NYISO Tariffs --> Open Access Transmission Tariff (OATT) --> 14 OATT Attachment H - Annual Transmission Revenue Requireme --> 14.2-14.2.1 OATT Att H Attachment 1 to Attachment H
14.2Attachment 1 to Attachment H (Niagara Mohawk Power Corporation) and
NYPA Transmission Adjustment Charge
14.2.1Attachment 1 to Attachment H: Schedules (Niagara Mohawk Power
Corporation)
Table of Contents
Effective Date: 4/1/2023 - Docket #: ER23-973-002 - Page 1
NYISO Tariffs --> Open Access Transmission Tariff (OATT) --> 14 OATT Attachment H - Annual Transmission Revenue Requireme --> 14.2-14.2.1 OATT Att H Attachment 1 to Attachment H
Historical Transmission Revenue Requirement Forecasted Transmission Revenue Requirement Annual True-up with Interest Calculation
Year to Year Comparison
Allocators
Transmission Investment Base (Part 1 of 2) Transmission Investment Base (Part 1 of 2) Transmission Investment Base (Part 2 of 2) Capital Structure
Expenses Other
System Dispatch Expense - Component CCC Billing Units - Component BU
Forecasted Accumulated Deferred Income Taxes (FADIT) Actual Accumulated Deferred Income Taxes (AADIT)
(Excess)/Deficient ADIT Worksheet
(Excess)/Deficient ADIT Remeasurement Support Project Specific Revenue Requirement
Project Return
Project Specific (Excess)/Deficient ADIT Worksheet
Schedule 1
Schedule 2
Schedule 3
Schedule 4
Schedule 5
Schedule 6 Page 1 of 2
Schedule 6 Page 2 of 2
Schedule 7
Schedule 8
Schedule 9
Schedule 10
Schedule 11
Schedule 12
Schedule 13
Schedule 13a
Schedule 14
Schedule 14a
Schedule 15a
Schedule 15b
Schedule 15c
Effective Date: 4/1/2023 - Docket #: ER23-973-002 - Page 1
NYISO Tariffs --> Open Access Transmission Tariff (OATT) --> 14 OATT Attachment H - Annual Transmission Revenue Requireme --> 14.2-14.2.1 OATT Att H Attachment 1 to Attachment H
Project Specific (Excess)/Deficient ADIT Remeasurement WorksheetSchedule 15d
Effective Date: 4/1/2023 - Docket #: ER23-973-002 - Page 1
NYISO Tariffs --> Open Access Transmission Tariff (OATT) --> 14 OATT Attachment H - Annual Transmission Revenue Requireme --> 14.2-14.2.1 OATT Att H Attachment 1 to Attachment H
Smart Path Connect Cost Containment AdjustmentSchedule 15e
Effective Date: 4/1/2023 - Docket #: ER23-973-002 - Page 1
NYISO Tariffs --> Open Access Transmission Tariff (OATT) --> 14 OATT Attachment H - Annual Transmission Revenue Requireme --> 14.2-14.2.1 OATT Att H Attachment 1 to Attachment H
Niagara Mohawk Power CorporationAttachment 1
Calculation of RR Pursuant to Attachment H, Section 14.1.9.2YearSchedule 1
Calculation of RR
14.1.9.2The RR component shall equal the (a) Historical Transmission Revenue Requirement plus (b) the Forecasted Transmission Revenue Requirement plus (c) the Annual
True-Up, determined in accordance with the formula below.
Historical Transmission Revenue Requirement (Historical TRR)
Line No.
1Historical Transmission Revenue Requirement (Historical TRR)
2
314.1.9.2 (a)Historical TRR shall equal the sum of NMPC’s (A) Return and Associated Income Taxes, (B) Transmission Related Depreciation Expense, (C) Transmission Related
4Real Estate Tax Expense, (D) Transmission Related Amortization of Investment Tax Credits, (E) Transmission Operation and Maintenance Expense,
5(F) Transmission Related Administrative and General Expenses, (G) Transmission Related Payroll Tax Expense, (H) Amortization of Transmission Regulatory Assets
6and Liabilities, (I) Billing Adjustments, and (J) Transmission Related Bad Debt Expense less (K) Revenue Credits, (L) Transmission Rents,
7and (M) Project Specific Revenue Requirement Credits, all determined for the most recently ended calendar year as of the beginning of the update year.
8Reference
9Section:0
10Return and Associated Income Taxes(A)#DIV/0!Schedule 8, Line 64
11Transmission-Related Depreciation Expense(B)#DIV/0!Schedule 9, Line 6, column 5
12Transmission-Related Real Estate Taxes(C)#DIV/0!Schedule 9, Line 12, column 5
13Transmission - Related Investment Tax Credit(D)#DIV/0!Schedule 9, Line 16, column 5 times minus 1
14Transmission Operation & Maintenance Expense(E)$0Schedule 9, Line 23, column 5
15Transmission Related Administrative & General Expense(F)#DIV/0!Schedule 9, Line 38, column 5
16Transmission Related Payroll Tax Expense(G)$0Schedule 9, Line 44, column 5
17Amortization of Transmission Regulatory Assets and Liabilities(H)#DIV/0!Schedule 9, Line 46, column 5
18Sub-Total (sum of Lines 10 - Line 17)#DIV/0!
19
20Billing Adjustments(I)$0Schedule 10, Line 1
21Bad Debt Expenses(J)$0Schedule 10, Line 4
22Revenue Credits(K)$0Schedule 10, Line 7
23Transmission Rents(L)$0Schedule 10, Line 15
24Project Specific Revenue Requirement Credits(M)#DIV/0!Schedule 10, Line 18
25
Total Historical Transmission Revenue Requirement (Sum of Line 18 through Line
2624)#DIV/0!
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NYISO Tariffs --> Open Access Transmission Tariff (OATT) --> 14 OATT Attachment H - Annual Transmission Revenue Requireme --> 14.2-14.2.1 OATT Att H Attachment 1 to Attachment H
Niagara Mohawk Power CorporationAttachment 1
Forecasted Transmission Revenue RequirementSchedule 2
Attachment H, Section 14.1.9.2
Year
Shading denotes an input
Line No.
114.1.9.2 (b)FORECASTED TRANSMISSION REVENUE REQUIREMENTS
2Forecasted TRR shall equal (1) the Forecasted Transmission Plant Additions (FTPA) multiplied by the Adjusted Annual (AFTRRF), plus (2) Forecasted ADIT Adjustment (FADITA), plus (3) the Mid-Year
Trend
3Adjustment (MYTA), less (4) Transmission Support Payments (TSP), plus (5) the Tax Rate Adjustment (TRA), less (6) Other Billing Adjustments (OBA) as shown in the following formula:
4
5Forecasted TRR = (FTPA * AFTRRF) + FADITA + MYTA - TSP + TRA - OBA
6
7PeriodReferenceSource
8
9
10(1)FORECASTED TRANSMISSION PLANT ADDITIONS (FTPA)$0Workpaper 8, Section I, Line 16
11Adjusted Annual Transmission Revenue Requirement Factor#DIV/0!Line 76
(AFTRRF)
12Sub-Total (Lines 10*11)#DIV/0!
13
14(2)FORECASTED ADIT ADJUSTMENT (FADITA)
15The Forecasted ADIT Adjustment (FADITA) shall equal the
Forecasted ADIT (FADIT)
16multiplied by the Cost of Capital Rate, where:
17
18Forecasted ADIT(FADIT) shall equal the projected change in
Accumulated Deferred Income Taxes from the most recently
19concluded calendar year related to accelerated depreciation and
associated with Transmission Plant for the
20Forecasted Period calculated in accordance with Treasury regulation
Section 1.167(1)-1(h)(6).
21
22Forecasted ADIT (FADIT)#DIV/0!Schedule 13, Line 24
23Cost of Capital Rate#DIV/0!Schedule 8, Line 62
24Forecasted ADIT Adjustment (FADITA)#DIV/0!Line 22 * Line 23
25
26(3)MID YEAR TREND ADJUSTMENT (MYTA)
27The Mid-Year Trend Adjustment shall be the difference, whether
positive or negative, between
28(i) the Historical TRR Component (E) excluding Transmission Support
Payments, based on actual data for the first three months of the Forecast Period,
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NYISO Tariffs --> Open Access Transmission Tariff (OATT) --> 14 OATT Attachment H - Annual Transmission Revenue Requireme --> 14.2-14.2.1 OATT Att H Attachment 1 to Attachment H
29and (ii) the Historical TRR Component (E) excluding Transmission
Support Payments, based on data for the first three months of the
year prior to the Forecast Period.
30
31Plus Mid-Year Trend Adjustment (MYTA)$0Workpaper 9, line 32, variance
column
32
33(4)TRANSMISSION SUPPORT PAYMENTS (TSP)
34Less Impact of Transmission Support Payments on Historical$0Workpaper 9A
Transmission Revenue Requirement
35Less: Other Billing Adjustments - Dunkirk Settlement ER14-543-000$0Schedule 10
36
37(5)TAX RATE ADJUSTMENT (TRA)
38The Tax Rate Adjustment shall be the amount, if any, required to
adjust Historical TRR Component (A) for any change in the Federal
Income Tax Rate
39and/or the State Income Tax Rate that takes effect during the first
five months of the Forecast Period.
40
41Tax Rate Adjustment (TRA)$0
42
43(6)OTHER BILLING ADJUSTMENTS (OBA)
44Other Billing Adjustments shall equal any amounts related to the
HTRR calculation that are
45required to be adjusted in the current year's FTRR to remove the
impact on the Update Year
46
47Other Billing Adjustments (OBA)$0Schedule 10, Line 1
48
49Forecasted Transmission Revenue Requirement (Line 12 + Line 24#DIV/0!
+ Line 31 - Line 34 - Line 35 + Line 41-Line 47)
50
5114.1.9.2(c)ANNUAL FORECAST TRANSMISSION REVENUE REQUIREMENT FACTOR
52
53Adjusted Annual Forecast Transmission Revenue Requirement Factor (AFTRRF) shall equal the difference between the Annual Forecast
54Transmission Revenue Requirement Factor (FTRRF) and the quotient of (1) Cost of Capital Rate multiplied by the Transmission Related
55Accumulated Deferred Taxes less Accumulated Deferred Inv. Tax Cr (255) for the most recently concluded calendar year,
56and (ii) the year-end Transmission Plant in Service determined in accordance with Section 14.1.9.2 (a), component (A)1(a).
57
58The Annual Forecast Transmission Revenue Requirement Factor (Annual FTRRF) shall equal the sum of Historical TRR components (A) through (C),
59divided by the year-end balance of Transmission Plant in Service determined in accordance with Section 14.1.9.2 (a), component (A)1(a).
60
61Derivation of Annual Forecast Transmission Revenue Requirement
Factor (FTRRF)
62Investment Return and Income Taxes(A)#DIV/0!Schedule 1, Line 10
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NYISO Tariffs --> Open Access Transmission Tariff (OATT) --> 14 OATT Attachment H - Annual Transmission Revenue Requireme --> 14.2-14.2.1 OATT Att H Attachment 1 to Attachment H
63Depreciation Expense(B)#DIV/0!Schedule 1, Line 11
64Property Tax Expense(C)#DIV/0!Schedule 1, Line 12
65Total Expenses (Lines 62 thru 64)#DIV/0!
66Transmission Plant(a)#DIV/0!Schedule 6, Page 1, Line 12
67Annual Forecast Transmission Revenue Requirement Factor#DIV/0!
(Lines 65/ Line 66)
68
69Adjustment to FTRRF to reflect removal of ADIT that is subject to
normalization
70Transmission Related ADIT Balance at year-end#DIV/0!Schedule 7, Line 2
!
71Cost of Capital Rate#DIV/0!Schedule 8, Line 62
72Total Return and Income Taxes Associated with ADIT Balance at#DIV/0!Line 70 * Line 71
year-end
73
74Annual Forecast Transmission Revenue Requirement Factor (FTRRF)#DIV/0!Line 67
75Less: Incremental Annual Forecast Transmission Revenue#DIV/0!Line 72/ Line 66
Requirement Factor Adjustment for ADIT
76Adjusted Annual Forecast Transmission Revenue Requirement Factor#DIV/0!Line 74 - Line 75
(AFTRRF)
Effective Date: 4/1/2023 - Docket #: ER23-973-002 - Page 1
NYISO Tariffs --> Open Access Transmission Tariff (OATT) --> 14 OATT Attachment H - Annual Transmission Revenue Requireme --> 14.2-14.2.1 OATT Att H Attachment 1 to Attachment H
Niagara Mohawk Power CorporationAttachment 1
Annual True-up (ATU)Schedule 3
Attachment H Section 14.1.9.2 (c)
Line No.YearSource:
1
214.1.9.2(d)The Annual True-Up (ATU) shall equal (1) the difference between the Actual Transmission Revenue Requirement and the Prior Year
3Transmission Revenue Requirement, plus (2) the difference between the Actual Scheduling, System Control and Dispatch costs
4and Prior Year Scheduling, System Control and Dispatch costs, plus (3) the difference between the Prior Year Billing Units and the Actual Year
5Billing Units multiplied by the Prior Year Unit Rate, plus (4) Interest on the net differences.
6
7(1)Revenue Requirement (RR) of rate effective July 1 of prior year$0Schedule 4, Line 1, Col (d)
8Less: Annual True-up (ATU) from rate effective July 1 of prior year$0Schedule 4, Line 1, Col (c)
9Prior Year Transmission Revenue Requirement$0Line 7 - Line 8
10
11Actual Transmission Revenue Requirement#DIV/0!Schedule 4, Line 2, Col (a)
12Difference#DIV/0!Line 11 - Line 9
13
14(2)Prior Year Scheduling, System Control and Dispatch costs (CCC)$0Schedule 4, Line 1, Col (e)
15Actual Scheduling, System Control and Dispatch costs (CCC)$0Schedule 4, Line 2, Col (e)
16Difference$0Line 15 - Line 14
17
18(3)Prior Year Billing Units (MWH)$0Schedule 4, Line 1, Col (f)
19Actual Billing Units-Schedule 4, Line 2, Col (f)
20Difference-Line 18 - Line 19
21Prior Year Indicative Rate#DIV/0!Schedule 4, Line 1, Col (g)
22Billing Unit True-Up#DIV/0!Line 20 * Line 21
23
24Total Annual True-Up before Interest#DIV/0!(Line 12 + Line 16 + Line 22)
25
26(4)Interest#DIV/0!Line 57, Column 9
27
28Annual True-up RR Component#DIV/0!(Line 24 + Line 26)
29
30Interest Calculation per 18 CFR § 35.19a
31(1)(2)(3)(4)(5)(6)(7)(8)(9)
32QuartersAnnualAccrued PrinMonthlyDaysAccrued PrinAccrued
33Interest& Int. @ Beg(Over)/UnderinPeriod& Int. @ EndInt. @ End
34Rate (a)Of PeriodRecoveryPeriod (b)DaysMultiplierOf PeriodOf Period
35
363rd QTR092921.0000$0$0
37July0.00%#DIV/0!31921.0000#DIV/0!#DIV/0!
38August0.00%#DIV/0!31611.0000#DIV/0!#DIV/0!
39September0.00%#DIV/0!30301.0000#DIV/0!#DIV/0!
40
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NYISO Tariffs --> Open Access Transmission Tariff (OATT) --> 14 OATT Attachment H - Annual Transmission Revenue Requireme --> 14.2-14.2.1 OATT Att H Attachment 1 to Attachment H
414th QTR#DIV/0!92921.0000#DIV/0!#DIV/0!
42October0.00%#DIV/0!31921.0000#DIV/0!#DIV/0!
43November0.00%#DIV/0!30611.0000#DIV/0!#DIV/0!
44December0.00%#DIV/0!31311.0000#DIV/0!#DIV/0!
45
461st QTR#DIV/0!91911.0000#DIV/0!#DIV/0!
47January0.00%#DIV/0!31911.0000#DIV/0!#DIV/0!
48February0.00%#DIV/0!28601.0000#DIV/0!#DIV/0!
49March0.00%#DIV/0!31311.0000#DIV/0!#DIV/0!
50
512nd QTR#DIV/0!91911.0000#DIV/0!#DIV/0!
52April0.00%#DIV/0!30911.0000#DIV/0!#DIV/0!
53May0.00%#DIV/0!31611.0000#DIV/0!#DIV/0!
54June0.00%#DIV/0!30301.0000#DIV/0!#DIV/0!
55
56
57Total (over)/under Recovery#DIV/0!(line 24)#DIV/0!#DIV/0!
(a) Interest rates shall be the interest rates as reported on the FERC Website http://www.ferc.gov/legal/acct-matts/interest-rates.asp
(b) For leap years use 29 days in the month of February
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NYISO Tariffs --> Open Access Transmission Tariff (OATT) --> 14 OATT Attachment H - Annual Transmission Revenue Requireme --> 14.2-14.2.1 OATT Att H Attachment 1 to Attachment H
Attachment 1
Schedule 4
Niagara Mohawk Power Corporation
Wholesale TSC Calculation Information
(a)(b)(c)(d)(e)(f)(g)
Historical
TransmissionForecastedScheduling
RevenueTransmissionRevenueSystem ControlAnnual Billing
RequirementRevenueRequirementand DispatchUnits (BU)
Line No.(Historical TRR)RequirementAnnual True Up(RR)Costs (CCC)MWhRate $/MWh (*)
1Prior Year Rates Effective ________------#DIV/0!
Current Year Rates Effective July 1,
2_______#DIV/0!#DIV/0!#DIV/0!--#DIV/0!
3Increase/(Decrease)#DIV/0!
4Percentage Increase/(Decrease)#DIV/0!
1.)Information directly from Niagara Mohawk Prior Year Informational Filing
2.)
(a)Schedule 1, Line 26
(b)Schedule 2, Line 49
(c)Schedule 3, Line 28
(d)Attachment H, Section 14.1.9.2 The RR Component shall equal Col (a) Historical Transmission Revenue Requirement plus Col (b) the Forecasted Transmission Revenue Requirement which shall
exclude Transmission Support Payments, plus Col (c) the Annual True-Up plus Col (c) the Annual True-Up
(e)Schedule 11, Line 21 - Annual Scheduling, System Control and Dispatch Costs. (i.e. the Transmission Component of control center costs) as recorded in FERC Account 561 and its associated sub-
accounts from the prior calendar year excluding any NY Independent System Operator (NYISO) system control and load dispatch expenses already recovered under Schedule 1 of the NYISO
Tariff.
(f) Schedule 12, line 17 - Billing Units shall be the total Niagara Mohawk load as reported to the NYISO for the calendar year prior to the Forecast Period, including the load for customers taking
service under Niagara Mohawk's TSC rate. The total Niagara Mohawk load will be adjusted to exclude (i) load associated with wholesale transactions being revenue credited through the WR,
CRR, SR, ECR, and Reserved components of Attachment H of the NYISO TSC rate including Niagara Mohawk's external sales, load associated with grandfathered OATT agreements, and any load
related to pre-OATT grandfathered agreements; (ii) load associated with transactions being revenue credited under Historical TRR Component J; and (iii) load associated with netted station
service.
(g)(Col (d) + Col (e)) / Col (f)
(*) The rate column represents the unit rate prior to adjustments; the actual rate will be determined pursuant to the applicable TSC formula rate.
Effective Date: 4/1/2023 - Docket #: ER23-973-002 - Page 1
NYISO Tariffs --> Open Access Transmission Tariff (OATT) --> 14 OATT Attachment H - Annual Transmission Revenue Requireme --> 14.2-14.2.1 OATT Att H Attachment 1 to Attachment H
Niagara Mohawk Power CorporationAttachment 1
Allocation Factors - As calculated pursuant to Section 14.1.9.1Schedule 5
Year
Shading denotes an input
Line
No.
DescriptionAmountSourceDefinition
114.1.9.1 1.Electric Wages and Salaries Factor83.5000%Fixed per settlement Docket ER08-552
2
314.1.9.1 3.Transmission Wages and Salaries Allocation Factor13.0000%Fixed per settlement Docket ER08-552
4
5
6
7
814.1.9.1 2.Gross Transmission Plant Allocation Factor
Gross Transmission Plant Allocation Factor shall equal the
9Transmission Plant in Service#DIV/0!Schedule 6, Page 2, Line 3, Col 5total investment in
Transmission Plant in Service, Transmission Related Electric
10Plus: Transmission Related General$0Schedule 6, Page 2, Line 5, Col 5General Plant,
Transmission Related Common Plant and Transmission
11Plus: Transmission Related Common$0Schedule 6, Page 2, Line 10, Col 5Related Intangible Plant
12Plus: Transmission Related Intangible Plant$0Schedule 6, Page 2, Line 15, Col 5divided by Gross Electric Plant.
13Gross Transmission Investment#DIV/0!Sum of Lines 9 - 13
14
15Total Electric PlantFF1 204-207.104g
16Plus: Electric Common$0Schedule 6, Page 2, Line 10, Col 3
17Gross Electric Plant in Service$0Line 15 + Line 16
18
19Percent Allocation#DIV/0!Line 13 / Line 17
20
2114.1.9.1 4.Gross Electric Plant Allocation Factor
22
23Total Electric Plant in Service$0Line 15Gross Electric Plant Allocation Factor shall equal
24Plus: Electric Common Plant$0Schedule 6, Page 2, Line 10, Col 3Gross Electric Plant divided by the sum of Total Gas Plant,
25Gross Electric Plant in Service$0Line 23 + Line 24Total Electric Plant, and Total Common Plant
26
27Total Gas Plant in ServiceFF1 200-201.8d, minus 4d
28Total Electric Plant in Service$0Line 15
29Total Common Plant in Service$0Schedule 6, Page 2, Line 10, Col 1
Effective Date: 4/1/2023 - Docket #: ER23-973-002 - Page 1
NYISO Tariffs --> Open Access Transmission Tariff (OATT) --> 14 OATT Attachment H - Annual Transmission Revenue Requireme --> 14.2-14.2.1 OATT Att H Attachment 1 to Attachment H
30Gross Plant in Service (Gas & Electric)-Sum of Lines 27-Lines 29
31
32Percent Allocation#DIV/0!Line 25 / Line 30
Effective Date: 4/1/2023 - Docket #: ER23-973-002 - Page 1
NYISO Tariffs --> Open Access Transmission Tariff (OATT) --> 14 OATT Attachment H - Annual Transmission Revenue Requireme --> 14.2-14.2.1 OATT Att H Attachment 1 to Attachment H
Attachment 1
Schedule 6
Niagara Mohawk Power CorporationPage 1 of 2
Annual Revenue Requirements of Transmission Facilities Transmission Investment Base (Part 1 of 2)
Attachment H, section 14.1.9.2
Line No.
114.1.9.2 (a)Transmission Investment Base
2
3A.1.Transmission Investment Base shall be defined as (a) Transmission Plant in Service, plus (b) Transmission Related Electric General Plant, plus
4(c) Transmission Related Common Plant, plus (d) Transmission Related Intangible Plant, plus (e) Transmission Related Plant Held for Future Use, less
5(f) Transmission Related Depreciation Reserve, less (g) Transmission Related Accumulated Deferred Taxes, plus (h)
6Transmission Regulatory Assets and Liabilities, plus (i) Transmission Related Prepayments, plus (j) Transmission Related Materials and Supplies,
7plus (k) Transmission Related Cash Working Capital.
8
9
10DescriptionReferenceYearReference
11Section:
12Transmission Plant in Service(a)#DIV/0!Schedule 6, page 2, line 3, column 5
13General Plant(b)$0Schedule 6, page 2, line 5, column 5
14Common Plant(c)$0Schedule 6, page 2, line 10, column 5
15Intangible Plant(d)$0Schedule 6, page 2, line 15, column 5
16Plant Held For Future Use(e)$0Schedule 6, page 2, line 19, column 5
17Total Plant (Sum of Line 12 - Line 16)#DIV/0!
18
19Accumulated Depreciation(f)#DIV/0!Schedule 6, page 2, line 29, column 5
20Accumulated Deferred Income Taxes(g)#DIV/0!Schedule 7, line 6, column 5
21Transmission Regulatory Assets and Liabilities(h)#DIV/0!Schedule 7, line 11, column 5
22Net Investment (Sum of Line 17 -Line 21)#DIV/0!
23
24Prepayments(i)#DIV/0!Schedule 7, line 15, column 5
25Materials & Supplies(j)#DIV/0!Schedule 7, line 21, column 5
26Cash Working Capital(k)$0Schedule 7, line 28, column 5
27
28Total Investment Base (Sum of Line 22 - Line 26)#DIV/0!
Effective Date: 4/1/2023 - Docket #: ER23-973-002 - Page 1
NYISO Tariffs --> Open Access Transmission Tariff (OATT) --> 14 OATT Attachment H - Annual Transmission Revenue Requireme --> 14.2-14.2.1 OATT Att H Attachment 1 to Attachment H
Niagara Mohawk Power CorporationAttachment 1
Annual Revenue Requirements of Transmission FacilitiesSchedule 6
Transmission Investment Base (Part 1 of 2)Page 2 of 2
Attachment H Section 14.1. 9.2 (a) A. 1.
Year
Shading denotes an input
(2)(3) = (1)*(2)(4)(5) = (3)*(4)
FERC Form
Line(1)AllocationElectricAllocationTransmission1/PSC Report
Reference for
No.TotalFactorAllocatedFactorAllocatedcol (1)Definition
FF1 204-Transmission Plant in Service shall
1Transmission Plant207.58g14.1.9.2(a)A.1.(a)equal the
balance of total investment in
2Wholesale Meter Plant#DIV/0!Workpaper 1Transmission Plant
plus Wholesale Metering
3Total Transmission Plant in Service (Line 1+ Line 2)#DIV/0!Investment.
4
FF1 204-Transmission Related Electric
5General Plant100.00%$013.00%(c)$0207.99g14.1.9.2(a)A.1.(b)General Plant shall
equal the balance of investment
6in Electric General
Plant multiplied by the
7Transmission Wages and
8Salaries Allocation Factor.
9
FF1 200-201.Transmission Related Common
10Common Plant83.50%(a)$013.00%(c)$08h14.1.9.2(a)A.1.(c)Plant shall equal Common
Plant multiplied by the Electric
11Wages and Salaries
Allocation Factor and further
12multiplied by the
Transmission Wages and
13Salaries Allocation Factor.
14
FF1 204-Transmission Related Intangible
15Intangible Plant100.00%-13.00%(c)$0207.5g14.1.9.2(a)A.1.(d)Plant shall equal Intangible
Electric Plant multiplied by the
16Transmission Wages and
17Salaries Allocation Factor.
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NYISO Tariffs --> Open Access Transmission Tariff (OATT) --> 14 OATT Attachment H - Annual Transmission Revenue Requireme --> 14.2-14.2.1 OATT Att H Attachment 1 to Attachment H
18
WorkpaperTransmission Related Plant Held
19Transmission Plant Held for Future Use$0$01014.1.9.2(a)A.1.(e)for Future Use shall equal
the balance in Plant Held for
20Future Use associated with
property planned to be used for
21transmission service within
22five years.
Transmission Accumulated
23Depreciation
Transmission Related
Depreciation Reserve shall
24Transmission Accum. Depreciation$0FF1 219.25b14.1.9.2(a)A.1.(f)equal the
balance of: (i) Transmission
25General Plant Accum.Depreciation100.00%$013.00%(c)$0FF1 219.28bDepreciation Reserve, plus (ii)
the product of Electric General
26Common Plant Accum Depreciation83.50%(a)$013.00%(c)$0FF1 200-201.22hPlant Depreciation Reserve
multiplied by the Transmission
27Amortization of Other Utility Plant100.00%$013.00%(c)$0FF1 200-201.21cWages and Salaries
Allocation Factor, plus (iii) the
28Wholesale Meters#DIV/0!#DIV/0!Workpaper 1product of Common Plant
Depreciation Reserve multiplied
29Total Depreciation (Sum of Line 24 - Line 28)#DIV/0!by the Electric Wages and
Salaries Allocation Factor and
30further multiplied by the
Transmission Wages and
Salaries Allocation Factor plus
31(iv)
the product of Intangible
Electric Plant Depreciation
32Reserve
multiplied by the Transmission
33Wages and Salaries
Allocation Factor plus (v)
depreciation reserve associated
34with
the Wholesale Metering
35Investment.
36
Allocation Factor Reference
(a) Schedule 5, line 1
(b) Schedule 5, line 32 - not used on this Schedule
(c) Schedule 5, line 3
(d) Schedule 5, line 19 - not used on this Schedule
Effective Date: 4/1/2023 - Docket #: ER23-973-002 - Page 1
NYISO Tariffs --> Open Access Transmission Tariff (OATT) --> 14 OATT Attachment H - Annual Transmission Revenue Requireme --> 14.2-14.2.1 OATT Att H Attachment 1 to Attachment H
Niagara Mohawk Power CorporationAttachment 1
Annual Revenue Requirements of Transmission FacilitiesSchedule 7
Transmission Investment Base ( Part 2 of 2)
Attachment H Section 14.1.9.2 (a) A. 1.
Shading denotes an inputYear
(2)(3) = (1)*(2)(5) = (3)*(4)
Line(1)AllocationElectric(4)TransmissionFERC Form 1/PSC Report
No.TotalFactorAllocatedAllocation FactorAllocatedReference for col (1)Definition
Transmission Accumulated Deferred Taxes
1Accumulated Deferred Taxes (281)100.00%$0#DIV/0!(d#DIV/0!FF1 272-273 Line 2k14.1.9.2(a)A.1.(g)Transmission Related Accumulated Deferred Income Taxes
2Accumulated Deferred Taxes (282)100.00%$0#DIV/0!(d)#DIV/0!Schedule 13(a) AADIT, Line 3
3Accumulated Deferred Taxes (283)$0100.00%$0#DIV/0!(d)#DIV/0!Workpaper 2, Line 5shall equal the electric balance of Total Accumulated Deferred
4Accumulated Deferred Taxes (190)100.00%$0#DIV/0!(d)#DIV/0!FF1 234.8cIncome Taxes (FERC Accounts 190, 55,281, 282, and 283 net of
5Accumulated Deferred Inv. Tax Cr (255)100.00%$0#DIV/0!(d)#DIV/0!FF1 266-267.8hstranded costs), multiplied by the Gross Transmission Plant
6Total (Sum of Line 2 - Line 5)$0#DIV/0!Allocation Factor.
7Transmission Regulatory Assets and Liabilities
8Excess AFUDC100.00%$0#DIV/0!(d)#DIV/0!FF1 232 lines_ f14.1.9.2(a)A.1.(h)Transmission Related Regulatory Assets and Liabilities shall equal: (i) the
balance of Regulatory Assets net of Regulatory Liabilities assigned to
Transmission plus (ii) the electric balance of Regulatory Assets net of
Regulatory Liabilities multiplied by the Gross Transmission Plant Allocation
Factor.
9FAS 109$0100.00%$0#DIV/0!(d)#DIV/0!Schedule 14, line 3a, column Q
10Excess (Deficient) ADIT - Tax Rate Changes$0100.00%$0100.00%$0Schedule 14, line 2, column Q
11Total (Line 8 + Line 9 + Line 10)$0$0#DIV/0!
12
13Transmission PrepaymentsFF1 110-111.57c14.1.9.2(a)A.1.(i)Transmission Related Prepayments shall be the product of
14Less: Prepaid State and Federal Income TaxFF1 262-263 _ kPrepayments excluding Federal and State taxes multiplied by
15Total Prepayments (Line 13 + Line 14)$0#DIV/0!(b)#DIV/0!#DIV/0!(d)#DIV/0!the Gross Electric Plant Allocation Factor and further
16multiplied by the Gross Transmission Plant Allocation Factor.
17
18Transmission Material and Supplies14.1.9.2(a)A.1.(j)Transmission Related Materials and Supplies shall equal: (i)
19Trans. Specific O&M Materials and Supplies$0FF1 227.8cthe balance of Materials and Supplies assigned to
20Construction Materials and Supplies#DIV/0!(b)#DIV/0!#DIV/0!(d)#DIV/0!FF1 227.5cTransmission plus (ii) the product of Material and Supplies
21Total (Line 19 + Line 20)#DIV/0!assigned to Construction multiplied by the Gross Electric
22Plant Allocation Factor and further multiplied by Gross
23Transmission Plant Allocation Factor.
24
25Cash Working Capital14.1.9.2(a)A.1.(k)Transmission Related Cash Working Capital shall be an
26Operation & Maintenance Expense$0Schedule 9, Line 23allowance equal to the product of: (i) 12.5% (45 days/ 360 days = 12.5%)
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NYISO Tariffs --> Open Access Transmission Tariff (OATT) --> 14 OATT Attachment H - Annual Transmission Revenue Requireme --> 14.2-14.2.1 OATT Att H Attachment 1 to Attachment H
270.1250x 45 / 360multiplied by (ii) Transmission Operation and Maintenance Expense.
28Total (Line 26 * Line 27)$0
Allocation Factor Reference
(a) Schedule 5, line 1 - not used on this Schedule
(b) Schedule 5, line 32
(c) Schedule 5, line 3 - not used on this Schedule
(d) Schedule 5, line 19
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NYISO Tariffs --> Open Access Transmission Tariff (OATT) --> 14 OATT Attachment H - Annual Transmission Revenue Requireme --> 14.2-14.2.1 OATT Att H Attachment 1 to Attachment H
Niagara Mohawk Power CorporationAttachment 1
Annual Revenue Requirements of Transmission FacilitiesSchedule 8
Cost of Capital Rate
Shading denotes an inputYear
Line
No.
1The Cost of Capital Rate shall equal the proposed Weighted Costs of Capital plus Federal Income Taxes and State Income Taxes.
2The Weighted Costs of Capital will be calculated for the Transmission Investment Base using NMPC’s actual capital structure and will equal the sum of (i),
(ii), and (iii) below:
3
4(i)the long-term debt component, which equals the product of the actual weighted average embedded cost to maturity of NMPC’s long-term debt
outstanding during the year and the sum of (a) the ratio of actual long-term debt to total capital at year-end; and
5(b) the extent, if any, by which the ratio of NMPC's actual common equity to total capital at year-end exceeds fifty percent (50%). Long term debt shall be
defined as the average of the beginning of the year and end of year balances of the following: long term debt less the unamortized
6Discounts on Long-Term Debt less the unamortized Loss on Reacquired Debt plus unamortized Gain on Reacquired Debt. Cost to maturity of NMPC's long-
term debt shall be defined as the cost of long term debt included in the debt discount expense and
7any loss or gain on reacquired debt.
8(ii)the preferred stock component, which equals the product of the actual weighted average embedded cost to maturity of NMPC’s preferred stock then
outstanding and the ratio of actual preferred stock to total capital at year-end;
9
10(iii)the return on equity component shall be the product of the allowed return on equity of 10.3% and the ratio of NMPC’s actual common equity to total
capital at year-end, provided that such ratio
11shall not exceed fifty percent (50%).
12
13WEIGHTED
14CAPITALIZATIONCOST OFCOST OFEQUITY
15CAPITALIZATIONSource:RATIOSCAPITALSource:CAPITALPORTION
16
Workpaper 6, LineWorkpaper 6,
17(i)Long-Term Debt$016b#DIV/0!#DIV/0!Line 17c#DIV/0!
Workpaper 6,
18(ii)Preferred StockFF1 112-113.3c#DIV/0!#DIV/0!Line 24d#DIV/0!#DIV/0!
FF1 112-113.16c - FF1
19(iii)Common Equity112-113.3,12,15c#DIV/0!10.30%#DIV/0!#DIV/0!
20
Total Investment
21Return$0#DIV/0!#DIV/0!#DIV/0!
22
23
24
25
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NYISO Tariffs --> Open Access Transmission Tariff (OATT) --> 14 OATT Attachment H - Annual Transmission Revenue Requireme --> 14.2-14.2.1 OATT Att H Attachment 1 to Attachment H
58
59
Transmission
Investment
60Base#DIV/0!Schedule 6, page 1 of 2, Line 28
61
Cost of Capital
62Rate#DIV/0!Line 53
63
= Investment Return
64and Income Taxes#DIV/0!Line 60 X Line 62
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NYISO Tariffs --> Open Access Transmission Tariff (OATT) --> 14 OATT Attachment H - Annual Transmission Revenue Requireme --> 14.2-14.2.1 OATT Att H Attachment 1 to Attachment H
Niagara Mohawk Power CorporationAttachment 1
Annual Revenue Requirements of Transmission FacilitiesSchedule 9
Transmission Expenses
Attachment H Section 14.1.9.2Year
Shading denotes an input
(2)(3) = (1)*(2)(5) = (3)*(4)FERC Form 1/
Line(1)AllocationElectric(4)TransmissionPSC Report
No.TotalFactorAllocatedAllocation FactorAllocatedReference for col (1)Definition
Depreciation Expense
1Transmission Depreciation$0FF1 336-337.7f14.1.9.2.B.Transmission Related Depreciation Expense shall equal the sum of:
2General Depreciation100.0000%$013.0000% (c)$0FF1 336-337.10f(i) Depreciation Expense for Transmission Plant in Service, plus (ii)
3Common Depreciation83.5000% (a)$013.0000% (c)$0FF1 356the product of Electric General Plant Depreciation Expense multiplied
4Intangible Depreciation100.0000%$013.0000% (c)$0FF1 336-337.1fby the Transmission Wages and Salaries Allocation Factor plus (iii)
5Wholesale Meters#DIV/0!Workpaper 1Common Plant Depreciation Expense multiplied by the Electric
6Total (Line 1+2+3+4+5)#DIV/0!Wages and Salaries Allocation Factor, further multiplied by the
7Transmission Wages and Salaries Allocation Factor plus (iv)
8Intangible Electric Plant Depreciation Expense multiplied by the
9Transmission Wages and Salaries Factor plus (v) depreciation
10expense associated with the Wholesale Metering Investment.
11
12Real Estate Taxes100.0000%$0#DIV/0! (d)#DIV/0!FF1 262-263 _ l14.1.9.2.C.Transmission Related Real Estate Tax Expense shall equal the
13electric Real Estate Tax Expenses multiplied by the Gross
14Transmission Plant Allocation Factor.
15
16Amortization of Investment Tax Credits#DIV/0!(b)#DIV/0!#DIV/0!(d)#DIV/0!FF1 114-117.58c14.1.9.2.D.Transmission Related Amortization of Investment Tax Credits shall
17equal the product of Amortization of Investment Tax Credits multiplied
18by the Gross Electric Plant Allocation Factor and further multiplied by
19the Gross Transmission Plant Allocation Factor.
20Transmission Operation and Maintenance
21Operation and Maintenance$0FF1 320-323.112b14.1.9.2.E.Transmission Operation and Maintenance Expense shall equal
22less Load Dispatching - #561$0FF1 320-323.85-92bthe sum of electric expenses as recorded in
23O&M (Line 21 - Line 22)$0$0FERC Account Nos. 560, 562-574.
24
25Transmission Administrative and GeneralTransmission Related Administrative and General Expenses shall
26Total Administrative and GeneralFF1 320-323.197bequal the product of electric Administrative and General Expenses,
27less Property Insurance (#924)FF1 320-323.185bexcluding the sum of Electric Property Insurance, Electric Research and
28less Pensions and Benefits (#926)FF1 320-323.187bDevelopment Expense and Electric Environmental Remediation Expense,
29less: Research and Development Expenses$0Workpaper 12
(#930)and 50% of the NYPSC Regulatory Expense
30Less: 50% of NY PSC Regulatory Expense50% of Workpaper 15multiplied by the Transmission Wages and Salaries Allocation Factor,
Less: 18a Charges (Temporary Assessment
31Workpaper 15
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NYISO Tariffs --> Open Access Transmission Tariff (OATT) --> 14 OATT Attachment H - Annual Transmission Revenue Requireme --> 14.2-14.2.1 OATT Att H Attachment 1 to Attachment H
32less: Environmental Remediation Expense$0Workpaper 11plus the sum of Electric Property Insurance multiplied by the Gross
33Subtotal (Line 26-27-28-29-30-31-32)$0100.0000%$013.0000% (c)$0Transmission Plant Allocation Factor, plus transmission-specific Electric
34PLUS Property Insurance alloc. using Plant$0100.0000%$0#DIV/0! (d)#DIV/0!Line 27
AllocationResearch and Development Expense, and transmission-specific
35PLUS Pensions and Benefits$88,644,000100.0000%$88,644,00013.0000% (c)$11,523,720Workpaper 3Electric Environmental Remediation Expense. In addition, Administrative
36PLUS Transmission-related research and$0$0Workpaper 12
developmentand General Expenses shall exclude the actual Post-Employment
37PLUS Transmission-related Environmental$0$0Workpaper 11
ExpenseBenefits Other than Pensions ("PBOP") included in FERC Account 926,
38Total A&G (Line 33+34+35+36+37)$88,644,000$88,644,000#DIV/0!and shall add back in the amounts shown on Workpaper 3, page 1,
39or other amount subsequently approved by FERC under Section 205 or 206.
40Payroll Tax Expense14.1.9.2.G. Transmission Related Payroll Tax Expense shall equal the product of
41Federal UnemploymentFF1 262-263.12Ielectric Payroll Taxes multiplied by the Transmission Wages and
42FICAFF1 262-263.17ISalaries Allocation Factor.
43State UnemploymentFF1 262-263.13I
44Total (Line 41+42+43)$0100.0000%$013.0000% (b)$0
45
46Amortization of (Excess)/ Deficient ADIT$0100.0000%$0#DIV/0! (d)#DIV/0!Schedule 14, line 2, column14.1.9.2.HTransmission related Amortization of Regulatory Assets and Liabilities shall
Jequal the transmission-specific Amortization of Regulatory Assets and
Liabilities
Allocation Factor Reference
(a) Schedule 5, line 1
(b) Schedule 5, line 32
(c) Schedule 5, line 3
(d) Schedule 5, line 19
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NYISO Tariffs --> Open Access Transmission Tariff (OATT) --> 14 OATT Attachment H - Annual Transmission Revenue Requireme --> 14.2-14.2.1 OATT Att H Attachment 1 to Attachment H
Niagara Mohawk Power CorporationAttachment 1
Annual Revenue Requirements of Transmission FacilitiesSchedule 10
Billing Adjustments, Revenue Credits, Rental Income
Year
Attachment H Section 14.1.9.2 (a)
Shading denotes an input
Line(1)
No.DescriptionTotalSourceDefinition
1Billing AdjustmentsWorkpaper 1614.1.9.2.I.Billing Adjustments shall be any adjustments made in accordance with Section 14.1.9.4.4 below.
2( ) indicates a refund or a reduction to the revenue requirement on Schedule 1.
3
4Bad Debt Expense$0Workpaper 414.1.9.2.J.Transmission Related Bad Debt Expense shall equal
5Bad Debt Expense as reported in Account 904 related to NMPC's wholesale transmission billing.
6
7Revenue Credits$0Workpaper 514.1.9.2.K.Revenue Credits shall equal all Transmission revenue recorded in FERC account 456
8excluding (a) any NMPC revenues already reflected in the WR, CRR, SR, ECR and Reserved
9components in Attachment H of the NYISO TSC rate; (b) any revenues associated
10with expenses that have been excluded from NMPC’s revenue requirement; (c) any
11revenues associated with transmission service provided under this TSC rate, for which the
12load is reflected in the calculation of BU, and (d) any revenues associated with Schedule 15a
13transmission projects not charged under this TSC rate.
14
15Transmission Rents$0Workpaper 714.1.9.2.L.Transmission Rents shall equal all Transmission-related rental income recorded in FERC
16account 454.615
17
18Project Specific Revenue Requirement Credit#DIV/0!Schedule 15a Line 1714.1.9.2.M.Project Specific Revenue Requirement Credit shall equal the Base Revenue Requirement associated
with transmission projects not charged under this TSC rate.
19
2014.1.9.4(d)
211Any changes to the Data Inputs for an Annual Update, including but not limited to
22revisions resulting from any FERC proceeding to consider the Annual Update, or
23as a result of the procedures set forth herein, shall take effect as of the beginning
24of the Update Year and the impact of such changes shall be incorporated into the
25charges produced by the Formula Rate (with interest determined in accordance
26with 18 C.F.R. § 38.19(a)) in the Annual Update for the next effective Update
27Year. This mechanism shall apply in lieu of mid-Update Year adjustments and
28any refunds or surcharges, except that, if an error in a Data Input is discovered
29and agreed upon within the Review Period, the impact of such change shall be
30incorporated prospectively into the charges produced by the Formula Rate during
31the remainder of the year preceding the next effective Update Year, in which case
32the impact reflected in subsequent charges shall be reduced accordingly.
332The impact of an error affecting a Data Input on charges collected during the
34Formula Rate during the five (5) years prior to the Update Year in which the error
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NYISO Tariffs --> Open Access Transmission Tariff (OATT) --> 14 OATT Attachment H - Annual Transmission Revenue Requireme --> 14.2-14.2.1 OATT Att H Attachment 1 to Attachment H
35was first discovered shall be corrected by incorporating the impact of the error on
36the charges produced by the Formula Rate during the five-year period into the
37charges produced by the Formula Rate (with interest determined in accordance
38with 18 C.F.R. § 38.19(a)) in the Annual Update for the next effective Update
39Year. Charges collected before the five-year period shall not be subject to correction.
(b)List of Items excluded from the Revenue Requirement
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NYISO Tariffs --> Open Access Transmission Tariff (OATT) --> 14 OATT Attachment H - Annual Transmission Revenue Requireme --> 14.2-14.2.1 OATT Att H Attachment 1 to Attachment H
Attachment 1
Schedule 11
Niagara Mohawk Power CorporationPage 1 of 1
System, Control, and Load Dispatch Expenses (CCC)
Attachment H, Section
14.1.9.5
The CCC shall equal the annual Scheduling, System Control and Dispatch Costs (i.e.,
the transmission component of control center costs) as recorded in FERC Account 561 and its associated sub-accounts using information from the prior calendar year, excluding NYISO system control and load dispatch expense
already recovered under Schedule 1 of the NYISO Tariff.
Line
No.
1Scheduling and Dispatch ExpensesYearSource
2
3
4Accounts561.1ReliabilityFF1 320-323.85b
5Accounts561.2Monitor and Operate Transmission SystemFF1 320-323.86b
6Accounts561.3Transmission Service and ScheduleFF1 320-323.87b
7Accounts561.4Scheduling System Control and DispatchFF1 320-323.88b
8Accounts561.5Reliability, Planning and Standards DevelopmentFF1 320-323.89b
9Accounts561.6Transmission Service StudiesFF1 320-323.90b
10Accounts561.7Generation Interconnection StudiesFF1 320-323.91b
11Accounts561.8Reliability, Planning and Standards Dev. ServicesFF1 320-323.92b
12
13Total Load Dispatch Expenses (sum of Lines 4 - 11)Sum of Lines 4 - 11
14
15Less Account 561 directly recovered under Schedule 1 of the NYISO Tariff
16
17Accounts561.4Scheduling System Control and DispatchLine 7
18Accounts561.8Reliability, Planning and Standards Dev. ServicesLine 11
19Total NYISO Schedule 1Line 17 + Line 18
20
21Total CCC ComponentLine 13 - Line 19
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NYISO Tariffs --> Open Access Transmission Tariff (OATT) --> 14 OATT Attachment H - Annual Transmission Revenue Requireme --> 14.2-14.2.1 OATT Att H Attachment 1 to Attachment H
Attachment 1
Schedule 12
Niagara Mohawk Power CorporationPage 1 of 1
Billing Units - MWH
Attachment H, Section 14.1.9.6
BU shall be the total Niagara Mohawk load as reported to the NYISO for the calendar billing year prior to the Forecast Period, including the load for customers taking service under
Niagara Mohawk’s TSC Rate. The total Niagara Mohawk load will be adjusted to exclude (i) load associated with wholesale transactions being revenue credited through the WR, CRR, SR,
ECR and Reserved components of Workpaper H of the NYISO TSC rate including Niagara Mohawk’s external sales, load associated with grandfathered OATT agreements, and any load
related to pre-OATT grandfathered agreements; (ii) load associated with transactions being revenue credited under Historical TRR Component J; and (iii) load associated with netted
station service.
Line No.SOURCE
1Subzone 1NIMO TOL (transmission owner load)
2Subzone 2NIMO TOL (transmission owner load)
3Subzone 3NIMO TOL (transmission owner load)
4Subzone 4NIMO TOL (transmission owner load)
5Subzone 29NIMO TOL (transmission owner load)
6Subzone 31NIMO TOL (transmission owner load)
7Total NIMO Load report to NYISO0.000Sum of Lines 1-6
8LESS: All non-retail transactions
9WatertownFF1 page 328-330._.j
10Disputed Station ServiceNIMO TOL (transmission owner load)
11Other non-retail transactionsAll other non-retail transactions (Sum of 300,000 series PTID's from TOL)
12Total Deductions0.000Sum of Lines 9 - 11
13PLUS: TSC Load
14NYMPA Muni's, Misc. Villages, Jamestown (X1)FF1 page 328-330. _.j
15NYPA Niagara Muni's (X2)FF1 page 328-330. _.j
16Total additions0.000Sum of Lines 14 -15
17Total Billing Units0.000Line 7 - Line 12 + Line 16
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NYISO Tariffs --> Open Access Transmission Tariff (OATT) --> 14 OATT Attachment H - Annual Transmission Revenue Requireme --> 14.2-14.2.1 OATT Att H Attachment 1 to Attachment H
(a) Enter credit balances as negatives.
(b) The balance in Line 1, Total ADIT Balance at year-end, shall equal such ADIT that is subject to the normalization rules prescribed by the IRS.
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NYISO Tariffs --> Open Access Transmission Tariff (OATT) --> 14 OATT Attachment H - Annual Transmission Revenue Requireme --> 14.2-14.2.1 OATT Att H Attachment 1 to Attachment H
(i)Tax gross up calculated using the Composite Tax Rate / (1 - Composite Tax Rate) in effect for the applicable period.
(j)Other Electric Transmission and Distribution FAS 109 balances
(k)Niagara Mohawk Power Company will add footnotes below to identify excess or deficient ADIT from future Federal, State and
Local income tax rate changes.
(l)[]
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NYISO Tariffs --> Open Access Transmission Tariff (OATT) --> 14 OATT Attachment H - Annual Transmission Revenue Requireme --> 14.2-14.2.1 OATT Att H Attachment 1 to Attachment H
6FF1 Page 232 f
-
7FF1 Page 278 f
8
-
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NYISO Tariffs --> Open Access Transmission Tariff (OATT) --> 14 OATT Attachment H - Annual Transmission Revenue Requireme --> 14.2-14.2.1 OATT Att H Attachment 1 to Attachment H
Niagara Mohawk Power Corporation
Project Specific Revenue Requirement Calculation Smart Path Connect
Shading denotes an input
Line
No.Description
1Project Gross Plant In-Service
2CWIP
Project - Related Depreciation and Amortization Reserves (Enter
3 Credit)
4Project - Related Accumulated Deferred Income Taxes (Enter Credit)
5Project - Related (Excess) Deficient ADIT
6Project - Related Prepayments
7Project - Related Materials & Supplies
8Project - Related Cash Working Capital
9Net Investment Base
10Project Specific Investment Base excl CWIP Return and Asso. Taxes
11Project - Related Depreciation Expense
12Project - Related Amortization of (Excess) Deficient ADIT
13Project - Related Real Estate Taxes
______________________ /___________________________
AmountSource
-Workpaper _
-Workpaper _
-Workpaper _
-Workpaper _
-Schedule 15c _ Line 2Q
#DIV/0!(Line 1/ Schedule 5 Line 13 ) * Schedule 7 Line 15 Column (5)
#DIV/0!(Line 1/ Schedule 5 Line 13 ) * Schedule 7 Line 21 Column (5)
#DIV/0!(Line 1/ Schedule 5 Line 13 ) * Schedule 7 Line 28 Column (5)
#DIV/0!Sum lines 1 through 8
#DIV/0!Schedule 15b Line 24
-Workpaper _
-Schedule 15c _ Line 2J
-Workpaper _
Attachment 1
Schedule 15a _
Page 1 of 1
Definitions
Project Gross Plant In-Service will be the total capital investment for the project included in
Transmission Plant In Service plus an allocation of Transmission allocated General, Common
and Intangible Plant based on the ratio of project specific transmission plant to Transmission
Plant.
Authorized by FERC Order ______________
Project-related depreciation and amortization reserve shall equal the accumulated credit of Project - Related Depreciation Expense net of any applicable retirements, cost of removal or salvage adjustments associated with the project.
Project - Related Accumulated Deferred Income Taxes shall equal ADIT calculated based on cost, accumulated book depreciation and accumulated tax depreciation.
Project - Related (Excess) Deficient ADIT shall be the unamortized excess or deficient ADIT balance related specifically to the project as per Schedule 15c.
Project - Related Prepayments shall equal the ratio of Project Gross Plant In-Service to Gross Transmission Investments times Transmission Related Prepayments
Project - Related Materials & Supplies shall equal the ratio of Project Gross Plant In-Service to Gross Transmission Investments times Transmission Related Materials & Supplies
Project - Related Cash Working Capital shall equal the ratio of Project Gross Plant In-Service to Gross Transmission Investments times Transmission Related Cash Working Capital
Project-related depreciation expense will be determined based on application of the current FERC approved depreciation accrual rates per Section 14.1.9.1.14 of Attachment H of the NYISO OATT on a utility account basis to the Project Gross Plant In-service.
Project - Related Amortization of (Excess) Deficient ADIT shall be the annual amortized excess or deficient ADIT balance related specifically to the project as identified in Schedule 15c Project Specific (Excess) Deficient ADIT.
Project related portion of Transmission Related Real Estate Tax Expense as determined based on the taxable value of the investment and the applicable property tax rate.
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NYISO Tariffs --> Open Access Transmission Tariff (OATT) --> 14 OATT Attachment H - Annual Transmission Revenue Requireme --> 14.2-14.2.1 OATT Att H Attachment 1 to Attachment H
Project - Related Operation and Maintenance Expense shall be based on charges to project-
specific work orders. Operation & maintenance costs that cannot be directly attributed to a
project will be allocated to a project based on the ratio of the Project Gross Plant In-service to
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NYISO Tariffs --> Open Access Transmission Tariff (OATT) --> 14 OATT Attachment H - Annual Transmission Revenue Requireme --> 14.2-14.2.1 OATT Att H Attachment 1 to Attachment H
14Project - Related Operation & Maintenance Expense-
15Project Allocated Administrative & General Expense#DIV/0!
-
16Billing Adjustments
Workpaper _
(Line 1/ Schedule 5 Line 13) * (Schedule 9 Line 38 Column (5) + Schedule 9 Line 44 Column (5))
Workpaper _
Gross Transmission Investments.
Project Allocated Administrative and General Expense shall equal the ratio of Project Gross Plant In-Service to Gross Transmission Investment times the sum of Transmission Related Administrative and General Expenses and Transmission Related Payroll Tax Expense.
Billing Adjustments shall be any adjustments made in accordance with Section 14.1.9.4.4
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63
64 Total (Over)/Under Recovery#DIV/0!#DIV/0!#DIV/0!
(a)First year revenue requirement to be prorated based on in-service date of project or FERC approval of CWIP recovery
(b)Interest rates shall be the interest rates as reported on the FERC Website http://www.ferc.gov/legal/acct-matts/interest-rates.asp
(c) For leap years use 29 days in the month of February
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NYISO Tariffs --> Open Access Transmission Tariff (OATT) --> 14 OATT Attachment H - Annual Transmission Revenue Requireme --> 14.2-14.2.1 OATT Att H Attachment 1 to Attachment H
Niagara Mohawk Power CorporationAttachment 1
Project Return and Associated Income TaxesSchedule 15b
Smart Path ConnectPage 37 of 41
Shading denotes an input
Cost of Capital rate will equal the cost of capital rate calculated using the Weighted Costs of Capital as defined in Section 14.1.9.2.2 (i), (ii) and (iii) of
Cost Of CapitalAttachment H of the OATT.
(a)(b)(d)
CAPITALIZATION(c)WEIGHTED COST OF(e)
LineCAPITALIZATIONRATIOSCOST OF CAPITALCAPITALEQUITY PORTIONSource:
1
2LONG TERM DEBT$0#DIV/0!#DIV/0!#DIV/0!Schedule 8 Line 17
3PREFERRED STOCK$0#DIV/0!#DIV/0!#DIV/0!#DIV/0!Schedule 8 Line 18
4COMMON EQUITY$0#DIV/0!10.30%#DIV/0!#DIV/0!Schedule 8 Line 19
5
6TOTAL INVESTMENT RETURN$0#DIV/0!#DIV/0!#DIV/0!Line 2 + Line 3 + Line 4
7
8
9Federal Income Tax
10Equity WACC#DIV/0!Line 6(e)
11Federal Income Tax Rate0.00%Schedule 8 Line 32
12Federal Income Tax#DIV/0!(Line 10*Line 11)/(1-Line 11)
13
14State Income Tax
15State Income Tax Rate0.00%Schedule 8 Line 46
16State Income Tax#DIV/0!(Line 10 + Line 12)*Line 15/(1- Line 15)
17
18Cost of Capital Rate#DIV/0!Line 6(d) + Line 12+ Line 16
19Project Specific Investment Base excl CWIP#DIV/0!Schedule 15a Line 9 - Line 2
20Project Specific Investment Base CWIP--Schedule 15a Line 2
21Total Investment Base#DIV/0!
22
23Return and Associated Taxes
24Project Specific Investment Base excl CWIP Return and Asso. Taxes#DIV/0!Line 19 * Line 18
25Project Specific Investment Base CWIP Return and Asso. Taxes#DIV/0!Line 20 * Line 18
26
27Total Return and Associated Income Taxes#DIV/0!Sum Line 24 + 25
Notes: Enter credit balances as negatives.
Effective Date: 4/1/2023 - Docket #: ER23-973-002 - Page 1
NYISO Tariffs --> Open Access Transmission Tariff (OATT) --> 14 OATT Attachment H - Annual Transmission Revenue Requireme --> 14.2-14.2.1 OATT Att H Attachment 1 to Attachment H
Niagara Mohawk Power CorporationAttachment 1
Annual Revenue Requirements of Transmission FacilitiesSchedule 15c
Page 1 of 2
Smart Path Connect (Excess)/Deficient ADIT Worksheet_ For Costs in 20__
Input Cells are Shaded Yellow
(A)(B)( C)(D) = (A)( E)(F)(G)(H)(I)(J)
+ (B) +
(C)
20__ Year End Unamortized (Excess)/Deficient ADIT (d)Amortization Periods (e)Amortization Expense (d ) (f)
FERCFERC
LineAccount12/31/20_AccountGross-UpTotal
No.DescriptionNo. (a)Protected Unprotected Gross-Up (h)_ BalanceProtectedUnprotectedNo. (f)ProtectedUnprotected(h)Amortization
Project -related (Excess)/Deficient ADIT - Tax Rate Changes
1a
----
1 [ ](b)
----
2Total (Sum Lines1a thru 1 [ ] ) (c)-
-------
Notes:
(a) The affected ADIT accounts were remeasured by comparing Project Specific ADIT on cumulative temporary differences for each item in accounts 190, 282, and 283 at the current Federal, State & Local Income Tax rate to Project Specific
ADIT balances at historical Federal, State & Local Income Tax rates. The difference between the two represents the excess or deficient ADIT recorded to Account 254 or Account 182.3, respectively. Amounts reflected on this schedule are
a subset of total Transmission Related (Excess) Deficient ADIT shown on Schedule 14. Refer to Schedule 14 for the reconciliation of Total Transmission Related (Excess) Deficient ADIT to FF1 Page 232 for Account 182.3 and FF1 Page
278 for Account 254.
(b)Niagara Mohawk Power Corporation may add or remove sublines and notes explaining them without a FPA Section 205 filing.
(c)Total equals the sum of sublines a through [ ], where [ ] is the last subline denoted by a letter.
(d)Enter credit balances as negatives.
(e)Deficient/(excess) ADIT balances will be amortized as follows: "Protected property-related" = ARAM, "unprotected property-related" = 31 yrs, all other unprotected deficient/(excess) ADIT balances = 10 yrs.
(f)Deficient ADIT is amortized to Account 410.1; Excess ADIT is amortized to Account 411.1.
(g)Other changes to (excess)/deficient ADIT due to the conclusion of IRS audits during applicable periods affected by a change in federal, state or local tax rates, the establishment of new (excess)/deficient ADIT due to future tax rate changes
and classification changes between protected and unprotected categories due to the passage of time.
(h)Tax gross up calculated using the Composite Tax Rate / (1 - Composite Tax Rate) in effect for the applicable period.
(i)Niagara Mohawk Power Company will add footnotes below to identify excess or deficient ADIT from future Federal, State and
Local income tax rate changes.
(j) [ ]
Effective Date: 4/1/2023 - Docket #: ER23-973-002 - Page 1
NYISO Tariffs --> Open Access Transmission Tariff (OATT) --> 14 OATT Attachment H - Annual Transmission Revenue Requireme --> 14.2-14.2.1 OATT Att H Attachment 1 to Attachment H
Niagara Mohawk Power CorporationAttachment 1
Smart Path Connect Cost Containment AdjustmentSchedule 15e
Under the cost containment mechanism for the Smart Path Connect (“SPC”) project (“SPC Project” or “Project”), where “Eligible Project Costs” exceed the “Cost Cap,” NMPC will earn no ROE on 20% of the equity portion of the actual costs that exceed the Cost Cap. NMPC will remain eligible to recover the depreciation and debt costs on its share of all actual Project-related costs.
The Cost Cap for the SPC Project is $481.8 million.
Eligible Project Costs are defined as all capital costs incurred to develop, construct, and place the SPC Project into service, excluding “Third Party Costs” and “Unforeseeable Costs” in excess of 2.5% of the Cost Cap.
Third Party Costs include: (i) interconnection and network upgrade costs resulting from the ISO evaluation process; (ii) property taxes; and (iii) any increased costs, i.e., costs incurred related to the rescheduling of outages or to the relocation of utility assets, which are beyond the ability of NMPC to control or mitigate.
Unforeseeable Costs are defined in terms of costs that NMPC could not have reasonably anticipated at the time the estimate was submitted to the NYPSC as part of the Article VII application process. Unforeseeable Costs include the following:
UC 1 - Costs associated with material modifications to the routing or scope of work of the Project that results from a NYPSC order, negotiation, or settlement agreement within the siting process, or are imposed or required by any other governmental
agency. For the avoidance of doubt, foreseeable obligations, as included in NMPC’s Article VII Application to the New York Public Service Commission for the SPC Project, or non-material obligations imposed upon NMPC as a normal part of the siting process, shall not be deemed to be Unforeseeable Costs
UC 2 - Costs associated with changes in applicable laws and regulations, or interpretations thereof by governmental agencies UC 3 - Costs incurred as a result of orders of courts or action, or inaction, by governmental agencies;
UC 4 - Costs related to destruction, damage, interruption, suspension, or interference of or with the Project caused by landslides, lightning, earthquakes, hurricanes, tornadoes, severe weather, fires, explosions, floods, epidemics, pandemics, acts of public enemy, acts of terrorism, wars, blockades, riots, rebellions, sabotage, insurrections, environmental contamination or damage, or strike or otherwise unavailability of skilled labor, provided that (i) the cause was not reasonably within the control of NMPC, (ii) NMPC made reasonable efforts to avoid or minimize the adverse impacts of any of the above-listed events, and (iii) NMPC took reasonable steps to expeditiously resolve the event after it occurred;
UC 5 - Steel cost escalation that is greater than the “Handy Whitman Construction Cost Index” applied to steel costs in determining the Cost Cap; and
UC 6 - Total actual Project cost escalation, excluding steel costs, that are greater than 150% of the Handy Whitman Construction Cost Index applied to non-steel costs in determining the Cost Cap.
Line No.AmountSourceDefinitions
1Cost Cap481,800,000As defined in Docket _____________
Eligible Project Costs
2Total Capital Costs-Schedule 15a Line 1
3Less: Third Party Costs (enter credit)
4Interconnection and network upgrade costs resulting from the ISO evaluation processInternal Records
5Property taxesInternal Records
Any increased costs, i.e., costs incurred related to the rescheduling of outages or to the
6relocation of utility assets, which are beyond the ability of NMPC to control or mitigateInternal Records
7Total Third Party Costs-Sum lines 4 to 6
Only Unforeseeable Costs that exceed 2.5% of the Cost Cap will be excluded from Eligible
8Less: Unforeseeable Costs (enter credit)Project Costs, exempted from application of the Cost Cap, and recovered under the SPC-FC.
9UC 1Internal Records
10UC 2Internal Records
11UC 3Internal Records
12UC 4Internal Records
13UC 5Internal Records
14UC 6Internal Records
15Total Unforeseeable Costs-Sum lines 9 to 14
16Total Eligible Project Costs-Line 2 + Line 7 + Line 15
17Amount in excess (below) Cost CapLine 16 less Line 1
18% eligible for ROE reduction20%As defined in Docket _____________
19Equity Return PortionSchedule 15b Line 6 (e)
20FITSchedule 15b Line 12 (a)
21SITSchedule 15b Line 16 (a)
22Total Base Cost of Capital AdjustmentSum lines 19 to Line 21
23Cost Containment AdjustmentIf line 17 > 0 then -line 17* line 18* line 22
Effective Date: 4/1/2023 - Docket #: ER23-973-002 - Page 1
