6.10.8 Attachment 2 – Rate Mechanism for the Recovery of NYPA Portion of Segment A of the AC Transmission Public Policy Transmission Need RTFC Projects

6.10.8.1 Applicability

This Attachment 2 to Rate Schedule 10 of the ISO OATT establishes the RTFC for the recovery of costs for theprojects undertaken by NYPA portion of Segment A of the AC Transmission Public Policy Transmission Need projects that are eligible for cost recovery pursuant to Rate Schedule 10(“Project”).  The Pprojects subject to this Attachment 2 to Rate Schedule 10 of the ISO OATT are as follows:

• NYPA’s portion of Segment A of the AC Transmission Public Policy Transmission Need was selected by the ISO Board of Directors as identified in a decision and Public Policy Transmission Planning Report issued April 8, 2019 (i.e., the Project was identified therein as “Project T027”).
• NYPA’s portion of the Propel New York Energy Project selected by the ISO Board of Directors as identified in a decision and Long Island Offshore Wind Export Public Policy Transmission Plan dated June 13, 2023 (and identified therein as “Propel NY’s T051 Alternate 5 Project”).  

NYPA (“Project Developer”) may recover eligible costs for the Project in accordance with the requirements of Rate Schedule 10 of the ISO OATT.  For purposes of Rate Schedule 10 of the ISO OATT: (i) the each Pproject identified above shall constitute thean applicable “Eligible Project”; and (ii) Project DeveloperNYPA shall constitute the applicable “Transmission Owner” to recover costs for theeach such Pproject through the RTFC.

6.10.8.2 Project Revenue Requirement

For purposes of Rate Schedule 10 of the ISO OATT, the revenue requirement for theeach Eligible Project shall be determined using the Formula Rate Template and Formula Rate Implementation Protocols included in Section 14.2.3 of Attachment H of the ISO OATT.  The Project’s revenue requirement for each Eligible Project shall be stated separately on within a component of line 11b of the NYPA Formula Rate Template’s “Transmission Revenue Requirement Summary,” and there shall be no duplicative recovery of costs as between the Project revenue requirement, the NTAC revenue requirement or any other NYPA project-specific revenue requirement recovered through the ISO OATT.

6.10.8.3 Project Cost Allocation

 The costs of the each Eligible Project eligible for recovery pursuant to Rate Schedule 10 of the ISO OATT shall be allocated to Responsible LSEs as follows:

• For NYPA’s portion of Segment A of the AC Transmission Public Policy Transmission Need, eligible costs shall be allocated in accordance with Section 31.8.2 of Appendix E of Attachment Y to the ISO OATT.
• For NYPA’s portion of the Propel New York Energy Project, eligible costs shall be allocated in accordance with Section 31.5.5.4.3 of Attachment Y to the ISO OATT, calculated volumetrically based on Actual Energy Withdrawals by all Load Serving Entities, but excluding Withdrawal Billing Units for Exports and Wheels Through.