix A-

The table below breaks out the total revenue requirement on Appendix A separately for each investment.  The total of Column (q) 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)(q)

O&M, Taxes

ROEROE BaseEquity % in CapitalImpact of EquityOther than

Authorized by(FromIncentive %Structure (% aboveComponent of CapitalExpenseIncomeCompetitive BidTotal Revenues

Net InvestmentFERC (NoteAppendix A,Authorized byCol (e) / .01 xIncentive $ (Colbase %, -% below baseStructure(Col (b) x (i)Base Return and Tax (Line 65Gross Plant InAllocator(line(Col. (l) x Col.Depreciation/AmorConcession(Col. (h) + (j) + (k)

LineDescription(Note A)D)line 94)FERCLine 41Col (f)(b) x Col (g)%)(1 equals 1%)x Line 62x Col (b)Service (Note B)64)(n)tization Expense(Note C)+(n) +(o) -(p))

66---------

66a---------

66b---------

66c----------

…--------

…--------

…--------

…--------

…--------

…--------

…--------

…--------

…--------

…--------

…--------

…--------

…--------

-------

67Total$0.00---$0----

68Check Sum Appendix A Line 3-

69Difference (must be equal to zero)-

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 Competitive Bid Concession, if any, will reflect outcome of competitive developer selection process and will be computed on a workpaper that will be provided as supporting documentation

for each Annual Update and will be zero or a reduction to the revenue requirement.  The amount in Column (p) above equals the amount by which the annual revenue requirement is reduced from the ceiling rate. D Column (e), for each project with an incentive in column (e), note the docket No. in which FERC granted the incentive>

ProjectDocket No.Note

Empire State Line Project - 100 BP ROE Adder and Cost CapDocket Nos. ER16-2719, ER18-125Pursuant to the settlement agreement approved in Docket No. ER16-2719, a 100 bp ROE adder will apply to project investment

incurred up to the Cost Cap.  A 100 bp ROE adder shall also apply to Unforeseeable Costs in excess of five (5) percent of the Cost
Cap, Empire Third Party Costs, and Project Development Costs.  Empire Third Party Costs are costs that result from: (i) NYISO
modifications or further NYISO requirements, including interconnection costs and upgrades resulting from the NYISO
interconnection study process; or (ii) real estate-related costs incurred in any lease arrangements or purchases related to the
acquisition of rights-of-way or access to rights-of-way or purchases of rights to access utility facilities; (iii) all sales and property
taxes; or (iv) Empire Lower Voltage Upgrades. These Empire Third Party Costs are not included in the Capital Cost Bid, are not
subject to the Cost Cap or Cost Containment Mechanism, and are recoverable in the formula rate.  Project Development Costs are
costs incurred for the Empire State Line Project prior to the selection of one or more transmission developer(s) by the NYISO
Board of Directors and are not included in the Capital Cost Bid submitted to the NYISO, and are not subject to the Cost Cap or
Cost Containment Mechanism, are to be included in Construction Work in Progress (“CWIP”) in accordance with the FERC
Uniform System of Accounts, and are recoverable in the formula rate.  The Cost Cap is the sum of the following:  (A) the Capital
Cost Bid, defined as the amount submitted by NEET NY in response to the NYISO's solicitation on the Western New York Public
Policy Transmission Need, but excluding Empire Third Party Costs; (B) contingency of 18% will be applied to the Capital Cost
Bid; (C) the sum of the Capital Cost Bid and the contingency of 18%, multiplied by an inflation factor of 2.0% per year for the
period of time from the submission in response to the NYISO’s Solicitation to the date that is one year prior to the Commercial
Operation Date; and (D) Allowance for Funds Used During Construction.

Empire State Line Project - Cost Containment MechanismDocket Nos. ER16-2719, ER18-125Pursuant to the settlement agreement approved in Docket No. ER16-2719, 20% of any prudently incurred project costs above

the Cost Cap that are subject to the Cost Containment Mechanism will not earn an equity return, but NEET NY will be allowed to recover the associated depreciation and debt cost.  In addition, 80% of any prudently incurred costs above the Cost Cap that are subject to the Cost Containment Mechanism will not earn any ROE Incentive Adders on the equity portion of such costs, but NEET NY will be allowed to earn the Base ROE, associated depreciation, and debt cost.

Empire State Line Project - Unforeseeable CostsDocket Nos. ER16-2719, ER18-125Unforeseeable Costs in an aggregate amount up to 5% of the Cost Cap shall be considered project costs that are part of the

contingency and subject to the Cost Containment Mechanism. Unforeseeable Costs that are more than 5% of the amount of the Cost Cap are not subject to the Cost Cap or Cost Containment Mechanism and are recoverable in the formula rate. NEET NY will provide updates of Unforeseeable Costs as part of project cost updates in its annual June informational filing, including
information demonstrating how such costs were determined to be Unforeseeable Costs.

Empire State Line Project - Additional ROE Adder for Certain Costs Below the Cost CapDocket Nos. ER16-2719, ER18-125Pursuant to the settlement agreement approved in Docket No. ER16-2719, NEET NY may utilize an additional ROE adder when

the actual project costs are below the “Adjusted Cost Cap.”The Adjusted Cost Cap shall be comprised of the sum of the following:

(a) the Capital Cost Bids for the Empire State Line Project and the AC Transmission Project, respectively; (b) the Capital Cost Bid multiplied by 5% (“5% Adder”); (c) the sum of the Capital Cost Bid and the 5% Adder, multiplied by an inflation factor of 2.0% per year for the period of time from when the Capital Cost Bid was established and until one year prior to the date when the Empire State Line Project starts commercial operations; and (d) any AFUDC.  NEET NY will receive an additional ROE adder as set forth in Table A below when the Eligible Project costs, inclusive of Unforeseeable Costs in an amount up to 5% of the
Adjusted Cost Cap, are less than the Adjusted Cost Cap, as set forth in Table A below.

Table ADocket Nos. ER16-2719, ER18-125Table A

Actual Costs Below AdjustedROE Adder

Cost Cap

0% to <=5%0.05%

>5% to <=10%0.17%

>10% to <=15%0.30%

>15% to <=20%0.45%

>20% to <=25%0.62%

>25%0.71%

Attachment 5 - Example of True-Up Calculation

NextEra Energy Transmission New York, Inc. Formula Rate Template

YearAnnual True-Up Calculation

1

ABCDEFG

Net

AdjustedUnder/(Over)InterestTotal True-Up

ProjectNet RevenueCollectionIncomeAdjustment

IdentificationProject NameRequirement1Revenue Received2(C-D)(Expense)(E + F)

2-----

2a-----

2b-----

2c-----

2d-----

-----

3Total-----

Note A

1) From Attachment 4, Column (q) for the period being trued-up

2) The "revenue received" is the total amount of revenue distributed in the True-Up Year. The amounts do not include any true-ups or prior period
adjustments and reflects any Competitive Bid Concessions

3. Then Monthly Interest Rate shall be equal to the interest rate set forth below on line 13 and be applied to the amount in Column E for a period of 24 months

4. The True-Up Adjustment is applied to each project prorata based its contribution to the Revenue Requirement shown in Attachment 4

FERC Refund Interest Rate

(a)(b)(c)(d)

Quarterly Interest Rate

4Interest Rate:QuarterYearunder Section 35.19(a)

51st Qtr.--

62nd Qtr--

73rd Qtr--

84th Qtr--

91st Qtr--

102nd Qtr--

113rd Qtr--

12Sum lines 5-11-

13Avg. Monthly FERC RateLine 12 divided by 7-

Attachment 6a - Accumulated Deferred Income Taxes (ADIT) Average Worksheet (Projection)

NextEra Energy Transmission New York, Inc. Formula Rate Template

Projection for the 12 Months Ended 12/31/____

ABCDE

(Sum Col. B, C & D)

LnItemTransmission RelatedPlant RelatedLabor RelatedTotal

1 ADIT-282 (enter negative)---Line 11

2 ADIT-283 (enter negative)---Line 16

3 ADIT-190---Line 21

4 Subtotal---Sum of Lines 1-3

5 Wages & Salary Allocator (sum lines 1-3 for each column)-Appendix A, line 88

6 Net Plant Allocator-Appendix A, line 22

7 Total Plant Allocator1.00100%

8 Projected ADIT Total----Enter as negative Appendix A, page 2, line 24

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

Beginning Balance & Monthly ChangesMonthYearBalanceTransmissionPlant RelatedLabor Related

Related

ADIT-282

9 Balance-BOY (Attach 6c, Line 30)December-----

10 Balance-EOY Prorated (Attach 6b, Line 14)December-----

11 ADIT 282-Average Total----

ADIT-283

12 Balance-BOY (Attach 6c, Line 44)December-----

13 EOY (Attach 6d, Line 44 less Line 40)December-----

14 EOY Prorated (Attach 6b, Line 28)December-----

15 Balance-EOY (Lines 13+14)December-----

16 ADIT 283-Average Total----

ADIT-190

17 Balance-BOY (Attach 6c, Line 18)December-----

18 EOY (Attach 6d, Line 18 less Line 14)December-----

19 EOY Prorated (Attach 6b, Line 42)December-----

20 Balance-EOY (Lines 18+19)December-----

21 ADIT 190-Average Total----

Attachment 6b - Accumulated Deferred Income Taxes (ADIT) Proration Worksheet (Projection)

NextEra Energy Transmission New York, Inc. Formula Rate Template

Projection for the 12 Months Ended 12/31/____

(a)(b)(c)(d)(e)(f)(g)(h)(i)(j)(k)

Beginning Balance & Monthly ChangesMonthYearWeighting forBeginning Balance/TransmissionTransmissionPlant RelatedPlant ProrationLaborLabor Proration

ProjectionMonthly IncrementProration(d) x (h)Related(d) x (j)

(d) x (f)

ADIT-282-Proration-Note A

1 Balance (Attach 6c, Line 30)December0100.00%-------

2 IncrementJanuary091.78%-------

3 IncrementFebruary084.11%-------

4 IncrementMarch075.62%-------

5 IncrementApril067.40%-------

6 IncrementMay058.90%-------

7 IncrementJune050.68%-------

8 IncrementJuly042.19%-------

9 IncrementAugust033.70%-------

10 IncrementSeptember025.48%-------