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SERVICE AGREEMENT NO. 2734
SERVICE AGREEMENT NO. 2734
AMENDED AND RESTATED
TRANSMISSION PROJECT
INTERCONNECTION AGREEMENT
AMONG THE
NEW YORK INDEPENDENT SYSTEM OPERATOR, INC.
AND
CONSOLIDATED EDISON COMPANY OF NEW YORK, INC.
AND
NEW YORK TRANSCO, LLC
Dated as of August 2, 2024
(Dover PAR Substation for
New York Energy Solution Segment B Transmission Project)
SERVICE AGREEMENT NO. 2734
TABLE OF CONTENTS
Page Number
ARTICLE 1. DEFINITIONS.........................................................................................................2
ARTICLE 2. EFFECTIVE DATE, TERM AND TERMINATION .............................................8
Effective Date..................................................................................................... 8
Term of Agreement............................................................................................ 8
Termination........................................................................................................ 8
Termination Costs............................................................................................ 10
Disconnection................................................................................................... 11
Survival. ........................................................................................................... 11
ARTICLE 3. REGULATORY FILINGS....................................................................................11
ARTICLE 4. SCOPE OF SERVICE ...........................................................................................11
Interconnection of Transmission Facilities...................................................... 11
No Transmission Delivery Service. ................................................................. 12
No Other Services. ........................................................................................... 12
ARTICLE 5. NETWORK UPGRADE FACILITIES ENGINEERING, PROCUREMENT,
AND CONSTRUCTION...............................................................................................................12
Network Upgrade Facilities ............................................................................. 12
General Conditions Applicable to Network Upgrade Facilities Constructed by
Transmission Developer. .......................................................................................................... 12
Equipment Procurement................................................................................... 14
Construction Commencement.......................................................................... 14
Work Progress.................................................................................................. 14
Information Exchange...................................................................................... 15
Network Upgrade Facilities ............................................................................. 15
Access Rights................................................................................................... 15
Lands of Other Property Owners. .................................................................... 16
Permits. ............................................................................................................ 16
Suspension. ...................................................................................................... 16
Taxes. ............................................................................................................... 17
Tax Status; Non-Jurisdictional Entities............................................................ 22
Modification..................................................................................................... 22
ARTICLE 6. TESTING AND INSPECTION.............................................................................23
Pre-In-Service Date Testing and Modifications............................................... 23
Post-In-Service Date Testing and Modifications............................................. 23
Right to Observe Testing. ................................................................................ 23
Right to Inspect. ............................................................................................... 24
ARTICLE 7. METERING...........................................................................................................24
General............................................................................................................. 24
Check Meters. .................................................................................................. 24
Standards.......................................................................................................... 24
Testing of Metering Equipment. ...................................................................... 25
Metering Data................................................................................................... 25
ARTICLE 8. COMMUNICATIONS ..........................................................................................25
Transmission Developer Obligations............................................................... 25
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Remote Terminal Unit...................................................................................... 26
No Annexation. ................................................................................................ 26
ARTICLE 9. OPERATIONS.......................................................................................................26
General............................................................................................................. 26
NYISO and Connecting Transmission Owner Obligations. ............................ 26
Transmission Developer Obligations............................................................... 27
Outages and Interruptions. ............................................................................... 27
Switching and Tagging Rules. ......................................................................... 30
Disturbance Analysis Data Exchange. ............................................................. 30
ARTICLE 10. MAINTENANCE ..................................................................................................30
Connecting Transmission Owner Obligations. ................................................ 30
Transmission Developer Obligations............................................................... 30
Coordination..................................................................................................... 30
Secondary Systems. ......................................................................................... 30
Operating and Maintenance Expenses. ............................................................ 31
ARTICLE 11. PERFORMANCE OBLIGATION ........................................................................31
Transmission Project........................................................................................ 31
Network Upgrade Facilities. ............................................................................ 31
Special Provisions for Affected Systems. ........................................................ 31
Provision of Security........................................................................................ 31
Forfeiture of Security....................................................................................... 32
Network Upgrade Facility Costs...................................................................... 33
Line Outage Costs............................................................................................ 33
ARTICLE 12. INVOICE ...............................................................................................................33
General............................................................................................................. 33
Final Invoice and Refund of Remaining Security............................................ 34
Payment............................................................................................................ 34
Disputes............................................................................................................ 34
ARTICLE 13. EMERGENCIES....................................................................................................34
Obligations....................................................................................................... 34
Notice............................................................................................................... 35
Immediate Action............................................................................................. 35
NYISO, Transmission Developer, and Connecting Transmission Owner
Limited Liability. ............................................................................................. 35
ARTICLE 14. REGULATORY REQUIREMENTS AND GOVERNING LAW........................35
Regulatory Requirements................................................................................. 35
Governing Law................................................................................................. 36
ARTICLE 15. NOTICES...............................................................................................................36
General............................................................................................................. 36
Billings and Payments...................................................................................... 36
Alternative Forms of Notice. ........................................................................... 36
Operations and Maintenance Notice. ............................................................... 36
ARTICLE 16. FORCE MAJEURE ...............................................................................................37
ARTICLE 17. DEFAULT .............................................................................................................37
General............................................................................................................. 37
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Right to Terminate. .......................................................................................... 37
ARTICLE 18. INDEMNITY, CONSEQUENTIAL DAMAGES AND INSURANCE ...............37
Indemnity. ........................................................................................................ 37
No Consequential Damages............................................................................. 39
Insurance. ......................................................................................................... 39
ARTICLE 19. ASSIGNMENT......................................................................................................41
ARTICLE 20. SEVERABILITY...................................................................................................42
ARTICLE 21. COMPARABILITY...............................................................................................42
ARTICLE 22. CONFIDENTIALITY............................................................................................42
Confidentiality. ................................................................................................ 42
Term................................................................................................................. 42
Confidential Information.................................................................................. 42
Scope................................................................................................................ 43
Release of Confidential Information................................................................ 43
Rights. .............................................................................................................. 43
No Warranties. ................................................................................................. 43
Standard of Care............................................................................................... 44
Order of Disclosure.......................................................................................... 44
Termination of Agreement............................................................................... 44
Remedies.......................................................................................................... 44
Disclosure to FERC, its Staff, or a State.......................................................... 45
Required Notices Upon Requests or Demands for Confidential Information . 45
ARTICLE 23. TRANSMISSION DEVELOPER AND CONNECTING TRANSMISSION
OWNER NOTICES OF ENVIRONMENTAL RELEASES ........................................................45
ARTICLE 24. INFORMATION REQUIREMENT......................................................................46
Information Acquisition................................................................................... 46
Information Submission Concerning the Network Upgrade Facilities............ 46
Updated Information Submission Concerning the Transmission Project........ 46
Information Supplementation........................................................................... 47
ARTICLE 25. INFORMATION ACCESS AND AUDIT RIGHTS.............................................47
Information Access. ......................................................................................... 47
Reporting of Non-Force Majeure Events......................................................... 47
Audit Rights. .................................................................................................... 48
Audit Rights Periods. ....................................................................................... 48
Audit Results.................................................................................................... 48
ARTICLE 26. SUBCONTRACTORS ..........................................................................................48
General............................................................................................................. 48
Responsibility of Principal............................................................................... 49
No Limitation by Insurance. ............................................................................ 49
ARTICLE 27. DISPUTES.............................................................................................................49
Submission....................................................................................................... 49
External Arbitration Procedures....................................................................... 49
Arbitration Decisions. ...................................................................................... 50
Costs................................................................................................................. 50
Termination...................................................................................................... 50
ARTICLE 28. REPRESENTATIONS, WARRANTIES AND COVENANTS ...........................50
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General............................................................................................................. 50
ARTICLE 29. MISCELLANEOUS ..............................................................................................51
Binding Effect.................................................................................................. 51
Conflicts........................................................................................................... 51
Rules of Interpretation...................................................................................... 51
Compliance. ..................................................................................................... 52
Joint and Several Obligations. ......................................................................... 52
Entire Agreement. ............................................................................................ 52
No Third Party Beneficiaries. .......................................................................... 52
Waiver.............................................................................................................. 53
Headings........................................................................................................... 53
Multiple Counterparts. ..................................................................................... 53
Amendment...................................................................................................... 53
Modification by the Parties.............................................................................. 53
Reservation of Rights....................................................................................... 53
No Partnership.................................................................................................. 54
Other Transmission Rights............................................................................... 54
Appendices
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SERVICE AGREEMENT NO. 2734
AMENDED AND RESTATED TRANSMISSION PROJECT INTERCONNECTION
AGREEMENT
THIS AMENDED AND RESTATED TRANSMISSION PROJECT
INTERCONNECTION AGREEMENT (“Agreement”) is made and entered into this 2nd day
of August, 2024, by and among New York Transco, LLC, a limited liability company organized
and existing under the laws of the State of New York (“Transmission Developer” with a
Transmission Project), the New York Independent System Operator, Inc., a not-for-profit
corporation organized and existing under the laws of the State of New York (“NYISO”), and
Consolidated Edison Company of New York, Inc. a transportation corporation organized and
existing under the laws of the State of New York (“Connecting Transmission Owner”).
Transmission Developer, the NYISO, or Connecting Transmission Owner each may be referred
to as a “Party” or collectively referred to as the “Parties.”
RECITALS
WHEREAS, NYISO operates the New York State Transmission System, and Connecting
Transmission Owner owns certain facilities included in the New York State Transmission
System;
WHEREAS, Transmission Developer intends to construct, own, and operate a Transmission
Project described in Appendix C to this Agreement that will interconnect to the New York State
Transmission System;
WHEREAS, the NYISO selected the Transmission Project proposed by Transmission
Developer and Niagara Mohawk Power Corporation d/b/a National Grid (“National Grid”) as the
more efficient or cost effective transmission solution to address a Public Policy Transmission
Need in accordance with the NYISO’s Public Policy Transmission Planning Process located in
Attachment Y of the ISO OATT;
WHEREAS, Transmission Developer and National Grid entered into the Development
Agreement (as defined herein) with the NYISO for purposes of constructing the Transmission
Project and placing it in-service to satisfy the Public Policy Transmission Need;
WHEREAS, National Grid assigned its rights, duties, and obligations under the Development
Agreement to Transmission Developer on March 10, 2020, giving Transmission Developer sole
rights to the development of the Transmission Project;
WHEREAS, the Parties acknowledge that Connecting Transmission Owner is not a party to the
Development Agreement and is not bound by any of the terms or conditions contained therein;
WHEREAS, the Transmission Project was evaluated pursuant to the NYISO’s Transmission
Interconnection Procedures located in Attachment P of the ISO OATT;
WHEREAS, portions of the Transmission Project will interconnect to the New York State
Transmission System at several different facilities owned and operated by the Connecting
Transmission Owner;
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WHEREAS, Transmission Interconnection Studies determined that certain Network Upgrade
Facilities were required on the Connecting Transmission Owner’s and the Transmission
Developer’s systems for the Transmission Project to connect reliably to the systems in a manner
that meets the NYISO Transmission Interconnection Standard;
WHEREAS, the Parties agreed to enter into two separate Transmission Project Interconnection
Agreements to address the interconnection of the Transmission Project at different facilities
owned and operated by Connecting Transmission Owner, as described in Appendix A; and
WHEREAS, Transmission Developer, NYISO, and Connecting Transmission Owner have
agreed to enter into this Agreement for the purpose of interconnecting a certain portion of the
Transmission Project as specified in Appendix A with the Connecting Transmission Owner’s
Line 398 345 kV transmission line included in the New York State Transmission System and
constructing and placing in-service the Network Upgrade Facilities that will be owned and
operated by the Connecting Transmission Owner as specified in Appendix A;
NOW, THEREFORE, in consideration of and subject to the mutual covenants contained herein,
it is agreed:
ARTICLE 1. DEFINITIONS
Whenever used in this Agreement with initial capitalization, the following terms shall have the
meanings specified in this Article 1. Terms used in this Agreement with initial capitalization that
are not defined in this Article 1 shall have the meanings specified in Section 1 of the ISO OATT,
Section 22.1 of Attachment P of the ISO OATT, Section 25.1.2 of Attachment S of the ISO
OATT, the body of the Transmission Interconnection Procedures or the body of this Agreement.
Affected System shall mean an electric system other than the transmission system owned,
controlled or operated by the Connecting Transmission Owner that may be affected by the
proposed interconnection.
Affected System Operator shall mean the entity that operates an Affected System.
Affected Transmission Owner shall mean the New York public utility or authority (or its
designated agent) other than the Connecting Transmission Owner that (i) owns facilities used for
the transmission of Energy in interstate commerce and provides Transmission Service under the
Tariff, and (ii) owns, leases or otherwise possesses an interest in a portion of the New York State
Transmission System where System Deliverability Upgrades, System Upgrade Facilities, or
Network Upgrade Facilities are or will be installed pursuant to Attachment P, Attachment X,
Attachment Z, or Attachment S to the ISO OATT.
Affiliate shall mean, with respect to a person or entity, any individual, corporation, partnership,
firm, joint venture, association, joint-stock company, trust or unincorporated organization,
directly or indirectly controlling, controlled by, or under common control with, such person or
entity. The term “control” shall mean the possession, directly or indirectly, of the power to
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direct the management or policies of a person or an entity. A voting interest of ten percent or
more shall create a rebuttable presumption of control.
Applicable Laws and Regulations shall mean all duly promulgated applicable federal, state and
local laws, regulations, rules, ordinances, codes, decrees, judgments, directives, or judicial or
administrative orders, permits and other duly authorized actions of any Governmental Authority,
including but not limited to Environmental Law.
Applicable Reliability Councils shall mean the NERC, the NPCC and the NYSRC.
Applicable Reliability Standards shall mean the requirements and guidelines of the Applicable
Reliability Councils, and the Transmission District to which the Transmission Developer’s
Transmission Project is directly interconnected, as those requirements and guidelines are
amended and modified and in effect from time to time; provided that no Party shall waive its
right to challenge the applicability or validity of any requirement or guideline as applied to it in
the context of this Agreement.
Base Case shall mean the base case power flow, short circuit, and stability data bases used for
the Transmission Interconnection Studies by the NYISO, Connecting Transmission Owner, or
the Transmission Developer, as described in Section 22.6.1 of the Transmission Interconnection
Procedures.
Breach shall mean the failure of a Party to perform or observe any material term or condition of
this Agreement.
Breaching Party shall mean a Party that is in Breach of this Agreement.
Business Day shall mean Monday through Friday, excluding federal holidays.
Calendar Day shall mean any day including Saturday, Sunday or a federal holiday.
Confidential Information shall mean any information that is defined as confidential by Article
22 of this Agreement.
Connecting Transmission Owner shall mean the New York public utility or authority (or its
designated agent) that (i) owns facilities used for the transmission of Energy in interstate
commerce and provides Transmission Service under the Tariff, (ii) owns, leases or otherwise
possesses an interest in the portion of the New York State Transmission System or Distribution
System at the Point(s) of Interconnection, and (iii) is a Party to this Agreement. For purposes of
this Agreement, the Connecting Transmission Owner is defined in the introductory paragraph.
Control Area shall mean an electric power system or combination of electric power systems to
which a common automatic generation control scheme is applied in order to: (1) match, at all
times, the power output of the Generators within the electric power system(s) and capacity and
energy purchased from entities outside the electric power system(s), with the Load within the
electric power system(s); (2) maintain scheduled interchange with other Control Areas, within
the limits of Good Utility Practice; (3) maintain the frequency of the electric power system(s)
within reasonable limits in accordance with Good Utility Practice; and (4) provide sufficient
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generating capacity to maintain Operating Reserves in accordance with Good Utility Practice. A
Control Area must be certified by the NPCC.
Default shall mean the failure of a Party in Breach of this Agreement to cure such Breach in
Development Agreement shall mean the agreement executed between the NYISO,
Transmission Developer, and Niagara Mohawk Power Corporation d/b/a National Grid
concerning the development of the Transmission Project, dated January 10, 2020, and assigned
by National Grid to Transmission Developer on March 10, 2020, as it may be amended from
time to time.
Effective Date shall mean the date on which this Agreement becomes effective upon execution
by the Parties, subject to acceptance by the Commission, or if filed unexecuted, upon the date
specified by the Commission.
Emergency shall mean any abnormal condition or situation which the Connecting Transmission
Owner, Transmission Developer, or NYISO, in their sole discretion, deems imminently likely to
endanger life or property, or adversely affect or impair the New York State Transmission
System, Connecting Transmission Owner’s electrical system, the Transmission Project, or the
electrical or transmission systems of others to which they are directly or indirectly connected,
which requires immediate automatic or manual action to correct. Such an abnormal system
condition or situation includes, without limitation, overloading or potential overloading
(exceeding thermal limits of pre- and post-contingency), excessive voltage drop, exceeding
voltage limits as defined by the NYISO, Transmission Developer, or Connecting Transmission
Owner, load shedding, voltage reduction, operating reserve deficiencies, frequency deviations,
over-generation or other non-normal conditions. Economic hardship of a Party will not
constitute an “Emergency.”
Emergency State shall mean the condition or state that the New York State Power System is in
when an abnormal condition occurs that requires automatic or immediate manual action to
prevent or limit loss of the New York State Transmission System or Generators that could
adversely affect the reliability of the New York State Power System.
Environmental Law shall mean Applicable Laws and Regulations relating to pollution or
protection of the environment or natural resources.
Facilities Study shall mean the study conducted pursuant to Section 22.9 of Attachment P of the
ISO OATT to determine a list of facilities required to reliably interconnect the Transmission
Project (including Network Upgrade Facilities) as identified in the System Impact Study, the cost
of those facilities, and the time required to interconnect the Transmission Project with the New
York State Transmission System.
Facilities Study Agreement shall mean the agreement described in Section 22.9.1 of
Attachment P of the ISO OATT for conducting the Facilities Study.
Federal Power Act shall mean the Federal Power Act, as amended, 16 U.S.C. §§ 791a et seq.
(“FPA”).
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FERC shall mean the Federal Energy Regulatory Commission (“Commission”) or its successor.
Force Majeure shall mean any act of God, labor disturbance, act of the public enemy, war,
insurrection, riot, fire, storm or flood, explosion, breakage or accident to machinery or
equipment, any order, regulation or restriction imposed by governmental, military or lawfully
established civilian authorities, or any other cause beyond a Party’s control. A Force Majeure
event does not include acts of negligence or intentional wrongdoing by the Party claiming Force
Majeure.
Good Utility Practice shall mean any of the practices, methods and acts engaged in or approved
by a significant portion of the electric industry during the relevant time period, or any of the
practices, methods and acts which, in the exercise of reasonable judgment in light of the facts
known at the time the decision was made, could have been expected to accomplish the desired
result at a reasonable cost consistent with good business practices, reliability, safety and
expedition. Good Utility Practice is not intended to be limited to the optimum practice, method,
or act to the exclusion of all others, but rather to delineate acceptable practices, methods, or acts
generally accepted in the region.
Governmental Authority shall mean any federal, state, local or other governmental regulatory
or administrative agency, court, commission, department, board, or other governmental
subdivision, legislature, rulemaking board, tribunal, or other governmental authority having
jurisdiction over any of the Parties, their respective facilities, or the respective services they
provide, and exercising or entitled to exercise any administrative, executive, police, or taxing
authority or power; provided, however, that such term does not include Transmission Developer,
NYISO, Affected Transmission Owner, Connecting Transmission Owner, or any Affiliate
thereof.
Hazardous Substances shall mean any chemicals, materials or substances defined as or
included in the definition of “hazardous substances,” “hazardous wastes,” “hazardous materials,”
“hazardous constituents,” “restricted hazardous materials,” “extremely hazardous substances,”
“toxic substances,” “radioactive substances,” “contaminants,” “pollutants,” “toxic pollutants” or
words of similar meaning and regulatory effect under any applicable Environmental Law, or any
other chemical, material or substance, exposure to which is prohibited, limited or regulated by
any applicable Environmental Law.
Initial Synchronization Date(s) shall mean the date(s) upon which the Transmission Project and
Network Upgrade Facilities, as applicable, are initially synchronized with the New York State
Transmission System and upon which Trial Operation begins, which date(s) shall be set forth in
the milestones table in Appendix B. The Connecting Transmission Owner or Transmission
Developer, as applicable, must provide notice of the Initial Synchronization Date(s) to the other
Parties in the form of Appendix E-1 to this Agreement.
In-Service Date(s) shall mean the date(s) upon which the Transmission Project and Network
Upgrade Facilities, as applicable, are energized consistent with the provisions of this Agreement
and available to provide Transmission Service under the NYISO’s Tariffs, which date(s) shall be
set forth in the milestones table in Appendix B. The Connecting Transmission Owner or
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Transmission Developer, as applicable, must provide notice of the In-Service Date(s) to the other
Parties in the form of Appendix E-2 to this Agreement.
IRS shall mean the Internal Revenue Service.
Metering Equipment shall mean all metering equipment installed or to be installed at the
Transmission Project pursuant to this Agreement, including but not limited to instrument
transformers, MWh-meters, data acquisition equipment, transducers, remote terminal unit,
communications equipment, phone lines, and fiber optics.
Metering Points shall mean the location(s) identified by the NYISO for any Metering
Equipment associated with the Transmission Project that are required for the Transmission
Project to provide zonal or subzonal metering data.
NERC shall mean the North American Electric Reliability Council or its successor organization.
Network Upgrade Facilities shall mean the least costly configuration of commercially available
components of electrical equipment that can be used, consistent with Good Utility Practice and
Applicable Reliability Requirements, to make the modifications or additions to the New York
State Transmission System that are required for the proposed Transmission Project to connect
reliably to the system in a manner that meets the NYISO Transmission Interconnection Standard.
For purposes of this Agreement, the Network Upgrade Facilities are described in Appendix A of
this Agreement.
New York State Transmission System shall mean the entire New York State electric
transmission system, which includes (i) the Transmission Facilities Under ISO Operational
Control; (ii) the Transmission Facilities Requiring ISO Notification; and (iii) all remaining
transmission facilities within the New York Control Area.
Notice of Dispute shall mean a written notice of a dispute or claim that arises out of or in
connection with this Agreement or its performance.
NPCC shall mean the Northeast Power Coordinating Council or its successor organization.
NYISO Transmission Interconnection Standard shall mean the reliability standard that must
be met by any Transmission Project proposing to connect to the New York State Transmission
System. The standard is designed to ensure reliable access by the proposed project to the New
York State Transmission System.
NYSRC shall mean the New York State Reliability Council or its successor organization.
Operating Agreement shall mean the operating agreement for non-incumbent transmission
owners between the NYISO and Transmission Developer with Service Agreement No. 2271 of
the ISO OATT, with an effective date of May 23, 2016, as the agreement may be amended from
time to time.
Party or Parties shall mean NYISO, Connecting Transmission Owner, or Transmission
Developer or any combination of the above.
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Point(s) of Change of Ownership shall mean the point(s), as set forth in Appendix C to this
Agreement, where the Transmission Developer’s Transmission Project connects to the
Connecting Transmission Owner’s system.
Point(s) of Interconnection shall mean the point(s), as set forth in Appendix C to this
Agreement, where the Transmission Developer’s Transmission Project connects to the New
York State Transmission System.
Reasonable Efforts shall mean, with respect to an action required to be attempted or taken by a
Party under this Agreement, efforts that are timely and consistent with Good Utility Practice and
are otherwise substantially equivalent to those a Party would use to protect its own interests.
Security shall mean a bond, irrevocable letter of credit, parent company guarantee or other form
of security from an entity with an investment grade rating, executed for the benefit of the
Connecting Transmission Owner, meeting the commercially reasonable requirements of the
Connecting Transmission Owner with which it is required to be posted pursuant to Article 11.3,
and consistent with the Uniform Commercial Code of the jurisdiction identified in Article 14.2.1
of this Agreement.
Services Tariff shall mean the NYISO Market Administration and Control Area Tariff, as filed
with the Commission, and as amended or supplemented from time to time, or any successor tariff
thereto.
System Impact Study shall mean the study conducted pursuant to Section 22.8 of Attachment P
of the ISO OATT that evaluates the impact of the proposed Transmission Project on the safety
and reliability of the New York State Transmission System and, if applicable, and Affected
System, to determine what Network Upgrade Facilities are needed for the proposed
Transmission Project to connect reliably to the New York State Transmission System in a
manner that meets the NYISO Transmission Interconnection Standard.
System Impact Study Agreement shall mean the agreement described in Section 22.8.1 of
Attachment P of the ISO OATT for conducting the System Impact Study.
System Protection Facilities shall mean the equipment, including necessary protection signal
communications equipment, required to (1) protect the New York State Transmission System
from faults or other electrical disturbances occurring at the Transmission Project and (2) protect
the Transmission Project from faults or other electrical system disturbances occurring on the
New York State Transmission System or on other delivery systems or other generating systems
to which the New York State Transmission System is directly connected.
Tariff shall mean the NYISO Open Access Transmission Tariff (“OATT”), as filed with the
Commission, and as amended or supplemented from time to time, or any successor tariff.
Transmission Developer shall mean an entity that proposes to interconnect its Transmission
Project to the New York State Transmission System in compliance with the NYISO
Transmission Interconnection Standard. For purposes of this Agreement, the Transmission
Developer is defined in the introductory paragraph.
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Transmission Interconnection Application shall mean the Transmission Developer’s request,
in the form of Appendix 1 to the Transmission Interconnection Procedures, to interconnect a
Transmission Project to the New York State Transmission System.
Transmission Interconnection Procedures (“TIP”) shall mean the interconnection procedures
applicable to a Transmission Interconnection Application pertaining to a Transmission Project
that are included in Attachment P of the ISO OATT.
Transmission Interconnection Study shall mean any of the following studies: the Optional
Feasibility Study, the System Impact Study, and the Facilities Study described in the
Transmission Interconnection Procedures.
Transmission Project shall mean the Transmission Developer’s proposed transmission facility
or facilities that collectively satisfy the definition of Transmission Project in Section 22.3.1 of
Attachment P of the ISO OATT. For purposes of this Agreement, the Transmission Project is
described in Appendix C of this Agreement.
Transmission Project Interconnection Agreement shall mean this interconnection agreement
applicable to the interconnection of the Transmission Project to the New York State
Transmission System.
Trial Operation shall mean the period(s) during which Connecting Transmission Owner or
Transmission Developer, as applicable, is engaged in on-site test operations and commissioning
of the Transmission Project or Network Upgrade Facilities prior to the In-Service Date.
ARTICLE 2. EFFECTIVE DATE, TERM AND TERMINATION
Effective Date.
This Agreement shall become effective upon execution by the Parties, subject to
acceptance by FERC, or if filed unexecuted, upon the date specified by FERC. The NYISO and
Connecting Transmission Owner shall promptly file this Agreement with FERC upon execution
in accordance with Article 3.
Term of Agreement.
Subject to the provisions of Article 2.3, this Agreement shall remain in effect for a period
of forty (40) years from the Effective Date and shall be automatically renewed for each
successive one-year period thereafter.
Termination.
2.3.1 Written Notice.
2.3.1.1
Written Notice of Termination
This Agreement may be terminated: (i) by any Party after giving the other Parties ninety
(90) Calendar Days advance written notice following the termination of the Development
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Agreement prior to the completion of its term, subject to the suspension requirements in
Article 2.3.1.2 below; or (ii) by the mutual agreement in writing of all Parties.
2.3.1.2
Suspension Period for Project Transfer
2.3.1.2.1 If the Development Agreement is terminated prior to the completion of its
term and the NYISO exercises its right under the Development Agreement and the Tariff to
request that a developer other than the Transmission Developer complete the Transmission
Project, this Agreement shall be suspended. The suspension period will last until either: (i) the
NYISO issues a written determination that the Transmission Project cannot be transferred to
another developer and will not proceed, or (ii) the Transmission Developer completes the
assignment of this Agreement to a new developer selected by the NYISO as set forth in
Article 2.3.1.2.3. During the suspension period, the running of any advanced notice of
termination time period pursuant to Article 2.3.1.1 will be paused. The Agreement shall not be
terminated during the suspension period without the written agreement of all Parties.
2.3.1.2.2 During the suspension period, the Transmission Developer and
Connecting Transmission Owner shall suspend all work associated with the construction and
installation of the Network Upgrade Facilities required for only that Transmission Developer
under this Agreement with the condition that the New York State Transmission System shall be
left in a safe and reliable condition in accordance with Good Utility Practice and the safety and
reliability criteria of Connecting Transmission Owner and NYISO. In such event, Transmission
Developer shall be responsible for all reasonable and necessary costs and/or obligations in
accordance with this Agreement, including those which Connecting Transmission Owner (i) has
incurred pursuant to this Agreement prior to the suspension and (ii) incurs in suspending such
work, including any costs incurred to perform such work as may be necessary to ensure the
safety of persons and property and the integrity of the New York State Transmission System
during such suspension and, if applicable, any costs incurred in connection with the cancellation
or suspension of material, equipment and labor contracts which Connecting Transmission Owner
cannot reasonably avoid; provided, however, that prior to canceling or suspending any such
material, equipment or labor contract, Connecting Transmission Owner shall obtain
Transmission Developer’s authorization to do so, which authorization shall not unreasonably be
withheld, conditioned or delayed.
2.3.1.2.3 If, pursuant to its Tariff, the NYISO selects a new developer to complete
the Transmission Project, Transmission Developer shall coordinate with the new developer
concerning the assignment of this Agreement to the new developer pursuant to the assignment
requirements in Article 19 of this Agreement. All liabilities under this Agreement existing prior
to such transfer shall remain with the Transmission Developer, unless otherwise agreed upon by
the Transmission Developer and the new developer as part of their good faith negotiations
regarding the transfer.
2.3.2 Default.
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2.3.3 Compliance.
Notwithstanding Articles 2.3.1 and 2.3.2, no termination of this Agreement shall become
effective until the Parties have complied with all Applicable Laws and Regulations applicable to
such termination, including the filing with FERC of a notice of termination of this Agreement,
which notice has been accepted for filing by FERC.
Termination Costs.
If a Party elects to terminate this Agreement pursuant to Article 2.3.1 above, the
Transmission Developer shall be responsible for all costs that are the responsibility of the
Transmission Developer under this Agreement that are incurred by the Transmission Developer
or the other Parties through the date, as applicable, of the other Parties’ receipt of a Party’s notice
of termination or of the Parties’ mutual agreement to terminate the agreement. Such costs
include any cancellation costs relating to orders or contracts. In the event of termination by the
Transmission Developer, all Parties shall use commercially Reasonable Efforts to mitigate the
costs, damages and charges arising as a consequence of termination. Upon termination of this
Agreement, unless otherwise ordered or approved by FERC:
2.4.1 With respect to any portion of the Network Upgrade Facilities that have not yet
been constructed or installed, but that is being relied upon by other projects in the manner
described in Article 11.5 of this Agreement, Transmission Developer shall forfeit any remaining
Security in accordance with the requirements in Article 11.5.
2.4.2 With respect to any portion of the Network Upgrade Facilities that has not yet
been constructed or installed and is not being relied upon by other projects in the manner
described in Article 11.5 of this Agreement, the Connecting Transmission Owner shall to the
extent possible and with Transmission Developer’s authorization and the consent of the NYISO
cancel any pending orders of, or return, any materials or equipment for, or contracts for
construction of, such facilities; provided that in the event Transmission Developer elects not to
authorize such cancellation, Transmission Developer shall assume all payment obligations with
respect to such materials, equipment, and contracts, and the Connecting Transmission Owner
shall deliver such material and equipment, and, if necessary, assign such contracts, to
Transmission Developer as soon as practicable, at Transmission Developer’s expense. To the
extent that Transmission Developer has already paid Connecting Transmission Owner for any or
all such costs of materials or equipment not taken by Transmission Developer, Connecting
Transmission Owner shall promptly refund such amounts to Transmission Developer, less any
costs, including penalties incurred by the Connecting Transmission Owner to cancel any pending
orders of or return such materials, equipment, or contracts.
2.4.3 Connecting Transmission Owner may, at its option, retain any portion of such
materials, equipment, or facilities that Transmission Developer chooses not to accept delivery of,
in which case Connecting Transmission Owner shall be responsible for all costs associated with
procuring such materials, equipment, or facilities.
2.4.4 With respect to any portion of the Network Upgrade Facilities, and any other
facilities already installed or constructed pursuant to the terms of this Agreement, Transmission
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Developer shall be responsible for all costs associated with the removal, relocation or other
disposition or retirement of such materials, equipment, or facilities.
Disconnection.
Upon termination of this Agreement, Transmission Developer and Connecting
Transmission Owner will take all appropriate steps to disconnect the Transmission Developer’s
Transmission Project from the New York State Transmission System and to perform such work
as may be necessary to ensure that the New York State Transmission System shall be left in a
safe and reliable condition in accordance with Good Utility Practice and the safety and reliability
criteria of Connecting Transmission Owner and NYISO. All costs required to effectuate such
disconnection shall be borne by the Transmission Developer, unless such termination resulted
from the Connecting Transmission Owner’s Default of this Agreement.
Survival.
This Agreement shall continue in effect after termination to the extent necessary to
provide for final billings and payments and for costs incurred hereunder; including billings and
payments pursuant to this Agreement and Transmission Developer’s satisfaction of the Security
requirements in Article 11.5; to permit the determination and enforcement of liability and
indemnification obligations arising from acts or events that occurred while this Agreement was
in effect; and to permit Transmission Developer and Connecting Transmission Owner each to
have access to the lands of the other pursuant to this Agreement or other applicable agreements,
to disconnect, remove or salvage its own facilities and equipment.
ARTICLE 3. REGULATORY FILINGS
NYISO and Connecting Transmission Owner shall file this Agreement (and any
amendment hereto) with the appropriate Governmental Authority, if required. Any information
related to studies for interconnection asserted by Transmission Developer to contain Confidential
Information shall be treated in accordance with Article 22 of this Agreement and Attachment F
to the ISO OATT. If the Transmission Developer has executed this Agreement, or any
amendment thereto, the Transmission Developer shall reasonably cooperate with NYISO and
Connecting Transmission Owner with respect to such filing and to provide any information
reasonably requested by NYISO and Connecting Transmission Owner needed to comply with
Applicable Laws and Regulations.
ARTICLE 4. SCOPE OF SERVICE
Interconnection of Transmission Facilities.
The Transmission Developer’s Transmission Project and the Connecting Transmission
Owner’s transmission system shall interconnect at the Points of Interconnection set forth in
Appendix C of this Agreement in accordance with the terms and conditions of this Agreement.
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SERVICE AGREEMENT NO. 2734
No Transmission Delivery Service.
The execution of this Agreement does not constitute a request for, nor agreement to
provide, any Transmission Service under the ISO OATT, and does not convey any right to
deliver electricity to any specific customer or Point of Delivery.
No Other Services.
The execution of this Agreement does not constitute a request for, nor agreement to
provide Energy, any Ancillary Services or Installed Capacity under the NYISO Market
Administration and Control Area Services Tariff (“Services Tariff”).
ARTICLE 5. NETWORK UPGRADE FACILITIES ENGINEERING,
PROCUREMENT, AND CONSTRUCTION
Network Upgrade Facilities
Unless otherwise mutually agreed to by Transmission Developer and Connecting
Transmission Owner, Transmission Developer shall select the In-Service Date and Initial
Synchronization Date of the Network Upgrade Facilities, and such dates shall be set forth in
Appendix B hereto. The Connecting Transmission Owner’s and Transmission Developer’s
respective obligations to design, procure, construct, install, and own the Network Upgrade
Facilities, as applicable, shall be set forth in Appendix A hereto. The Connecting Transmission
Owner and Transmission Developer shall each use Reasonable Efforts to complete the Network
Upgrade Facilities for which it has construction responsibility by the dates set forth in Appendix
B hereto. The Connecting Transmission Owner shall not be required to undertake any action
which is inconsistent with its standard safety practices, its material and equipment specifications,
its design criteria and construction procedures, its labor agreements, and Applicable Laws and
Regulations. In the event the Connecting Transmission Owner reasonably expects that it will not
be able to complete the Network Upgrade Facilities for which it has construction responsibility,
by the specified dates, the Connecting Transmission Owner shall promptly provide written notice
to the Transmission Developer and NYISO, and shall undertake Reasonable Efforts to meet the
earliest dates thereafter.
General Conditions Applicable to Network Upgrade Facilities
Constructed by Transmission Developer.
Where Transmission Developer has assumed responsibility for the design, procurement
and/or construction of the Network Upgrade Facilities as set forth in Appendix A, the following
conditions apply:
5.2.1 Transmission Developer shall engineer, procure equipment, and/or construct the
Network Upgrade Facilities (or portions thereof) using Good Utility Practice and using standards
and specifications provided in advance by the Connecting Transmission Owner;
5.2.2 Transmission Developer’s engineering, procurement and/or construction of the
Network Upgrade Facilities shall comply with all requirements of law to which Connecting
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Transmission Owner would be subject in the engineering, procurement or construction of the
Network Upgrade Facilities.
5.2.3 Connecting Transmission Owner shall review and approve the engineering
design, equipment acceptance tests, and the construction of the Network Upgrade Facilities;
5.2.4 Prior to commencement of construction, Transmission Developer shall provide to
Connecting Transmission Owner and NYISO a schedule for construction of the Network
Upgrade Facilities, and shall promptly respond to requests for information from Connecting
Transmission Owner or NYISO;
5.2.5 At any time during construction, Connecting Transmission Owner shall have the
right to gain unrestricted access to the Network Upgrade Facilities and to conduct inspections of
the same;
5.2.6 At any time during construction, should any phase of the engineering, equipment
procurement, or construction of the Network Upgrade Facilities not meet the standards and
specifications provided by Connecting Transmission Owner, the Transmission Developer shall
be obligated to remedy deficiencies in that portion of the Network Upgrade Facilities;
5.2.7 Transmission Developer shall indemnify Connecting Transmission Owner and
NYISO for claims arising from the Transmission Developer’s construction of Network Upgrade
Facilities under procedures applicable to Article 18.1 Indemnity;
5.2.8 Transmission Developer shall transfer control of Network Upgrade Facilities to
the Connecting Transmission Owner as set forth in Appendix A hereto;
5.2.9 Transmission Developer shall transfer ownership of the Network Upgrade
Facilities to Connecting Transmission Owner as set forth in Appendix A hereto;
5.2.10 Connecting Transmission Owner shall approve and accept for operation and
maintenance the Network Upgrade Facilities to the extent engineered, procured, and constructed
in accordance with this Article 5.2;
5.2.11 Transmission Developer shall deliver to NYISO and Connecting Transmission
Owner “as built” drawings, information, and any other documents that are reasonably required
by NYISO or Connecting Transmission Owner to assure that the Network Upgrade Facilities are
built to the standards and specifications required by Connecting Transmission Owner; and
5.2.12 The Transmission Developer shall be responsible for the costs that Connecting
Transmission Owner incurs in executing the responsibilities enumerated to Connecting
Transmission Owner under Article 5.2. The Connecting Transmission Owner shall invoice
Transmission Developer for such costs pursuant to Article 12.
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Equipment Procurement.
The Connecting Transmission Owner shall commence design of the Network Upgrade
Facilities for which it has construction responsibility and procure necessary equipment as soon as
practicable after all of the following conditions are satisfied, unless the Transmission Developer
and Connecting Transmission Owner otherwise agree in writing:
5.3.1 NYISO and Connecting Transmission Owner have completed the Facilities Study
pursuant to the Facilities Study Agreement;
5.3.2 The NYISO has completed the required cost allocation analyses, and
Transmission Developer has provided Security to the Connecting Transmission Owner in
accordance with Article 11.3 by the date specified in Appendix B hereto; and
5.3.3 The Connecting Transmission Owner has received written authorization to
proceed with design and procurement from the Transmission Developer by the date specified in
Appendix B hereto.
Construction Commencement.
The Connecting Transmission Owner shall commence construction of the Network
Upgrade Facilities for which it has construction responsibility as set forth in Appendix A as soon
as practicable after the following additional conditions are satisfied:
5.4.1 Approval of the appropriate Governmental Authority has been obtained for any
facilities requiring regulatory approval;
5.4.2 Necessary real property rights and rights-of-way have been obtained by the
Transmission Developer, to the extent required for the construction of a discrete aspect of the
Network Upgrade Facilities; and
5.4.3 The Connecting Transmission Owner has received written authorization to
proceed with construction from the Transmission Developer by the date specified in Appendix B
hereto; and
5.4.4 The Transmission Developer has provided Security to the Connecting
Transmission Owner in accordance with Article 11.4 by the dates specified in Appendix B
hereto.
Work Progress.
The Transmission Developer and Connecting Transmission Owner will keep each other
and the NYISO advised periodically as to the progress of their respective design, procurement
and construction efforts of the Transmission Project and the Network Upgrade Facilities. Any
Party may, at any time, request a progress report from the Transmission Developer or
Connecting Transmission Owner.
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Information Exchange.
As soon as reasonably practicable after the Effective Date, the Transmission Developer
and Connecting Transmission Owner shall exchange information, and provide NYISO the same
information, regarding the design and compatibility of the Transmission Project and Network
Upgrade Facilities and the compatibility of the Transmission Project and Network Upgrade
Facilities with the New York State Transmission System, and shall work diligently and in good
faith to make any necessary design changes.
Network Upgrade Facilities
Transmission Developer shall submit initial specifications for the Network Upgrade
Facilities for which it is responsible pursuant to Appendix A to Connecting Transmission Owner
and NYISO at least one hundred eighty (180) Calendar Days prior to the Initial Synchronization
Date; and final specifications for review and comment at least ninety (90) Calendar Days prior to
the Initial Synchronization Date. Connecting Transmission Owner and NYISO shall review
such specifications to ensure that the Network Upgrade Facilities are compatible with the
technical specifications, operational control, and safety requirements of the Connecting
Transmission Owner and NYISO and comment on such specifications within thirty (30)
Calendar Days of Transmission Developer’s submission. All specifications provided hereunder
shall be deemed to be Confidential Information.
The review of Transmission Developer’s final specifications by Connecting Transmission
Owner and NYISO shall not be construed as confirming, endorsing, or providing a warranty as
to the design, fitness, safety, durability or reliability of the Transmission Project or Network
Upgrade Facilities. Transmission Developer shall make such changes to the Network Upgrade
Facilities as may reasonably be required by Connecting Transmission Owner or NYISO, in
accordance with Good Utility Practice, to ensure that the Network Upgrade Facilities are
compatible with the technical specifications, operational control, and safety requirements of the
Connecting Transmission Owner and NYISO.
Transmission Developer and Connecting Transmission Owner shall design and construct
the Network Upgrade Facilities for which each is responsible pursuant to Appendix A in
accordance with Good Utility Practice and the Connecting Transmission Owner’s standards and
specifications. Transmission Developer and Connecting Transmission Owner shall each deliver
to the other Parties pursuant to the dates set forth in Appendix B “as-built” drawings, information
and documents for the Network Upgrade Facilities.
The Connecting Transmission Owner shall transfer operational control of Network
Upgrade Facilities at a voltage of 230 kV or greater upon completion of such facilities, but shall
not transfer operational control of Network Upgrade Facilities of a voltage of less than 230 kV.
Access Rights.
Upon reasonable notice and supervision by a Granting Party, and subject to any required
or necessary regulatory approvals, the Connecting Transmission Owner and Transmission
Developer (each a “Granting Party”) shall each furnish to the other Parties (“Access Party”) at no
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cost any rights of use, licenses, rights of way and easements with respect to lands owned or
controlled by the Granting Party, its agents (if allowed under the applicable agency agreement),
or any Affiliate, that are necessary to enable the Access Party to obtain ingress and egress at the
Point(s) of Interconnection, or any other necessary point to construct, operate, maintain, repair,
test (or witness testing), inspect, replace or remove facilities and equipment to: (i) interconnect
the Transmission Project and Network Upgrade Facilities with the New York State Transmission
System; (ii) operate and maintain the Transmission Project, Network Upgrade Facilities, and the
New York State Transmission System; and (iii) disconnect or remove the Access Party’s
facilities and equipment upon termination of this Agreement. In exercising such licenses, rights
of way and easements, the Access Party shall not unreasonably disrupt or interfere with normal
operation of the Granting Party’s business and shall adhere to the safety rules and procedures
established in advance, as may be changed from time to time, by the Granting Party and provided
to the Access Party. The Access Party shall indemnify the Granting Party against all claims of
injury or damage from third parties resulting from the exercise of the access rights provided for
herein.
Lands of Other Property Owners.
If any part of the Network Upgrade Facilities is to be installed on property owned by
persons other than Transmission Developer or Connecting Transmission Owner, the Connecting
Transmission Owner shall at Transmission Developer’s expense use efforts, similar in nature and
extent to those that it typically undertakes for its own or affiliated generation, including use of its
eminent domain authority, and to the extent consistent with state law, to procure from such
persons any rights of use, licenses, rights of way and easements that are necessary to construct,
operate, maintain, test, inspect, replace or remove the Network Upgrade Facilities upon such
property.
Permits.
NYISO, Connecting Transmission Owner and the Transmission Developer shall
cooperate with each other in good faith in obtaining all permits, licenses and authorizations that
are necessary to accomplish the interconnection in compliance with Applicable Laws and
Regulations. With respect to this paragraph, Connecting Transmission Owner shall provide
permitting assistance to the Transmission Developer comparable to that provided to the
Connecting Transmission Owner’s own, or an Affiliate’s, generation or transmission facilities, if
any.
Suspension.
Transmission Developer reserves the right, upon written notice to Connecting
Transmission Owner and NYISO, to suspend at any time all work by Transmission Developer
and Connecting Transmission Owner associated with the construction and installation of the
Network Upgrade Facilities required for only that Transmission Developer under this Agreement
with the condition that the New York State Transmission System shall be left in a safe and
reliable condition in accordance with Good Utility Practice and the safety and reliability criteria
of Connecting Transmission Owner and NYISO. If the suspension will impact the Transmission
Developer’s ability to meet any Advisory Milestones or Critical Path Milestones in the
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Development Agreement, Transmission Developer shall notify the NYISO in accordance with
the requirements in Article 3.3 of the Development Agreement. NYISO reserves the right, upon
written notice to Transmission Developer and Connecting Transmission Owner, to require the
suspension of all work by Transmission Developer and Connecting Transmission Owner
associated with the engineering, procurement, and/or construction services under this Agreement
if the NYISO terminates the Development Agreement pursuant to Article 8 of the Development
Agreement.
In the event of suspension under this Article 5.11, Transmission Developer shall be
responsible for all reasonable and necessary costs and/or obligations in accordance with the ISO
OATT and the Facilities Study report including those which Connecting Transmission Owner
(i) has incurred pursuant to this Agreement prior to the suspension and (ii) incurs in suspending
such work, including any costs incurred to perform such work as may be necessary to ensure the
safety of persons and property and the integrity of the New York State Transmission System
during such suspension and, if applicable, any costs incurred in connection with the cancellation
or suspension of material, equipment and labor contracts which Connecting Transmission Owner
cannot reasonably avoid; provided, however, that prior to canceling or suspending any such
material, equipment or labor contract, Connecting Transmission Owner shall obtain
Transmission Developer’s authorization to do so.
Connecting Transmission Owner shall invoice Transmission Developer for such costs
pursuant to Article 12 and shall use due diligence to minimize its costs. In the event
Transmission Developer suspends work by the Transmission Developer and Connecting
Transmission Owner required under this Agreement pursuant to this Article 5.11, and has not
informed the Parties that it is recommencing its work and requested Connecting Transmission
Owner to recommence its work required under this Agreement on or before the expiration of
three (3) years following commencement of such suspension, this Agreement shall be deemed
terminated. The three-year period shall begin on the date of the written notice required under
this Article 5.11 or the date specified in the written notice of suspension.
Taxes.
5.12.1 Developer Payments Not Taxable.
The Transmission Developer and Connecting Transmission Owner intend that all
payments or property transfers made by Transmission Developer to Connecting Transmission
Owner for the installation of the Network Upgrade Facilities shall be non-taxable, either as
contributions to capital, or as an advance, in accordance with the Internal Revenue Code and any
applicable state income tax laws and shall not be taxable as contributions in aid of construction
or otherwise under the Internal Revenue Code and any applicable state income tax laws.
5.12.2 Representations and Covenants.
In accordance with IRS Notice 2016-36, Transmission Developer represents and
covenants that (i) ownership of the electricity generated at the Large Generating Facility will
pass to another party prior to the transmission of the electricity on the New York State
Transmission System, (ii) for income tax purposes, the amount of any payments and the cost of
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SERVICE AGREEMENT NO. 2734
any property transferred to the Connecting Transmission Owner for the Network Upgrade
Facilities will be capitalized by Transmission Developer as an intangible asset and recovered
using the straight-line method over a useful life of twenty (20) years, and (iii) any portion of the
Connecting Transmission Owner’s Network Upgrade Facility that is a “dual-use intertie,” within
the meaning of IRS Notice 2016-36, is reasonably expected to carry only a de minimis amount of
electricity in the direction of the Large Generating Facility. For this purpose, “de minimis
amount” means no more than 5 percent of the total power flows in both directions, calculated in
accordance with the “5 percent test” set forth in IRS Notice 2016-36. This is not intended to be
an exclusive list of the relevant conditions that must be met to conform to IRS requirements for
non-taxable treatment.
At Connecting Transmission Owner’s request, Transmission Developer shall provide
Connecting Transmission Owner with a report from an independent engineer confirming its
representation in clause (iii), above. Connecting Transmission Owner represents and covenants
that the cost of the Network Upgrade Facilities paid for by Transmission Developer will have no
net effect on the base upon which rates are determined.
5.12.3 Indemnification for the Cost Consequences of Current Tax Liability
Imposed Upon the Connecting Transmission Owner.
Notwithstanding Article 5.12.1, Transmission Developer shall protect, indemnify and
hold harmless Connecting Transmission Owner from the cost consequences of any current tax
liability imposed against Connecting Transmission Owner as the result of payments or property
transfers made by Transmission Developer to Connecting Transmission Owner under this
Agreement, as well as any interest and penalties, other than interest and penalties attributable to
any delay caused by Connecting Transmission Owner.
Connecting Transmission Owner shall not include a gross-up for the cost consequences
of any current tax liability in the amounts it charges Transmission Developer under this
Agreement unless (i) Connecting Transmission Owner has determined, in good faith, that the
payments or property transfers made by Transmission Developer to Connecting Transmission
Owner should be reported as income subject to taxation or (ii) any Governmental Authority
directs Connecting Transmission Owner to report payments or property as income subject to
taxation; provided, however, that Connecting Transmission Owner may require Transmission
Developer to provide security, in a form reasonably acceptable to Connecting Transmission
Owner (such as a parental guarantee or a letter of credit), in an amount equal to the cost
consequences of any current tax liability under this Article 5.12. Transmission Developer shall
reimburse Connecting Transmission Owner for such costs on a fully grossed-up basis, in
accordance with Article 5.12.4, within thirty (30) Calendar Days of receiving written notification
from Connecting Transmission Owner of the amount due, including detail about how the amount
was calculated.
This indemnification obligation shall terminate at the earlier of (1) the expiration of the
ten-year testing period and the applicable statute of limitation, as it may be extended by the
Connecting Transmission Owner upon request of the IRS, to keep these years open for audit or
adjustment, or (2) the occurrence of a subsequent taxable event and the payment of any related
indemnification obligations as contemplated by this Article 5.12.
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5.12.4 Tax Gross-Up Amount.
Transmission Developer’s liability for the cost consequences of any current tax liability
under this Article 5.12 shall be calculated on a fully grossed-up basis. Except as may otherwise
be agreed to by the parties, this means that Transmission Developer will pay Connecting
Transmission Owner, in addition to the amount paid for the Network Upgrade Facilities, an
amount equal to (1) the current taxes imposed on Connecting Transmission Owner (“Current
Taxes”) on the excess of (a) the gross income realized by Connecting Transmission Owner as a
result of payments or property transfers made by Transmission Developer to Connecting
Transmission Owner under this Agreement (without regard to any payments under this
Article 5.12) (the “Gross Income Amount”) over (b) the present value of future tax deductions
for depreciation that will be available as a result of such payments or property transfers (the
“Present Value Depreciation Amount”), plus (2) an additional amount sufficient to permit the
Connecting Transmission Owner to receive and retain, after the payment of all Current Taxes, an
amount equal to the net amount described in clause (1).
For this purpose, (i) Current Taxes shall be computed based on Connecting Transmission
Owner’s composite federal and state tax rates at the time the payments or property transfers are
received and Connecting Transmission Owner will be treated as being subject to tax at the
highest marginal rates in effect at that time (the “Current Tax Rate”), and (ii) the Present Value
Depreciation Amount shall be computed by discounting Connecting Transmission Owner’s
anticipated tax depreciation deductions as a result of such payments or property transfers by
Connecting Transmission Owner’s current weighted average cost of capital. Thus, the formula
for calculating Transmission Developer’s liability to Connecting Transmission Owner pursuant
to this Article 5.12.4 can be expressed as follows: (Current Tax Rate x (Gross Income Amount -
Present Value Depreciation Amount))/(1 - Current Tax Rate). Transmission Developer’s
estimated tax liability in the event taxes are imposed shall be stated in Appendix A.
5.12.5 Reserved.
5.12.6 Subsequent Taxable Events.
If, within 10 years from the date on which the relevant Network Upgrade Facilities are
placed in service, (i) Transmission Developer Breaches the covenants contained in
Article 5.12.2, (ii) a “disqualification event” occurs within the meaning of IRS Notice 2016-36,
or (iii) this Agreement terminates and Connecting Transmission Owner retains ownership of the
Network Upgrade Facilities, the Transmission Developer shall pay a tax gross-up for the cost
consequences of any current tax liability imposed on Connecting Transmission Owner,
calculated using the methodology described in Article 5.12.4 and in accordance with IRS Notice
2016-36.
5.12.7 Contests.
In the event any Governmental Authority determines that Connecting Transmission
Owner’s receipt of payments or property constitutes income that is subject to taxation,
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Connecting Transmission Owner shall notify Transmission Developer, in writing, within thirty
(30) Calendar Days of receiving notification of such determination by a Governmental
Authority. Upon the timely written request by Transmission Developer and at Transmission
Developer’s sole expense, Connecting Transmission Owner may appeal, protest, seek abatement
of, or otherwise oppose such determination. Upon Transmission Developer’s written request and
sole expense, Connecting Transmission Owner may file a claim for refund with respect to any
taxes paid under this Article 5.12, whether or not it has received such a determination.
Connecting Transmission Owner reserves the right to make all decisions with regard to the
prosecution of such appeal, protest, abatement or other contest, including the selection of counsel
and compromise or settlement of the claim, but Connecting Transmission Owner shall keep
Transmission Developer informed, shall consider in good faith suggestions from Transmission
Developer about the conduct of the contest, and shall reasonably permit Transmission Developer
or a Transmission Developer representative to attend contest proceedings.
Transmission Developer shall pay to Connecting Transmission Owner on a periodic
basis, as invoiced by Connecting Transmission Owner, Connecting Transmission Owner’s
documented reasonable costs of prosecuting such appeal, protest, abatement or other contest,
including any costs associated with obtaining the opinion of independent tax counsel described
in this Article 5.12.7. The Connecting Transmission Owner may abandon any contest if the
Transmission Developer fails to provide payment to the Connecting Transmission Owner within
thirty (30) Calendar Days of receiving such invoice. At any time during the contest, Connecting
Transmission Owner may agree to a settlement either with Transmission Developer’s consent or
after obtaining written advice from nationally-recognized tax counsel, selected by Connecting
Transmission Owner, but reasonably acceptable to Transmission Developer, that the proposed
settlement represents a reasonable settlement given the hazards of litigation. Transmission
Developer’s obligation shall be based on the amount of the settlement agreed to by Transmission
Developer, or if a higher amount, so much of the settlement that is supported by the written
advice from nationally-recognized tax counsel selected under the terms of the preceding
sentence. The settlement amount shall be calculated on a fully grossed-up basis to cover any
related cost consequences of the current tax liability. The Connecting Transmission Owner may
also settle any tax controversy without receiving the Transmission Developer’s consent or any
such written advice; however, any such settlement will relieve the Transmission Developer from
any obligation to indemnify Connecting Transmission Owner for the tax at issue in the contest
(unless the failure to obtain written advice is attributable to the Transmission Developer’s
unreasonable refusal to the appointment of independent tax counsel).
5.12.8 Refund.
In the event that (a) any legislative change or administrative announcement, notice, ruling
or other determination makes it reasonably clear to Connecting Transmission Owner in good
faith that any amount paid or the value of any property transferred by Transmission Developer to
Connecting Transmission Owner under the terms of this Agreement is not taxable to Connecting
Transmission Owner, (b) any abatement, appeal, protest, or other contest results in a
determination that any payments or transfers made by Transmission Developer to Connecting
Transmission Owner are not subject to federal income tax, or (c) if Connecting Transmission
Owner receives a refund from any taxing authority for any overpayment of tax attributable to any
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payment or property transfer made by Transmission Developer to Connecting Transmission
Owner pursuant to this Agreement, Connecting Transmission Owner shall promptly refund to
Transmission Developer the following:
(i)
that is attributable to the amount determined to be non-taxable, together with interest thereon,
(ii)
Interest on any amounts paid by Transmission Developer to Connecting
Transmission Owner for such taxes which Connecting Transmission Owner did not submit to the
taxing authority, calculated in accordance with the methodology set forth in FERC’s regulations
at 18 C.F.R. §35.19a(a)(2)(iii) from the date payment was made by Transmission Developer to
the date Connecting Transmission Owner refunds such payment to Transmission Developer, and
(iii) With respect to any such taxes paid by Connecting Transmission Owner, any
refund or credit Connecting Transmission Owner receives or to which it may be entitled from
any Governmental Authority, interest (or that portion thereof attributable to the payment
described in clause (i), above) owed to the Connecting Transmission Owner for such
overpayment of taxes (including any reduction in interest otherwise payable by Connecting
Transmission Owner to any Governmental Authority resulting from an offset or credit);
provided, however, that Connecting Transmission Owner will remit such amount promptly to
Transmission Developer only after and to the extent that Connecting Transmission Owner has
received a tax refund, credit or offset from any Governmental Authority for any applicable
overpayment of income tax related to the Network Upgrade Facilities.
The intent of this provision is to leave both the Transmission Developer and Connecting
Transmission Owner, to the extent practicable, in the event that no taxes are due with respect to
any payment for Network Upgrade Facilities hereunder, in the same position they would have
been in had no such tax payments been made.
5.12.9 Taxes Other Than Income Taxes.
Upon the timely request by Transmission Developer, and at Transmission Developer’s
sole expense, Connecting Transmission Owner shall appeal, protest, seek abatement of, or
otherwise contest any tax (other than federal or state income tax) asserted or assessed against
Connecting Transmission Owner for which Transmission Developer may be required to
reimburse Connecting Transmission Owner under the terms of this Agreement. Transmission
Developer shall pay to Connecting Transmission Owner on a periodic basis, as invoiced by
Connecting Transmission Owner, Connecting Transmission Owner’s documented reasonable
costs of prosecuting such appeal, protest, abatement, or other contest. Transmission Developer
and Connecting Transmission Owner shall cooperate in good faith with respect to any such
contest. Unless the payment of such taxes is a prerequisite to an appeal or abatement or cannot
be deferred, no amount shall be payable by Transmission Developer to Connecting Transmission
Owner for such taxes until they are assessed by a final, non-appealable order by any court or
agency of competent jurisdiction. In the event that a tax payment is withheld and ultimately due
and payable after appeal, Transmission Developer will be responsible for all taxes, interest and
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penalties, other than penalties attributable to any delay caused by Connecting Transmission
Owner.
Tax Status; Non-Jurisdictional Entities.
5.13.1 Tax Status.
Each Party shall cooperate with the other Parties to maintain the other Parties’ tax status.
Nothing in this Agreement is intended to adversely affect the tax status of any Party including
the status of NYISO, or the status of any Connecting Transmission Owner with respect to the
issuance of bonds including, but not limited to, Local Furnishing Bonds. Notwithstanding any
other provisions of this Agreement, Connecting Transmission Owner shall not be required to
comply with any provisions of this Agreement that would result in the loss of tax-exempt status
of any of their Tax-Exempt Bonds or impair its ability to issue future tax-exempt obligations. For
purposes of this provision, Tax-Exempt Bonds shall include the obligations of the Connecting
Transmission Owner, the interest on which is not included in gross income under the Internal
Revenue Code.
Modification.
5.14.1 General.
If, prior to the In-Service Date of the Transmission Project or Network Upgrade
Facilities, either the Transmission Developer or Connecting Transmission Owner proposes to
modify the Transmission Project or Network Upgrade Facilities, they must inform the other
Parties of the proposed modification and must satisfy the requirements for such modifications in
(i) Section 22.5.4 of Attachment P to the ISO OATT, and (ii) the Development Agreement. The
Transmission Developer shall be responsible for the cost of any such additional modifications,
including the cost of studying the materiality and impact of the modification.
Following the In-Service Date of the Transmission Project or Network Upgrade
Facilities, either the Transmission Developer or Connecting Transmission Owner may undertake
modifications to its facilities covered by this Agreement. If either the Transmission Developer
or Connecting Transmission Owner plans to undertake a modification that reasonably may be
expected to affect the other Party’s facilities, that Party shall provide to the other Party, and to
NYISO, sufficient information regarding such modification so that the other Party and NYISO
may evaluate the potential impact of such modification prior to commencement of the work.
Such information shall be deemed to be Confidential Information hereunder and shall include
information concerning the timing of such modifications and whether such modifications are
expected to interrupt the transmission of electricity at the Point(s) of Interconnection. The Party
desiring to perform such work shall provide the relevant drawings, plans, and specifications to
the other Party and NYISO at least ninety (90) Calendar Days in advance of the commencement
of construction regarding such work or such shorter period upon which the Parties may agree,
which agreement shall not unreasonably be withheld, conditioned or delayed.
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5.14.2 Standards.
Any additions, modifications, or replacements made to a Party’s facilities shall be
designed, constructed and operated in accordance with this Agreement, NYISO requirements and
Good Utility Practice.
5.14.3 Modification Costs.
Transmission Developer or Connecting Transmission Owner, as applicable, shall not be
assigned the costs of any additions, modifications, or replacements that the other Party makes to
the New York State Transmission System to facilitate the interconnection of a third party to the
New York State Transmission System, or to provide Transmission Service to a third party under
the ISO OATT, except in accordance with the cost allocation procedures in Attachment S of the
ISO OATT.
ARTICLE 6. TESTING AND INSPECTION
Pre-In-Service Date Testing and Modifications.
Prior to the In-Service Date of the Transmission Project or Network Upgrade Facilities,
as applicable, the Connecting Transmission Owner or Transmission Developer shall, as specified
in Appendix A, test the Transmission Project and Network Upgrade Facilities to ensure their safe
and reliable operation. Similar testing may be required after initial operation. Transmission
Developer and Connecting Transmission Owner shall each make any modifications to its
facilities that are found to be necessary as a result of such testing. Transmission Developer shall
bear the cost of all such testing and modifications. Transmission Developer and Connecting
Transmission Owner shall coordinate with NYISO prior to performing the testing of the
Transmission Project and Network Upgrade Facilities and prior to the facilities entering into
service.
Post-In-Service Date Testing and Modifications.
Transmission Developer and Connecting Transmission Owner shall each at its own
expense perform routine inspection and testing of its facilities and equipment in accordance with
Good Utility Practice and Applicable Reliability Standards as may be necessary to ensure the
continued interconnection of the Transmission Project with the New York State Transmission
System in a safe and reliable manner. Transmission Developer and Connecting Transmission
Owner shall each have the right, upon advance written notice, to require reasonable additional
testing of the other Party’s facilities, at the requesting Party’s expense, as may be in accordance
with Good Utility Practice.
Right to Observe Testing.
Transmission Developer and Connecting Transmission Owner shall each notify the other
Party, and the NYISO, in advance of its performance of tests of the Transmission Project and
Network Upgrade Facilities. The other Party, and the NYISO, shall each have the right, at its
own expense, to observe such testing.
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Right to Inspect.
Transmission Developer and Connecting Transmission Owner shall each have the right,
but shall have no obligation to: (i) observe the other Party’s tests and/or inspection of any of its
System Protection Facilities and other protective equipment; (ii) review the settings of the other
Party’s System Protection Facilities and other protective equipment; and (iii) review the other
Party’s maintenance records relative to the System Protection Facilities and other protective
equipment. NYISO shall have these same rights of inspection as to the facilities and equipment
of Transmission Developer and Connecting Transmission Owner. A Party may exercise these
rights from time to time as it deems necessary upon reasonable notice to the other Party. The
exercise or non-exercise by a Party of any such rights shall not be construed as an endorsement
or confirmation of any element or condition of the System Protection Facilities or other
protective equipment or the operation thereof, or as a warranty as to the fitness, safety,
desirability, or reliability of same. Any information that a Party obtains through the exercise of
any of its rights under this Article 6.4 shall be treated in accordance with Article 22 of this
Agreement and Attachment F to the ISO OATT.
ARTICLE 7. METERING
General.
Connecting Transmission Owner shall be responsible for the metering at any Metering
Points identified by the NYISO in connection with the interconnection of the Transmission
Project with Connecting Transmission Owner’s system in accordance with the requirements in
this Article 7. Connecting Transmission Owner and/or Transmission Developer shall, as such
responsibilities are specified in Appendix A of this Agreement, procure and install any required
Metering Equipment prior to any operation of the Transmission Project. Connecting
Transmission Owner shall own, operate, test, maintain, and, if directed by the NYISO, relocate
such Metering Equipment in accordance with ISO Procedures, as such requirements are amended
from time to time. Connecting Transmission Owner shall provide the NYISO and Transmission
Developer with metering data in accordance with the metering requirements set forth in this
Agreement, the NYISO Tariffs, and ISO Procedures, as such requirements are amended from
time to time. Transmission Developer shall bear all reasonable documented costs associated
with the purchase and installation of the Metering Equipment.
Check Meters.
Transmission Developer, at its option and expense, may install and operate, on its
premises and on its side of the Points of Interconnection, one or more check meters to check
Connecting Transmission Owner’s meters. Such check meters shall be for check purposes only
and shall not be used for the measurement of power flows for purposes of this Agreement, except
as provided in Article 7.4 below. The installation, operation and maintenance thereof shall be
performed entirely by Transmission Developer in accordance with Good Utility Practice
Standards.
Connecting Transmission Owner and Transmission Developer shall, as such
responsibilities are specified in Appendix A of this Agreement, install, calibrate, and test revenue
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SERVICE AGREEMENT NO. 2734
quality Metering Equipment including potential transformers and current transformers in
accordance with ISO Procedures, as such requirements are amended from time to time.
Testing of Metering Equipment.
Connecting Transmission Owner shall inspect and test all of its Metering Equipment
upon installation and at least once every two (2) years thereafter. If required by ISO Procedures,
Connecting Transmission Owner shall, at its own expense, inspect or test Metering Equipment
more frequently than every two (2) years. Connecting Transmission Owner shall give reasonable
notice of the time when any inspection or test shall take place, and NYISO and Transmission
Developer may have representatives present at the test or inspection. If at any time Metering
Equipment is found to be inaccurate or defective, it shall be adjusted, repaired or replaced at
Connecting Transmission Owner’s expense in order to provide accurate metering. Connecting
Transmission Owner and NYISO shall address the loss of meter data or meter data anomalies in
accordance with ISO Procedures. The NYISO shall reserve the right to review all associated
metering equipment installation on the Transmission Developer’s or Connecting Transmission
Owner’s property at any time.
Metering Data.
At Transmission Developer’s expense, the metered data shall be telemetered to one or
more locations designated by NYISO. Such telemetered data shall be used, under normal
operating conditions, as the official measurement of the amount of energy at the Metering Points.
ARTICLE 8. COMMUNICATIONS
Transmission Developer Obligations.
Transmission Developer shall maintain satisfactory operating communications, including
providing analog and digital real-time telemetry, with Connecting Transmission Owner and
NYISO in accordance with the requirements in this Agreement, the Operating Agreement
(including Section 2.05, Local Control Center, Metering and Telemetry), NYISO Tariffs, and
ISO Procedures, as such requirements are amended from time to time. Transmission Developer
shall provide standard voice line, dedicated voice line and facsimile communications at its
control center for the Transmission Project through use of either the public telephone system, or
a voice communications system that does not rely on the public telephone system. Transmission
Developer shall also provide the dedicated data circuit(s) necessary to provide Transmission
Developer data to Connecting Transmission Owner and NYISO as set forth in Appendix D
hereto. The data circuit(s) shall extend from the Transmission Project to the location(s) specified
by Connecting Transmission Owner and NYISO. Any required maintenance of such
communications equipment shall be performed by Transmission Developer. Operational
communications shall be activated and maintained under, but not be limited to, the following
events: system paralleling or separation, scheduled and unscheduled shutdowns, equipment
clearances, and hourly and daily load data.
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Remote Terminal Unit.
Prior to the Initial Synchronization Date of the Transmission Project, a Remote Terminal
Unit, or equivalent data collection and transfer equipment acceptable to the Parties, shall be
installed by Transmission Developer, or by Connecting Transmission Owner at Transmission
Developer’s expense, to gather accumulated and instantaneous data to be telemetered to the
location(s) designated by Connecting Transmission Owner and NYISO through use of a
dedicated point-to-point data circuit(s) as indicated in Article 8.1. The communication protocol
for the data circuit(s) shall be specified by Connecting Transmission Owner and NYISO.
Instantaneous bi-directional analog real power and reactive power flow information must be
telemetered directly to the location(s) specified by Connecting Transmission Owner and NYISO.
Each Party will promptly advise the appropriate other Party if it detects or otherwise
learns of any metering, telemetry or communications equipment errors or malfunctions that
require the attention and/or correction by that other Party. The Party owning such equipment
shall correct such error or malfunction as soon as reasonably feasible.
No Annexation.
Any and all equipment placed on the premises of a Party shall be and remain the property
of the Party providing such equipment regardless of the mode and manner of annexation or
attachment to real property, unless otherwise mutually agreed by the Party providing such
equipment and the Party receiving such equipment.
ARTICLE 9. OPERATIONS
General.
Each Party shall comply with Applicable Laws and Regulations and Applicable
Reliability Standards. Each Party shall provide to the other Parties all information that may
reasonably be required by the other Parties to comply with Applicable Laws and Regulations and
Applicable Reliability Standards. Connecting Transmission Owner or Transmission Developer,
as applicable, shall provide the NYISO with notifications of all of its power system equipment
additions or modifications in accordance with ISO Procedures, including the NYISO’s
Reliability Analysis Data Manual (Manual 24).
NYISO and Connecting Transmission Owner Obligations.
Connecting Transmission Owner and NYISO shall cause the New York State
Transmission System to be operated, maintained and controlled in a safe and reliable manner in
accordance with this Agreement and the NYISO Tariffs. Connecting Transmission Owner and
NYISO may provide operating instructions to Transmission Developer consistent with this
Agreement, NYISO procedures and Connecting Transmission Owner’s operating protocols and
procedures as they may change from time to time. Connecting Transmission Owner and NYISO
will consider changes to their respective operating protocols and procedures proposed by
Transmission Developer.
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Transmission Developer Obligations.
Transmission Developer shall at its own expense operate, maintain and control the
Transmission Project in a safe and reliable manner and in accordance with this Agreement, the
NYISO Tariffs, ISO Procedures, and the Operating Agreement. Transmission Developer shall
operate the Transmission Project in accordance with NYISO and Connecting Transmission
Owner requirements, as such requirements are set forth or referenced in Appendix C hereto.
Appendix C will be modified to reflect changes to the requirements as they may change from
time to time. Any Party may request that the appropriate other Party or Parties provide copies of
the requirements set forth or referenced in Appendix C hereto.
Outages and Interruptions.
9.4.1 Outages.
9.4.1.1 Outage Authority and Coordination.
Transmission Developer and Connecting Transmission Owner may each, in accordance
with NYISO procedures and Good Utility Practice and in coordination with the other Party,
remove from service any of its Transmission Project facilities or Network Upgrade Facilities that
may impact the other Party’s facilities as necessary to perform maintenance or testing or to
install or replace equipment. Absent an Emergency or Emergency State, the Party scheduling a
removal of such facility(ies) from service will use Reasonable Efforts to schedule such removal
on a date and time mutually acceptable to both the Transmission Developer and the Connecting
Transmission Owner. In all circumstances either Party planning to remove such facility(ies)
from service shall use Reasonable Efforts to minimize the effect on the other Party of such
removal.
9.4.1.2 Outage Schedules.
The Transmission Developer or Connecting Transmission Owner, as applicable, and
pursuant to ISO Procedures, shall post scheduled outages of its respective transmission facilities
on the NYISO OASIS.
9.4.1.3 Outage Restoration.
If an outage on the Transmission Project or Network Upgrade Facilities adversely affects
the other Party’s operations or facilities, the Party that owns the facility that is out of service
shall use Reasonable Efforts to promptly restore such facility(ies) to a normal operating
condition consistent with the nature of the outage. The Party that owns the facility that is out of
service shall provide the other Party and NYISO, to the extent such information is known,
information on the nature of the Emergency or Emergency State, an estimated time of
restoration, and any corrective actions required. Initial verbal notice shall be followed up as
soon as practicable with written notice explaining the nature of the outage.
9.4.2 Interruption of Service. If required by Good Utility Practice or Applicable
Reliability Standards to do so, the NYISO, Connecting Transmission Owner, or Transmission
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Developer may require the Connecting Transmission Owner or Transmission Developer to
interrupt the transmission of electricity if such transmission of electricity could adversely affect
the ability of NYISO and, as applicable, Connecting Transmission Owner or Transmission
Developer to perform such activities as are necessary to safely and reliably operate and maintain
the New York State Transmission System. The following provisions shall apply to any
9.4.2.1 The interruption shall continue only for so long as reasonably necessary
under Good Utility Practice;
9.4.2.2 When the interruption must be made under circumstances which do not
allow for advance notice, NYISO, Connecting Transmission Owner, or Transmission Developer
shall notify, as applicable, Transmission Developer or Connecting Transmission Owner by
telephone as soon as practicable of the reasons for the curtailment or interruption, and, if known,
its expected duration. Telephone notification shall be followed by written notification as soon as
practicable;
9.4.2.3 Except during the existence of an Emergency or Emergency State, when
the interruption can be scheduled without advance notice, NYISO, Connecting Transmission
Owner, or Transmission Developer shall notify, as applicable, Transmission Developer or
Connecting Transmission Owner in advance regarding the timing of such scheduling and of the
expected duration. The Parties shall coordinate with each other using Good Utility Practice to
schedule the interruption during periods of least impact to the Transmission Developer, the
Connecting Transmission Owner and the New York State Transmission System;
9.4.2.4 The Parties shall cooperate and coordinate with each other to the extent
necessary in order to restore the Transmission Project, Network Upgrade Facilities, and the New
York State Transmission System to their normal operating state, consistent with system
conditions and Good Utility Practice.
9.4.3 System Protection and Other Control Requirements.
9.4.3.1 System Protection Facilities. Transmission Developer shall, at its
expense, install, operate and maintain System Protection Facilities as a part of the Transmission
Project. Connecting Transmission Owner shall install at Transmission Developer’s expense any
System Protection Facilities that may be required on the New York State Transmission System
as a result of the interconnection of the Transmission Project.
9.4.3.2 The protection facilities of both the Transmission Developer and
Connecting Transmission Owner shall be designed and coordinated with other systems in
accordance with Good Utility Practice and Applicable Reliability Standards.
9.4.3.3 The Transmission Developer and Connecting Transmission Owner shall
each be responsible for protection of its respective facilities consistent with Good Utility Practice
and Applicable Reliability Standards.
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9.4.3.4 The protective relay design of the Transmission Developer and
Connecting Transmission Owner shall each incorporate the necessary test switches to perform
the tests required in Article 6 of this Agreement. The required test switches will be placed such
that they allow operation of lockout relays while preventing breaker failure schemes from
operating and causing unnecessary breaker operations and/or the tripping of the Transmission
Developer’s Transmission Project.
9.4.3.5 The Transmission Developer and Connecting Transmission Owner will
each test, operate and maintain System Protection Facilities in accordance with Good Utility
Practice, NERC and NPCC criteria.
9.4.3.6 Prior to the In-Service Dates of the Network Upgrade Facilities and
Transmission Project, the Transmission Developer and Connecting Transmission Owner shall
each perform, or their agents shall perform, a complete calibration test and functional trip test of
the System Protection Facilities. At intervals suggested by Good Utility Practice and following
any apparent malfunction of the System Protection Facilities, the Transmission Developer and
Connecting Transmission Owner shall each perform both calibration and functional trip tests of
its System Protection Facilities. These tests do not require the tripping of any in-service
generation unit. These tests do, however, require that all protective relays and lockout contacts
be activated.
9.4.4 Requirements for Protection.
In compliance with NPCC requirements and Good Utility Practice, Transmission
Developer shall provide, install, own, and maintain relays, circuit breakers and all other devices
necessary to remove any fault contribution of the Transmission Project to any short circuit
occurring on the New York State Transmission System not otherwise isolated by Connecting
Transmission Owner’s equipment, such that the removal of the fault contribution shall be
coordinated with the protective requirements of the New York State Transmission System. Such
protective equipment shall include, without limitation, a disconnecting device or switch with
load-interrupting capability located between the Transmission Project and the New York State
Transmission System at a site selected upon mutual agreement (not to be unreasonably withheld,
conditioned or delayed) of the Transmission Developer and Connecting Transmission Owner.
Transmission Developer shall be responsible for protection of the Transmission Project and
Transmission Developer’s other equipment from such conditions as negative sequence currents,
over- or under-frequency, sudden load rejection, over- or under-voltage, and generator loss-of-
field. Transmission Developer shall be solely responsible to disconnect the Transmission Project
and Transmission Developer’s other equipment if conditions on the New York State
Transmission System could adversely affect the Transmission Project.
9.4.5 Power Quality.
Neither the facilities of Transmission Developer nor the facilities of Connecting
Transmission Owner shall cause excessive voltage flicker nor introduce excessive distortion to
the sinusoidal voltage or current waves as defined by ANSI Standard C84.1-1989, in accordance
with IEEE Standard 519, or any applicable superseding electric industry standard. In the event
of a conflict between ANSI Standard C84.1-1989, or any applicable superseding electric industry
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standard, ANSI Standard C84.1-1989, or the applicable superseding electric industry standard,
shall control.
Switching and Tagging Rules.
The Transmission Developer and Connecting Transmission Owner shall each provide the
other Party a copy of its switching and tagging rules that are applicable to the other Party’s
activities. Such switching and tagging rules shall be developed on a nondiscriminatory basis.
The Parties shall comply with applicable switching and tagging rules, as amended from time to
time, in obtaining clearances for work or for switching operations on equipment.
Disturbance Analysis Data Exchange.
The Parties will cooperate with one another and the NYISO in the analysis of
disturbances to either the Transmission Project or the New York State Transmission System by
gathering and providing access to any information relating to any disturbance, including
information from disturbance recording equipment, protective relay targets, breaker operations
and sequence of events records, and any disturbance information required by Good Utility
Practice.
ARTICLE 10. MAINTENANCE
Connecting Transmission Owner Obligations.
Connecting Transmission Owner shall maintain its transmission facilities, including the
Network Upgrade Facilities, in a safe and reliable manner and in accordance with this
Agreement.
Transmission Developer Obligations.
Transmission Developer shall maintain its Transmission Project in a safe and reliable
manner and in accordance with this Agreement.
Coordination.
The Transmission Developer and Connecting Transmission Owner shall confer regularly
to coordinate the planning, scheduling and performance of preventive and corrective
maintenance on the Transmission Project and Network Upgrade Facilities. The Transmission
Developer and Connecting Transmission Owner shall keep NYISO fully informed of the
preventive and corrective maintenance that is planned, and shall schedule all such maintenance
in accordance with NYISO procedures.
Secondary Systems.
The Transmission Developer and Connecting Transmission Owner shall each cooperate
with the other in the inspection, maintenance, and testing of control or power circuits that operate
below 600 volts, AC or DC, including, but not limited to, any hardware, control or protective
devices, cables, conductors, electric raceways, secondary equipment panels, transducers,
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SERVICE AGREEMENT NO. 2734
batteries, chargers, and voltage and current transformers that directly affect the operation of
Transmission Developer or Connecting Transmission Owner’s facilities and equipment which
may reasonably be expected to impact the other Party. The Transmission Developer and
Connecting Transmission Owner shall each provide advance notice to the other Party, and to
NYISO, before undertaking any work on such circuits, especially on electrical circuits involving
circuit breaker trip and close contacts, current transformers, or potential transformers.
Operating and Maintenance Expenses.
Subject to the provisions herein addressing the use of facilities by others, and except for
operations and maintenance expenses associated with modifications made for providing
interconnection or transmission service to a third party and such third party pays for such
expenses, Transmission Developer shall be responsible for all reasonable expenses including
overheads, associated with owning, operating, maintaining, repairing, and replacing the
Transmission Project. The Connecting Transmission Owner shall be responsible for all
reasonable expenses including overheads, associated with owning, operating, maintaining,
repairing, and replacing the Network Upgrade Facilities.
ARTICLE 11. PERFORMANCE OBLIGATION
Transmission Project.
Transmission Developer shall design, procure, construct, install, own and/or control the
Transmission Project described in Appendix C hereto, at its sole expense.
Network Upgrade Facilities.
Connecting Transmission Owner and Transmission Developer shall design, procure,
construct, and install the Network Upgrade Facilities as specified in Appendix A hereto.
Connecting Transmission Owner shall have ownership and control of the Network Upgrade
Facilities.
Special Provisions for Affected Systems.
For the re-payment of amounts advanced to Affected System Operator for Network
Upgrade Facilities, the Transmission Developer and Affected System Operator shall enter into an
agreement that provides for such re-payment, but only if responsibility for the cost of such
Network Upgrade Facilities is not to be allocated in accordance with the Facilities Study report.
The agreement shall specify the terms governing payments to be made by the Transmission
Developer to the Affected System Operator as well as the re-payment by the Affected System
Operator.
Provision of Security.
Simultaneously with the execution of this Agreement, the Transmission Developer: (i)
shall deliver to the Connecting Transmission Owner a signed security agreement, by and
between the Transmission Developer and the Connecting Transmission Owner, in a form that is
acceptable to the Connecting Transmission Owner in its sole discretion, securing the
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performance of the Transmission Developer’s obligations under this Agreement, and (ii) shall
provide the Connecting Transmission Owner with an irrevocable, transferrable standby letter of
credit in the form required by the aforementioned security agreement in the amount of the cost
estimate for the Network Upgrade Facilities, as documented in the Facilities Study report, in
accordance with Section 22.9.3 of Attachment P of the ISO OATT. This amount of Security is
set forth in Appendix A of this Agreement. Upon the successful turnover, commissioning, and
energization of any Network Upgrade Facility, the Security shall be reduced on a dollar-for-
dollar basis for payments made to Connecting Transmission Owner for the purpose of
performing engineering design, constructing, procuring, and installing of such Network Upgrade
Facility.
In addition:
11.4.1 Reserved.
11.4.2 The letter of credit must be issued by a financial institution reasonably
acceptable to Connecting Transmission Owner and must specify a reasonable expiration date.
11.4.3 Reserved.
Forfeiture of Security
The Security that the Transmission Developer provides the Connecting Transmission
Owner in accordance with Article 11.4 of this Agreement shall be irrevocable and shall be
subject to forfeiture in the event that the Transmission Developer subsequently terminates or
abandons development of the Transmission Project. Any Security provided by the Transmission
Developer to the Connecting Transmission Owner shall be subject to forfeiture to the extent
necessary to defray the cost of: (1) Network Upgrade Facilities required for other Transmission
Developers whose Transmission Project interconnection studies included the Transmission
Developer’s Transmission Project and Network Upgrade Facilities in their base cases; and (2)
System Upgrade Facilities and System Deliverability Upgrade Facilities required for projects for
which the Transmission Project and Network Upgrade Facilities were included in their Annual
Transmission Reliability Assessment and/or Class Year Deliverability Study, as applicable. If
Transmission Developer’s Security is subject to forfeiture to defray the costs of an affected
upgrade pursuant to this Article 11.5 and the Security is not in a form that can be readily drawn
on by the Connecting Transmission Owner to defray the costs of the affected upgrade,
Transmission Developer shall negotiate in good faith with the Connecting Transmission Owner
to replace the Security with cash or an alternative form of Security that can be readily drawn on
by Connecting Transmission Owner up to the amount required to satisfy Transmission
Developer’s Security obligations under this Agreement, including defraying the costs of the
affected upgrade. Connecting Transmission Owner shall only be responsible for using
Transmission Developer’s Security to defray the costs of an affected upgrade to the extent
Transmission Developer has provided cash or Security in a form that the Connecting
Transmission Owner can readily draw on to defray such costs.
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Network Upgrade Facility Costs
11.6.1 If the actual cost of Network Upgrade Facilities is less than the agreed-to and
secured amount, Transmission Developer is responsible only for the actual cost figure.
11.6.2 If the actual cost of Network Upgrade Facilities is greater than the agreed-to and
secured amount because other projects have been expanded, accelerated, otherwise modified or
terminated, Transmission Developer is responsible only for the agreed-to and secured amount for
the Network Upgrade Facilities. The additional cost is covered by the developers of the
modified projects, or by the drawing on the cash that has been paid and the Security that has
been posted for terminated projects, depending on the factors that caused the additional cost.
Such forfeitable Security from other developers will be drawn on only as needed for this
purpose, and only to the extent that the terminated project associated with that Security has
caused additional cost and that the developer of the terminated project has provided cash or
Security in a form that the Connecting Transmission Owner can readily draw on.
11.6.3 If the actual cost of the Network Upgrade Facilities is greater than the agreed-to
and secured amount for reasons other than those set forth in Article 11.6.2, Transmission
Developer will pay all prudently incurred additional costs to Connecting Transmission Owner as
such costs are incurred; provided, however, that if practicable, the Connecting Transmission
Owner shall provide Transmission Developer with thirty (30) days advance, written notice
detailing any costs that Connecting Transmission Owner reasonably anticipates will exceed the
agreed to and secured amount. Disputes between Transmission Developer and Connecting
Transmission Owner concerning costs in excess of the agreed-to and secured amount will be
resolved by the parties in accordance with the terms and conditions of Article 27.
Line Outage Costs.
Notwithstanding anything in the ISO OATT to the contrary, the Connecting Transmission
Owner may propose to recover line outage costs associated with the installation of Network
Upgrade Facilities on a case-by-case basis.
ARTICLE 12. INVOICE
General.
The Transmission Developer and Connecting Transmission Owner shall each submit to
the other Party, on a monthly basis, invoices of amounts due for the preceding month or as
otherwise agreed by such Parties and as set forth in Section 2 of Appendix B. Each invoice shall
state the month to which the invoice applies and fully describe the services and equipment
provided. The Transmission Developer and Connecting Transmission Owner may discharge
mutual debts and payment obligations due and owing to each other on the same date through
netting, in which case all amounts one Party owes to the other Party under this Agreement,
including interest payments or credits, shall be netted so that only the net amount remaining due
shall be paid by the owing Party.
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Final Invoice and Refund of Remaining Security.
Within six months after completion of the construction of Network Upgrade Facilities,
Connecting Transmission Owner shall provide an invoice of the final cost of the construction of
the Network Upgrade Facilities and shall set forth such costs in sufficient detail to enable
Transmission Developer to compare the actual costs with the estimates and to ascertain
deviations, if any, from the cost estimates. Connecting Transmission Owner shall refund to
Transmission Developer any amount by which the actual payment by Transmission Developer
for estimated costs exceeds the actual costs of construction within thirty (30) Calendar Days of
the issuance of such final construction invoice. Following the later of (i) the completion of the
construction of the Network Upgrade Facilities and Connecting Transmission Owner’s
acceptance of the Network Upgrade Facilities or (ii) Transmission Developer’s payment of any
final invoice issued under this Article 12.2, Connecting Transmission Owner shall refund to the
Transmission Developer any remaining portions of its Security, except as set forth in
Article 11.5. Connecting Transmission Owner shall provide Transmission Developer with the
refunded amount within thirty (30) Calendar Days of the Parties’ satisfaction of the requirements
in this Article 12.2.
Payment.
Invoices shall be rendered to the paying Party at the address specified in Appendix F
hereto. The Party receiving the invoice shall pay the invoice within thirty (30) Calendar Days of
receipt. All payments shall be made in immediately available funds payable to the other Party,
or by wire transfer to a bank named and account designated by the invoicing Party. Payment of
invoices will not constitute a waiver of any rights or claims the paying Party may have under this
Agreement.
Disputes.
In the event of a billing dispute between Connecting Transmission Owner and
Transmission Developer, Connecting Transmission Owner shall continue to perform under this
Agreement as long as Transmission Developer: (i) continues to make all payments not in dispute;
and (ii) pays to Connecting Transmission Owner or into an independent escrow account the
portion of the invoice in dispute, pending resolution of such dispute. If Transmission Developer
fails to meet these two requirements for continuation of service, then Connecting Transmission
Owner may provide notice to Transmission Developer of a Default pursuant to Article 17.
Within thirty (30) Calendar Days after the resolution of the dispute, the Party that owes money to
the other Party shall pay the amount due with interest calculated in accord with the methodology
set forth in FERC’s Regulations at 18 C.F.R. § 35.19a(a)(2)(iii).
ARTICLE 13. EMERGENCIES
Obligations.
Each Party shall comply with the Emergency State procedures of NYISO, the applicable
Reliability Councils, Applicable Laws and Regulations, and any emergency procedures agreed to
by the NYISO Operating Committee. Transmission Developer and Connecting Transmission
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Owner agree to coordinate with NYISO to develop procedures that will address the operations of
the Transmission Project during Emergency conditions.
Notice.
Each Party shall notify the other Parties promptly when it becomes aware of an
Emergency or Emergency State that affects, or may reasonably be expected to affect, the
Transmission Project or the New York State Transmission System. To the extent information is
known, the notification shall describe the Emergency or Emergency State, the extent of the
damage or deficiency, the expected effect on the operation of Transmission Developer’s or
Connecting Transmission Owner’s facilities and operations, its anticipated duration and the
corrective action taken and/or to be taken. The initial notice shall be followed as soon as
practicable with written notice.
Immediate Action.
Unless, in Transmission Developer’s reasonable judgment, immediate action is required,
Transmission Developer shall obtain the consent of Connecting Transmission Owner, such
consent to not be unreasonably withheld, prior to performing any manual switching operations at
the Transmission Project in response to an Emergency or Emergency State either declared by
NYISO, Connecting Transmission Owner or otherwise regarding New York State Transmission
System.
NYISO, Transmission Developer, and Connecting Transmission Owner
Authority.
Consistent with ISO Procedures, Good Utility Practice, and this Agreement, any Party
may take whatever actions with regard to the New York State Transmission System it deems
necessary during an Emergency or Emergency State in order to (i) preserve public health and
safety, (ii) preserve the reliability of the New York State Transmission System, (iii) limit or
prevent damage, and (iv) expedite restoration of service. Transmission Developer and
Connecting Transmission Owner shall use Reasonable Efforts to assist the other in such actions.
Limited Liability.
No Party shall be liable to another Party for any action it takes in responding to an
Emergency or Emergency State so long as such action is made in good faith and is consistent
with Good Utility Practice and the NYISO Tariffs.
ARTICLE 14. REGULATORY REQUIREMENTS AND GOVERNING LAW
Regulatory Requirements.
Each Party’s obligations under this Agreement shall be subject to its receipt of any
required approval or certificate from one or more Governmental Authorities in the form and
substance satisfactory to the applying Party, or the Party making any required filings with, or
providing notice to, such Governmental Authorities, and the expiration of any time period
associated therewith. Each Party shall in good faith seek and use its Reasonable Efforts to obtain
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such other approvals. Nothing in this Agreement shall require Transmission Developer to take
any action that could result in its inability to obtain, or its loss of, status or exemption under the
Federal Power Act or the Public Utility Holding Company Act of 2005 or the Public Utility
Regulatory Policies Act of 1978, as amended.
Governing Law.
14.2.1 The validity, interpretation and performance of this Agreement and each of its
provisions shall be governed by the laws of the state of New York, without regard to its conflicts
of law principles.
14.2.2 This Agreement is subject to all Applicable Laws and Regulations.
14.2.3 Each Party expressly reserves the right to seek changes in, appeal, or otherwise
contest any laws, orders, rules, or regulations of a Governmental Authority.
ARTICLE 15. NOTICES
General.
Unless otherwise provided in this Agreement, any notice, demand or request required or
permitted to be given by a Party to the other Parties and any instrument required or permitted to
be tendered or delivered by a Party in writing to the other Parties shall be effective when
delivered and may be so given, tendered or delivered, by recognized national courier, or by
depositing the same with the United States Postal Service with postage prepaid, for delivery by
certified or registered mail, addressed to the Party, or personally delivered to the Party, at the
address set out in Appendix F hereto.
A Party may change the notice information in this Agreement by giving five (5) Business
Days written notice prior to the effective date of the change.
Billings and Payments.
Billings and payments shall be sent to the addresses set out in Appendix F hereto.
Alternative Forms of Notice.
Any notice or request required or permitted to be given by a Party to the other Parties and
not required by this Agreement to be given in writing may be so given by telephone, facsimile or
email to the telephone numbers and email addresses set out in Appendix F hereto.
Operations and Maintenance Notice.
Transmission Developer and Connecting Transmission Owner shall each notify the other
Party, and NYISO, in writing of the identity of the person(s) that it designates as the point(s) of
contact with respect to the implementation of Articles 9 and 10 of this Agreement.
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ARTICLE 16. FORCE MAJEURE
16.1 Economic hardship is not considered a Force Majeure event.
16.2 A Party shall not be responsible or liable, or deemed, in Default with respect to
any obligation hereunder, other than the obligation to pay money when due, to the extent the
Party is prevented from fulfilling such obligation by Force Majeure. A Party unable to fulfill any
obligation hereunder (other than an obligation to pay money when due) by reason of Force
Majeure shall give notice and the full particulars of such Force Majeure to the other Parties in
writing or by telephone as soon as reasonably possible after the occurrence of the cause relied
upon. Telephone notices given pursuant to this Article shall be confirmed in writing as soon as
reasonably possible and shall specifically state full particulars of the Force Majeure, the time and
date when the Force Majeure occurred and when the Force Majeure is reasonably expected to
cease. The Party affected shall exercise due diligence to remove such disability with reasonable
dispatch, but shall not be required to accede or agree to any provision not satisfactory to it in
order to settle and terminate a strike or other labor disturbance.
ARTICLE 17. DEFAULT
General.
No Breach shall exist where such failure to discharge an obligation (other than the
payment of money) is the result of Force Majeure as defined in this Agreement or the result of an
act or omission of the other Parties. Upon a Breach, the non-Breaching Parties shall give written
notice of such to the Breaching Party. The Breaching Party shall have thirty (30) Calendar Days
from receipt of the Breach notice within which to cure such Breach; provided however, if such
Breach is not capable of cure within thirty (30) Calendar Days, the Breaching Party shall
commence such cure within thirty (30) Calendar Days after notice and continuously and
diligently complete such cure within ninety (90) Calendar Days from receipt of the Breach
notice; and, if cured within such time, the Breach specified in such notice shall cease to exist.
Right to Terminate.
If a Breach is not cured as provided in this Article 17, or if a Breach is not capable of
being cured within the period provided for herein, the non-Breaching Parties acting together shall
thereafter have the right to declare a Default and terminate this Agreement by written notice at
any time until cure occurs, and be relieved of any further obligation hereunder and, whether or
not those Parties terminate this Agreement, to recover from the defaulting Party all amounts due
hereunder, plus all other damages and remedies to which they are entitled at law or in equity.
The provisions of this Article will survive termination of this Agreement.
ARTICLE 18. INDEMNITY, CONSEQUENTIAL DAMAGES AND INSURANCE
Indemnity.
Each Party (the “Indemnifying Party”) shall at all times indemnify, defend, and save
harmless, as applicable, the other Parties (each an “Indemnified Party”) from, any and all
damages, losses, claims, including claims and actions relating to injury to or death of any person
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or damage to property, the alleged violation of any Environmental Law, or the release or
threatened release of any Hazardous Substance, demand, suits, recoveries, costs and expenses,
court costs, attorney fees, and all other obligations by or to third parties (any and all of these a
“Loss”), arising out of or resulting from (i) the Indemnified Party’s performance of its
obligations under this Agreement on behalf of the Indemnifying Party, except in cases where the
Indemnifying Party can demonstrate that the Loss of the Indemnified Party was caused by the
gross negligence or intentional wrongdoing of the Indemnified Party or (ii) the violation by the
Indemnifying Party of any Environmental Law or the release by the Indemnifying Party of any
Hazardous Substance.
18.1.1
Indemnified Party.
If a Party is entitled to indemnification under this Article 18 as a result of a claim by a
third party, and the Indemnifying Party fails, after notice and reasonable opportunity to proceed
under Article 18.1.3, to assume the defense of such claim, such Indemnified Party may at the
expense of the Indemnifying Party contest, settle or consent to the entry of any judgment with
respect to, or pay in full, such claim.
18.1.2
Indemnifying Party.
If an Indemnifying Party is obligated to indemnify and hold any Indemnified Party
harmless under this Article 18, the amount owing to the Indemnified Party shall be the amount of
such Indemnified Party’s actual Loss, net of any insurance or other recovery.
18.1.3
Indemnity Procedures.
Promptly after receipt by an Indemnified Party of any claim or notice of the
commencement of any action or administrative or legal proceeding or investigation as to which
the indemnity provided for in Article 18.1 may apply, the Indemnified Party shall notify the
Indemnifying Party of such fact. Any failure of or delay in such notification shall not affect a
Party’s indemnification obligation unless such failure or delay is materially prejudicial to the
Indemnifying Party.
Except as stated below, the Indemnifying Party shall have the right to assume the defense
thereof with counsel designated by such Indemnifying Party and reasonably satisfactory to the
Indemnified Party. If the defendants in any such action include one or more Indemnified Parties
and the Indemnifying Party and if the Indemnified Party reasonably concludes that there may be
legal defenses available to it and/or other Indemnified Parties which are different from or
additional to those available to the Indemnifying Party, the Indemnified Party shall have the right
to select separate counsel to assert such legal defenses and to otherwise participate in the defense
of such action on its own behalf. In such instances, the Indemnifying Party shall only be
required to pay the fees and expenses of one additional attorney to represent an Indemnified
Party or Indemnified Parties having such differing or additional legal defenses.
The Indemnified Party shall be entitled, at its expense, to participate in any such action,
suit or proceeding, the defense of which has been assumed by the Indemnifying Party.
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Notwithstanding the foregoing, the Indemnifying Party (i) shall not be entitled to assume and
control the defense of any such action, suit or proceedings if and to the extent that, in the opinion
of the Indemnified Party and its counsel, such action, suit or proceeding involves the potential
imposition of criminal liability on the Indemnified Party, or there exists a conflict or adversity of
interest between the Indemnified Party and the Indemnifying Party, in such event the
Indemnifying Party shall pay the reasonable expenses of the Indemnified Party, and (ii) shall not
settle or consent to the entry of any judgment in any action, suit or proceeding without the
consent of the Indemnified Party, which shall not be unreasonably withheld, conditioned or
delayed.
No Consequential Damages.
Other than the indemnity obligations set forth in Article 18.1, in no event shall any Party
be liable under any provision of this Agreement for any losses, damages, costs or expenses for
any special, indirect, incidental, consequential, or punitive damages, including but not limited to
loss of profit or revenue, loss of the use of equipment, cost of capital, cost of temporary
equipment or services, whether based in whole or in part in contract, in tort, including
negligence, strict liability, or any other theory of liability; provided, however, that damages for
which a Party may be liable to another Party under separate agreement will not be considered to
be special, indirect, incidental, or consequential damages hereunder.
Insurance.
Transmission Developer and Connecting Transmission Owner shall each, at its own
expense, procure and maintain in force throughout the period of this Agreement and until
released by the other Parties, the following minimum insurance coverages, with insurance
companies licensed to write insurance or approved eligible surplus lines carriers in the state of
New York with a minimum A.M. Best rating of A or better for financial strength, and an A.M.
Best financial size category of VIII or better:
18.3.1 Employers’ Liability and Workers’ Compensation Insurance providing statutory
benefits in accordance with the laws and regulations of New York State.
18.3.2 Commercial General Liability (“CGL”) Insurance including premises and
operations, personal injury, broad form property damage, broad form blanket contractual liability
coverage products and completed operations coverage, coverage for explosion, collapse and
underground hazards, independent contractors coverage, coverage for pollution to the extent
normally available and punitive damages to the extent normally available using Insurance
Services Office, Inc. Commercial General Liability Coverage (“ISO CG”) Form CG 00 01 04 13
or a form equivalent to or better than CG 00 01 04 13, with minimum limits of Two Million
Dollars ($2,000,000) per occurrence and Two Million Dollars ($2,000,000) aggregate combined
single limit for personal injury, bodily injury, including death and property damage.
18.3.3 Comprehensive Automobile Liability Insurance for coverage of owned and non-
owned and hired vehicles, trailers or semi-trailers designed for travel on public roads, with a
minimum, combined single limit of One Million Dollars ($1,000,000) per occurrence for bodily
injury, including death, and property damage.
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18.3.4 If applicable, the Commercial General Liability and Comprehensive Automobile
Liability Insurance policies should include contractual liability for work in connection with
construction or demolition work on or within 50 feet of a railroad, or a separate Railroad
Protective Liability Policy should be provided.
18.3.5 Excess Liability Insurance over and above the Employers’ Liability, Commercial
General Liability and Comprehensive Automobile Liability Insurance coverages, with a
minimum combined single limit of Twenty Million Dollars ($20,000,000) per occurrence and
Twenty Million Dollars ($20,000,000) aggregate. The Excess policies should contain the same
extensions listed under the Primary policies.
18.3.6 The Commercial General Liability Insurance, Comprehensive Automobile
Insurance and Excess Liability Insurance policies of Transmission Developer and Connecting
Transmission Owner shall name the other Party, its parent, associated and Affiliate companies
and their respective directors, officers, agents, servants and employees (“Other Party Group”) as
additional insureds using ISO CG Endorsements: CG 20 33 04 13, and CG 20 37 04 13 or CG 20
10 04 13 and CG 20 37 04 13 or equivalent to or better forms. All policies shall contain
provisions whereby the insurers waive all rights of subrogation in accordance with the provisions
of this Agreement against the Other Party Group and provide thirty (30) Calendar days advance
written notice to the Other Party Group prior to anniversary date of cancellation or any material
change in coverage or condition.
18.3.7 The Commercial General Liability Insurance, Comprehensive Automobile
Liability Insurance and Excess Liability Insurance policies shall contain provisions that specify
that the policies are primary and non-contributory. Transmission Developer and Connecting
Transmission Owner shall each be responsible for its respective deductibles or retentions.
18.3.8 The Commercial General Liability Insurance, Comprehensive Automobile
Liability Insurance and Excess Liability Insurance policies, if written on a Claims First Made
Basis, shall be maintained in full force and effect for at least three (3) years after termination of
this Agreement, which coverage may be in the form of tail coverage or extended reporting period
coverage if agreed by the Transmission Developer and Connecting Transmission Owner.
18.3.9 If applicable, Pollution Liability Insurance in an amount no less than $7,500,000
per occurrence and $7,500,000 in the aggregate. The policy will provide coverage for claims
resulting from pollution or other environmental impairment arising out of or in connection with
work performed on the premises by the other party, its contractors and and/or subcontractors.
Such insurance is to include coverage for, but not be limited to, cleanup, third party bodily injury
and property damage and remediation and will be written on an occurrence basis. The policy
shall name the Other Party Group as additional insureds, be primary and contain a waiver of
subrogation.
18.3.10
The requirements contained herein as to the types and limits of all
insurance to be maintained by the Transmission Developer and Connecting Transmission Owner
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are not intended to and shall not in any manner, limit or qualify the liabilities and obligations
assumed by those Parties under this Agreement.
18.3.11
Within ten (10) days following execution of this Agreement, and as soon
as practicable after the end of each fiscal year or at the renewal of the insurance policy and in
any event within ninety (90) days thereafter, Transmission Developer and Connecting
Transmission Owner shall provide certificate of insurance for all insurance required in this
Agreement, executed by each insurer or by an authorized representative of each insurer.
18.3.12
Notwithstanding the foregoing, Transmission Developer and Connecting
Transmission Owner may each self-insure to meet the minimum insurance requirements of
Articles 18.3.1 through 18.3.9 to the extent it maintains a self-insurance program; provided that,
such Party’s senior debt is rated at investment grade, or better, by Standard & Poor’s and that its
self-insurance program meets the minimum insurance requirements of Articles 18.3.1 through
18.3.9. In the event that a Party is permitted to self-insure pursuant to this Article 18.3.12, it
shall notify the other Party that it meets the requirements to self-insure and that its self-insurance
program meets the minimum insurance requirements in a manner consistent with that specified
in Articles 18.3.1 through 18.3.9 and provide evidence of such coverages. For any period of
time that a Party’s senior debt is unrated by Standard & Poor’s or is rated at less than investment
grade by Standard & Poor’s, such Party shall comply with the insurance requirements applicable
18.3.13
Transmission Developer and Connecting Transmission Owner agree to
report to each other in writing as soon as practical all accidents or occurrences resulting in
injuries to any person, including death, and any property damage arising out of this Agreement.
18.3.14
Subcontractors of each party must maintain the same insurance
requirements stated under Articles 18.3.1through 18.3.9 and comply with the Additional Insured
requirements herein. In addition, their policies must state that they are primary and non-
contributory and contain a waiver of subrogation.
ARTICLE 19. ASSIGNMENT
This Agreement may be assigned by a Party only with the written consent of the other
Parties; provided that a Party may assign this Agreement without the consent of the other Parties
to any Affiliate of the assigning Party with an equal or greater credit rating and with the legal
authority and operational ability to satisfy the obligations of the assigning Party under this
Agreement; provided further that a Party may assign this Agreement without the consent of the
other Parties in connection with the sale, merger, restructuring, or transfer of a substantial
portion or all of its assets, so long as the assignee in such a transaction directly assumes in
writing all rights, duties and obligations arising under this Agreement; and provided further that
the Transmission Developer shall have the right to assign this Agreement, without the consent of
the NYISO or Connecting Transmission Owner, for collateral security purposes to aid in
providing financing for the Transmission Project, provided that the Transmission Developer will
promptly notify the NYISO and Connecting Transmission Owner of any such assignment. Any
financing arrangement entered into by the Transmission Developer pursuant to this Article will
provide that prior to or upon the exercise of the secured party’s, trustee’s or mortgagee’s
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assignment rights pursuant to said arrangement, the secured creditor, the trustee or mortgagee
will notify the NYISO and Connecting Transmission Owner of the date and particulars of any
such exercise of assignment right(s) and will provide the NYISO and Connecting Transmission
Owner with proof that it meets the requirements of Articles 11.3 and 18.3. Any attempted
assignment that violates this Article is void and ineffective. Any assignment under this
Agreement shall not relieve a Party of its obligations, nor shall a Party’s obligations be enlarged,
in whole or in part, by reason thereof. Where required, consent to assignment will not be
unreasonably withheld, conditioned or delayed.
ARTICLE 20. SEVERABILITY
If any provision in this Agreement is finally determined to be invalid, void or
unenforceable by any court or other Governmental Authority having jurisdiction, such
determination shall not invalidate, void or make unenforceable any other provision, agreement or
covenant of this Agreement.
ARTICLE 21. COMPARABILITY
The Parties will comply with all applicable comparability and code of conduct laws, rules
and regulations, as amended from time to time.
ARTICLE 22. CONFIDENTIALITY
Confidentiality.
Certain information exchanged by the Parties during the term of this Agreement shall
constitute confidential information (“Confidential Information”) and shall be subject to this
Article 22.
If requested by a Party receiving information, the Party supplying the information shall
provide in writing, the basis for asserting that the information referred to in this Article warrants
confidential treatment, and the requesting Party may disclose such writing to the appropriate
Governmental Authority. Each Party shall be responsible for the costs associated with affording
confidential treatment to its information.
Term.
During the term of this Agreement, and for a period of three (3) years after the expiration
or termination of this Agreement, except as otherwise provided in this Article 22, each Party
shall hold in confidence and shall not disclose to any person Confidential Information.
Confidential Information.
The following shall constitute Confidential Information: (1) any non-public information
that is treated as confidential by the disclosing Party and which the disclosing Party identifies as
Confidential Information in writing at the time, or promptly after the time, of disclosure; or (2)
information designated as Confidential Information by the NYISO Code of Conduct contained in
Attachment F to the ISO OATT.
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Scope.
Confidential Information shall not include information that the receiving Party can
demonstrate: (1) is generally available to the public other than as a result of a disclosure by the
receiving Party; (2) was in the lawful possession of the receiving Party on a non-confidential
basis before receiving it from the disclosing Party; (3) was supplied to the receiving Party
without restriction by a third party, who, to the knowledge of the receiving Party after due
inquiry, was under no obligation to the disclosing Party to keep such information confidential;
(4) was independently developed by the receiving Party without reference to Confidential
Information of the disclosing Party; (5) is, or becomes, publicly known, through no wrongful act
or omission of the receiving Party or Breach of this Agreement; or (6) is required, in accordance
with Article 22.9 of this Agreement, Order of Disclosure, to be disclosed by any Governmental
Authority or is otherwise required to be disclosed by law or subpoena, or is necessary in any
legal proceeding establishing rights and obligations under this Agreement. Information
designated as Confidential Information will no longer be deemed confidential if the Party that
designated the information as confidential notifies the other Party that it no longer is
confidential.
Release of Confidential Information.
No Party shall release or disclose Confidential Information to any other person, except to
its Affiliates (limited by FERC Standards of Conduct requirements), subcontractors, employees,
consultants, or to parties who may be considering providing financing to or equity participation
with Transmission Developer, or to potential purchasers or assignees of a Party, on a need-to-
know basis in connection with this Agreement, unless such person has first been advised of the
confidentiality provisions of this Article 22 and has agreed to comply with such provisions.
Notwithstanding the foregoing, a Party providing Confidential Information to any person shall
remain primarily responsible for any release of Confidential Information in contravention of this
Article 22.
Rights.
Each Party retains all rights, title, and interest in the Confidential Information that each
Party discloses to the other Party. The disclosure by each Party to the other Parties of
Confidential Information shall not be deemed a waiver by any Party or any other person or entity
of the right to protect the Confidential Information from public disclosure.
No Warranties.
By providing Confidential Information, no Party makes any warranties or representations
as to its accuracy or completeness. In addition, by supplying Confidential Information, no Party
obligates itself to provide any particular information or Confidential Information to the other
Parties nor to enter into any further agreements or proceed with any other relationship or joint
venture.
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Standard of Care.
Each Party shall use at least the same standard of care to protect Confidential Information
it receives as it uses to protect its own Confidential Information from unauthorized disclosure,
publication or dissemination. Each Party may use Confidential Information solely to fulfill its
obligations to the other Parties under this Agreement or its regulatory requirements, including the
ISO OATT and ISO Services Tariff. The NYISO shall, in all cases, treat the information it
receives in accordance with the requirements of Attachment F to the ISO OATT.
Order of Disclosure.
If a court or a Government Authority or entity with the right, power, and apparent
authority to do so requests or requires any Party, by subpoena, oral deposition, interrogatories,
requests for production of documents, administrative order, or otherwise, to disclose Confidential
Information, that Party shall provide the other Parties with prompt notice of such request(s) or
requirement(s) so that the other Parties may seek an appropriate protective order or waive
compliance with the terms of this Agreement. Notwithstanding the absence of a protective order
or waiver, the Party may disclose such Confidential Information which, in the opinion of its
counsel, the Party is legally compelled to disclose. Each Party will use Reasonable Efforts to
obtain reliable assurance that confidential treatment will be accorded any Confidential
Information so furnished.
Termination of Agreement.
Upon termination of this Agreement for any reason, each Party shall, within ten (10)
Calendar Days of receipt of a written request from the other Parties, use Reasonable Efforts to
destroy, erase, or delete (with such destruction, erasure, and deletion certified in writing to the
other Parties) or return to the other Parties, without retaining copies thereof, any and all written
or electronic Confidential Information received from the other Parties pursuant to this
Agreement.
Remedies.
The Parties agree that monetary damages would be inadequate to compensate a Party for
another Party’s Breach of its obligations under this Article 22. Each Party accordingly agrees
that the other Parties shall be entitled to equitable relief, by way of injunction or otherwise, if the
first Party Breaches or threatens to Breach its obligations under this Article 22, which equitable
relief shall be granted without bond or proof of damages, and the receiving Party shall not plead
in defense that there would be an adequate remedy at law. Such remedy shall not be deemed an
exclusive remedy for the Breach of this Article 22, but shall be in addition to all other remedies
available at law or in equity. The Parties further acknowledge and agree that the covenants
contained herein are necessary for the protection of legitimate business interests and are
reasonable in scope. No Party, however, shall be liable for indirect, incidental, or consequential
or punitive damages of any nature or kind resulting from or arising in connection with this
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Disclosure to FERC, its Staff, or a State.
Notwithstanding anything in this Article 22 to the contrary, and pursuant to 18 C.F.R.
section 1b.20, if FERC or its staff, during the course of an investigation or otherwise, requests
information from one of the Parties that is otherwise required to be maintained in confidence
pursuant to this Agreement or the ISO OATT, the Party shall provide the requested information
to FERC or its staff, within the time provided for in the request for information. In providing the
information to FERC or its staff, the Party must, consistent with 18 C.F.R. section 388.112,
request that the information be treated as confidential and non-public by FERC and its staff and
that the information be withheld from public disclosure. Parties are prohibited from notifying
the other Parties to this Agreement prior to the release of the Confidential Information to the
Commission or its staff. The Party shall notify the other Parties to the Agreement when it is
notified by FERC or its staff that a request to release Confidential Information has been received
by FERC, at which time the Parties may respond before such information would be made public,
pursuant to 18 C.F.R. section 388.112. Requests from a state regulatory body conducting a
confidential investigation shall be treated in a similar manner if consistent with the applicable
state rules and regulations. A Party shall not be liable for any losses, consequential or otherwise,
resulting from that Party divulging Confidential Information pursuant to a FERC or state
regulatory body request under this paragraph.
Required Notices Upon Requests or Demands for Confidential
Information
Except as otherwise expressly provided herein, no Party shall disclose Confidential
Information to any person not employed or retained by the Party possessing the Confidential
Information, except to the extent disclosure is (i) required by law; (ii) reasonably deemed by the
disclosing Party to be required to be disclosed in connection with a dispute between or among
the Parties, or the defense of litigation or dispute; (iii) otherwise permitted by consent of the
other Party, such consent not to be unreasonably withheld; or (iv) necessary to fulfill its
obligations under this Agreement, the ISO OATT or the ISO Services Tariff. Prior to any
disclosures of a Party’s Confidential Information under this subparagraph, or if any third party or
Governmental Authority makes any request or demand for any of the information described in
this subparagraph, the disclosing Party agrees to promptly notify the other Party in writing and
agrees to assert confidentiality and cooperate with the other Party in seeking to protect the
Confidential Information from public disclosure by confidentiality agreement, protective order or
other reasonable measures.
ARTICLE 23. TRANSMISSION DEVELOPER AND CONNECTING TRANSMISSION
OWNER NOTICES OF ENVIRONMENTAL RELEASES
Transmission Developer and Connecting Transmission Owner shall each notify the other
Party, first orally and then in writing, of the release of any Hazardous Substances, any asbestos
or lead abatement activities, or any type of remediation activities related to the Transmission
Project or Network Upgrade Facilities, each of which may reasonably be expected to affect the
other Party. The notifying Party shall: (i) provide the notice as soon as practicable, provided
such Party makes a good faith effort to provide the notice no later than twenty-four hours after
such Party becomes aware of the occurrence; and (ii) promptly furnish to the other Party copies
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of any publicly available reports filed with any Governmental Authorities addressing such
events.
ARTICLE 24. INFORMATION REQUIREMENT
Information Acquisition.
Connecting Transmission Owner and Transmission Developer shall each submit specific
information regarding the electrical characteristics of their respective facilities to the other, and
to NYISO, as described below and in accordance with Applicable Reliability Standards.
Information Submission Concerning the Network Upgrade Facilities.
The initial information submission by each of Connecting Transmission Owner and
Transmission Developer for the portion of the Network Upgrade Facilities for which each is
responsible shall occur no later than one hundred eighty (180) Calendar Days prior to Trial
Operation of the Network Upgrade Facilities and shall include New York State Transmission
System information necessary to allow the Transmission Developer to select equipment and meet
any system protection and stability requirements, unless otherwise mutually agreed to by the
Transmission Developer and Connecting Transmission Owner. On a quarterly basis Connecting
Transmission Owner and Transmission Developer shall each provide the other Parties a status
report on the construction and installation of the Network Upgrade Facilities for which it has
construction responsibility pursuant to Appendix A, including, but not limited to, the following
information: (1) progress to date; (2) a description of the activities since the last report; (3) a
description of the action items for the next period; and (4) the delivery status of equipment
ordered.
Updated Information Submission Concerning the Transmission Project.
The updated information submission by the Transmission Developer, including
manufacturer information, shall occur no later than one hundred eighty (180) Calendar Days
prior to the Trial Operation of the Transmission Project. Transmission Developer shall submit a
completed copy of the Transmission Project data requirements contained in Appendix 1 to the
Transmission Interconnection Procedures. It shall also include any additional information
provided to Connecting Transmission Owner for the Facilities Study. Information in this
submission shall be the most current Transmission Project design or expected performance data.
Information submitted for stability models shall be compatible with NYISO standard models. If
there is no compatible model, the Transmission Developer will work with a consultant mutually
agreed to by the Parties to develop and supply a standard model and associated information.
If the Transmission Developer’s data is different from what was originally provided to
Connecting Transmission Owner and NYISO pursuant to a Transmission Interconnection Study
agreement among Connecting Transmission Owner, NYISO and Transmission Developer and
this difference may be reasonably expected to affect the other Parties’ facilities or the New York
State Transmission System, but does not require the submission of a new Transmission
Interconnection Application, then NYISO will conduct appropriate studies to determine the
impact on the New York State Transmission System based on the actual data submitted pursuant
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to this Article 24.3. Such studies will provide an estimate of any additional modifications to the
New York State Transmission System or Network Upgrade Facilities based on the actual data
and a good faith estimate of the costs thereof. The Transmission Developer shall not begin Trial
Operation for the Transmission Project until such studies are completed. The Transmission
Developer shall be responsible for the cost of any modifications required by the actual data,
including the cost of any required studies.
Information Supplementation.
Prior to the In-Service Date, the Transmission Developer and Connecting Transmission
Owner shall supplement their information submissions described above in this Article 24 with
any and all “as-built” Transmission Project and Network Upgrade Facilities information or “as-
tested” performance information that differs from the initial submissions or, alternatively, written
confirmation that no such differences exist. The Transmission Developer shall conduct tests on
the Transmission Project as required by Good Utility Practice.
Subsequent to the In-Service Date, the Transmission Developer shall provide Connecting
Transmission Owner and NYISO any information changes concerning the Transmission Project
due to equipment replacement, repair, or adjustment. Connecting Transmission Owner shall
provide the Transmission Developer and NYISO any information changes concerning the
Network Upgrade Facilities due to equipment replacement, repair or adjustment in the directly
connected substation or any adjacent Connecting Transmission Owner substation that may affect
the Transmission Project’s equipment ratings, protection or operating requirements. The
Transmission Developer and Connecting Transmission Owner shall provide such information no
later than thirty (30) Calendar Days after the date of the equipment replacement, repair or
adjustment.
ARTICLE 25. INFORMATION ACCESS AND AUDIT RIGHTS
Information Access.
Each Party (“Disclosing Party”) shall make available to another Party (“Requesting
Party”) information that is in the possession of the Disclosing Party and is necessary in order for
the Requesting Party to: (i) verify the costs incurred by the Disclosing Party for which the
Requesting Party is responsible under this Agreement; and (ii) carry out its obligations and
responsibilities under this Agreement. The Parties shall not use such information for purposes
other than those set forth in this Article 25.1 of this Agreement and to enforce their rights under
this Agreement.
Reporting of Non-Force Majeure Events.
Each Party (the “Notifying Party”) shall notify the other Parties when the Notifying Party
becomes aware of its inability to comply with the provisions of this Agreement for a reason other
than a Force Majeure event. The Parties agree to cooperate with each other and provide
necessary information regarding such inability to comply, including the date, duration, reason for
the inability to comply, and corrective actions taken or planned to be taken with respect to such
inability to comply. Notwithstanding the foregoing, notification, cooperation or information
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provided under this Article shall not entitle the Party receiving such notification to allege a cause
for anticipatory breach of this Agreement.
Audit Rights.
Subject to the requirements of confidentiality under Article 22 of this Agreement, each
Party shall have the right, during normal business hours, and upon prior reasonable notice to
another Party, to audit at its own expense the other Party’s accounts and records pertaining to the
other Party’s performance or satisfaction of its obligations under this Agreement. Such audit
rights shall include audits of the other Party’s costs, calculation of invoiced amounts, and each
Party’s actions in an Emergency or Emergency State. Any audit authorized by this Article shall
be performed at the offices where such accounts and records are maintained and shall be limited
to those portions of such accounts and records that relate to the Party’s performance and
satisfaction of obligations under this Agreement. Each Party shall keep such accounts and
records for a period equivalent to the audit rights periods described in Article 25.4 of this
Agreement.
Audit Rights Periods.
25.4.1 Audit Rights Period for Construction-Related Accounts and Records.
Accounts and records related to the design, engineering, procurement, and construction of
the Network Upgrade Facilities shall be subject to audit for a period of twenty-four months
following Connecting Transmission Owner’s issuance of a final invoice in accordance with
25.4.2 Audit Rights Period for All Other Accounts and Records.
Accounts and records related to a Party’s performance or satisfaction of its obligations
under this Agreement other than those described in Article 25.4.1 of this Agreement shall be
subject to audit as follows: (i) for an audit relating to cost obligations, the applicable audit rights
period shall be twenty-four months after the auditing Party’s receipt of an invoice giving rise to
such cost obligations; and (ii) for an audit relating to all other obligations, the applicable audit
rights period shall be twenty-four months after the event for which the audit is sought.
Audit Results.
If an audit by a Party determines that an overpayment or an underpayment has occurred, a
notice of such overpayment or underpayment shall be given to the other Party together with
those records from the audit which support such determination.
ARTICLE 26. SUBCONTRACTORS
General.
Nothing in this Agreement shall prevent a Party from utilizing the services of any
subcontractor as it deems appropriate to perform its obligations under this Agreement; provided,
however, that each Party shall require its subcontractors to comply with all applicable terms and
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conditions of this Agreement in providing such services and each Party shall remain primarily
liable to the other Parties for the performance of such subcontractor.
Responsibility of Principal.
The creation of any subcontract relationship shall not relieve the hiring Party of any of its
obligations under this Agreement. The hiring Party shall be fully responsible to the other Parties
for the acts or omissions of any subcontractor the hiring Party hires as if no subcontract had been
made; provided, however, that in no event shall the NYISO or Connecting Transmission Owner
be liable for the actions or inactions of the Transmission Developer or its subcontractors with
respect to obligations of the Transmission Developer under Article 5 of this Agreement. Any
applicable obligation imposed by this Agreement upon the hiring Party shall be equally binding
upon, and shall be construed as having application to, any subcontractor of such Party.
No Limitation by Insurance.
The obligations under this Article 26 will not be limited in any way by any limitation of
subcontractor’s insurance.
ARTICLE 27. DISPUTES
Submission.
In the event any Party has a dispute, or asserts a claim, that arises out of or in connection
with this Agreement or its performance (a “Dispute”), such Party shall provide the other Parties
with written notice of the Dispute (“Notice of Dispute”). Such Dispute shall be referred to a
designated senior representative of each Party for resolution on an informal basis as promptly as
practicable after receipt of the Notice of Dispute by the other Parties. In the event the designated
representatives are unable to resolve the Dispute through unassisted or assisted negotiations
within thirty (30) Calendar Days of the other Parties’ receipt of the Notice of Dispute, such
Dispute may, upon mutual agreement of the Parties, be submitted to arbitration and resolved in
accordance with the arbitration procedures set forth below. In the event the Parties do not agree
to submit such Dispute to arbitration, each Party may exercise whatever rights and remedies it
may have in equity or at law consistent with the terms of this Agreement.
External Arbitration Procedures.
Any arbitration initiated under this Agreement shall be conducted before a single neutral
arbitrator appointed by the Parties. If the Parties fail to agree upon a single arbitrator within ten
(10) Calendar Days of the submission of the Dispute to arbitration, each Party shall choose one
arbitrator who shall sit on a three-member arbitration panel. In each case, the arbitrator(s) shall
be knowledgeable in electric utility matters, including electric transmission and bulk power
issues, and shall not have any current or past substantial business or financial relationships with
any party to the arbitration (except prior arbitration). The arbitrator(s) shall provide each of the
Parties an opportunity to be heard and, except as otherwise provided herein, shall conduct the
arbitration in accordance with the Commercial Arbitration Rules of the American Arbitration
Association (“Arbitration Rules”) and any applicable FERC regulations or RTO rules; provided,
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Arbitration Decisions.
Unless otherwise agreed by the Parties, the arbitrator(s) shall render a decision within
ninety (90) Calendar Days of appointment and shall notify the Parties in writing of such decision
and the reasons therefor. The arbitrator(s) shall be authorized only to interpret and apply the
provisions of this Agreement and shall have no power to modify or change any provision of this
Agreement in any manner. The decision of the arbitrator(s) shall be final and binding upon the
Parties, and judgment on the award may be entered in any court having jurisdiction. The
decision of the arbitrator(s) may be appealed solely on the grounds that the conduct of the
arbitrator(s), or the decision itself, violated the standards set forth in the Federal Arbitration Act
or the Administrative Dispute Resolution Act. The final decision of the arbitrator must also be
filed with FERC if it affects jurisdictional rates, terms and conditions of service, or Network
Upgrade Facilities.
Costs.
Each Party shall be responsible for its own costs incurred during the arbitration process
and for the following costs, if applicable: (1) the cost of the arbitrator chosen by the Party to sit
on the three member panel; or (2) one-third the cost of the single arbitrator jointly chosen by the
Parties.
Termination.
Notwithstanding the provisions of this Article 27, any Party may terminate this
Agreement in accordance with its provisions or pursuant to an action at law or equity. The issue
of whether such a termination is proper shall not be considered a Dispute hereunder.
ARTICLE 28. REPRESENTATIONS, WARRANTIES AND COVENANTS
General.
Each Party makes the following representations, warranties and covenants:
28.1.1
Good Standing.
Such Party is duly organized, validly existing and in good standing under the laws of the
state in which it is organized, formed, or incorporated, as applicable; that it is qualified to do
business in the state or states in which the Transmission Project and Network Upgrade Facilities
owned by such Party, as applicable, are located; and that it has the corporate power and authority
to own its properties, to carry on its business as now being conducted and to enter into this
Agreement and carry out the transactions contemplated hereby and perform and carry out all
covenants and obligations on its part to be performed under and pursuant to this Agreement.
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28.1.2 Authority.
Such Party has the right, power and authority to enter into this Agreement, to become a
Party hereto and to perform its obligations hereunder. This Agreement is a legal, valid and
binding obligation of such Party, enforceable against such Party in accordance with its terms,
except as the enforceability thereof may be limited by applicable bankruptcy, insolvency,
reorganization or other similar laws affecting creditors’ rights generally and by general equitable
principles (regardless of whether enforceability is sought in a proceeding in equity or at law).
28.1.3
No Conflict.
The execution, delivery and performance of this Agreement does not violate or conflict
with the organizational or formation documents, or bylaws or operating agreement, of such
Party, or any judgment, license, permit, order, material agreement or instrument applicable to or
binding upon such Party or any of its assets.
28.1.4
Consent and Approval.
Such Party has sought or obtained, or, in accordance with this Agreement will seek or
obtain, each consent, approval, authorization, order, or acceptance by any Governmental
Authority in connection with the execution, delivery and performance of this Agreement, and it
will provide to any Governmental Authority notice of any actions under this Agreement that are
required by Applicable Laws and Regulations.
ARTICLE 29. MISCELLANEOUS
Binding Effect.
This Agreement and the rights and obligations hereof, shall be binding upon and shall
inure to the benefit of the successors and permitted assigns of the Parties hereto.
Conflicts.
If there is a discrepancy or conflict between or among the terms and conditions of this
cover agreement and the Appendices hereto, the terms and conditions of this cover agreement
shall be given precedence over the Appendices, except as otherwise expressly agreed to in
writing by the Parties. As permitted by the foregoing, the Parties expressly agree that the terms
and conditions of the Appendices shall take precedence over the provisions of this cover
agreement in case of a discrepancy or conflict between or among the terms and conditions of
same.
Rules of Interpretation.
This Agreement, unless a clear contrary intention appears, shall be construed and
interpreted as follows: (1) the singular number includes the plural number and vice versa; (2)
reference to any person includes such person’s successors and assigns but, in the case of a Party,
only if such successors and assigns are permitted by this Agreement, and reference to a person in
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a particular capacity excludes such person in any other capacity or individually; (3) reference to
any agreement (including this Agreement), document, instrument or tariff means such
agreement, document, instrument, or tariff as amended or modified and in effect from time to
time in accordance with the terms thereof and, if applicable, the terms hereof; (4) reference to
any Applicable Laws and Regulations means such Applicable Laws and Regulations as
amended, modified, codified, or reenacted, in whole or in part, and in effect from time to time,
including, if applicable, rules and regulations promulgated thereunder; (5) unless expressly stated
otherwise, reference to any Article, Section or Appendix means such Article of this Agreement
or such Appendix to this Agreement, or such Section to the Transmission Interconnection
Procedures or such Appendix to the Transmission Interconnection Procedures, as the case may
be; (6) “hereunder”, “hereof’, “herein”, “hereto” and words of similar import shall be deemed
references to this Agreement as a whole and not to any particular Article or other provision
hereof or thereof; (7) “including” (and with correlative meaning “include”) means including
without limiting the generality of any description preceding such term; and (8) relative to the
determination of any period of time, “from” means “from and including”, “to” means “to but
excluding” and “through” means “through and including”.
Compliance.
Each Party shall perform its obligations under this Agreement in accordance with
Applicable Laws and Regulations, Applicable Reliability Standards, the ISO OATT and Good
Utility Practice. To the extent a Party is required or prevented or limited in taking any action by
such regulations and standards, such Party shall not be deemed to be in Breach of this Agreement
for its compliance therewith. When any Party becomes aware of such a situation, it shall notify
the other Parties promptly so that the Parties can discuss the amendment to this Agreement that is
appropriate under the circumstances.
Joint and Several Obligations.
Except as otherwise stated herein, the obligations of NYISO, Transmission Developer
and Connecting Transmission Owner are several, and are neither joint nor joint and several.
Entire Agreement.
Except as described in Section 7 of Appendix C, this Agreement, including all
Appendices and Schedules attached hereto, constitutes the entire agreement between the Parties
with reference to the subject matter hereof, and supersedes all prior and contemporaneous
understandings or agreements, oral or written, between the Parties with respect to the subject
matter of this Agreement. Except as described in Section 7 of Appendix C, there are no other
agreements, representations, warranties, or covenants which constitute any part of the
consideration for, or any condition to, either Party’s compliance with its obligations under this
Agreement.
No Third Party Beneficiaries.
This Agreement is not intended to and does not create rights, remedies, or benefits of any
character whatsoever in favor of any persons, corporations, associations, or entities other than the
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Parties, and the obligations herein assumed are solely for the use and benefit of the Parties, their
successors in interest and permitted their assigns.
Waiver.
The failure of a Party to this Agreement to insist, on any occasion, upon strict
performance of any provision of this Agreement will not be considered a waiver of any
obligation, right, or duty of, or imposed upon, such Party. Any waiver at any time by either
Party of its rights with respect to this Agreement shall not be deemed a continuing waiver or a
waiver with respect to any other failure to comply with any other obligation, right, duty of this
Agreement. Termination or Default of this Agreement for any reason by the Transmission
Developer shall not constitute a waiver of the Transmission Developer’s legal rights to obtain
Capacity Resource Interconnection Service and Energy Resource Interconnection Service from
the NYISO and Connecting Transmission Owner in accordance with the provisions of the ISO
OATT. Any waiver of this Agreement shall, if requested, be provided in writing.
Headings.
The descriptive headings of the various Articles of this Agreement have been inserted for
convenience of reference only and are of no significance in the interpretation or construction of
this Agreement.
Multiple Counterparts.
This Agreement may be executed in two or more counterparts, each of which is deemed
an original but all constitute one and the same instrument.
Amendment.
The Parties may by mutual agreement amend this Agreement, by a written instrument
duly executed by all three of the Parties.
Modification by the Parties.
The Parties may by mutual agreement amend the Appendices to this Agreement, by a
written instrument duly executed by all three of the Parties. Such an amendment shall become
effective and a part of this Agreement upon satisfaction of all Applicable Laws and Regulations.
Reservation of Rights.
NYISO and Connecting Transmission Owner shall have the right to make unilateral
filings with FERC to modify this Agreement with respect to any rates, terms and conditions,
charges, classifications of service, rule or regulation under section 205 or any other applicable
provision of the Federal Power Act and FERC’s rules and regulations thereunder, and
Transmission Developer shall have the right to make a unilateral filing with FERC to modify this
Agreement pursuant to section 206 or any other applicable provision of the Federal Power Act
and FERC’s rules and regulations thereunder; provided that each Party shall have the right to
protest any such filing by another Party and to participate fully in any proceeding before FERC
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in which such modifications may be considered. Nothing in this Agreement shall limit the rights
of the Parties or of FERC under sections 205 or 206 of the Federal Power Act and FERC’s rules
and regulations thereunder, except to the extent that the Parties otherwise mutually agree as
provided herein.
No Partnership.
This Agreement shall not be interpreted or construed to create an association, joint
venture, agency relationship, or partnership among the Parties or to impose any partnership
obligation or partnership liability upon any Party. No Party shall have any right, power or
authority to enter into any agreement or undertaking for, or act on behalf of, or to act as or be an
agent or representative of, or to otherwise bind, any other Party.
Other Transmission Rights.
Notwithstanding any other provision of this Agreement, nothing herein shall be construed
as relinquishing or foreclosing any rights, including but not limited to firm transmission rights,
capacity rights, or transmission congestion rights that the Transmission Developer shall be
entitled to, now or in the future under any other agreement or tariff as a result of, or otherwise
associated with, the transmission capacity, if any, created by the Transmission Project and
Network Upgrade Facilities.
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IN WITNESS WHEREOF, the Parties have executed this Agreement in duplicate originals,
each of which shall constitute and be an original effective Agreement between the Parties.
New York Independent System Operator, Inc.
By:
Name:
Title:
Date:
Consolidated Edison Company of New York, Inc.
By:
Name: Walter Alvarado
Title: Vice President of Systems and Transmission Operations
Date:
New York Transco, LLC
By:
By: ____________________________
Name: Paul Haering______________
Title: Vice President of Capital Investment
Date: ____________________________
Name: Victor Mullin__________________
Title: President_______________________
Date:
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APPENDICES
Appendix A
Network Upgrade Facilities
Appendix B
Milestones
Appendix C
Interconnection Details
Appendix D
Security Arrangements Details
Appendix E-1
Initial Synchronization Date
Appendix E-2
In-Service Date
Appendix F
Addresses for Delivery of Notices and Billings
SERVICE AGREEMENT NO. 2734
APPENDIX A
NETWORK UPGRADE FACILITIES
I.
Network Upgrade Facilities for Connecting Transmission Owner’s Transmission
System
The Transmission Project, which is described in Appendix C, will interconnect to the
New York State Transmission System at existing transmission facilities owned and operated by
the Connecting Transmission Owner, as shown in Figure A-1 in this Appendix A. A portion of
the Transmission Project will interconnect with the Connecting Transmission Owner’s Line 398
345 kV transmission line (“Line 398”). This portion of the Transmission Project is described in
Section II of this Appendix A and shown in Figure C-2 in Appendix C to this Agreement. The
Facilities Study identified the Network Upgrade Facilities that are described in Section III of this
Appendix A that are required to reliably interconnect the Transmission Project with Line 398.
The Transmission Developer’s and Connecting Transmission Owner’s responsibilities
concerning these Network Upgrade Facilities are set forth in this Appendix A and are in
accordance with the terms of this Agreement.
Pursuant to Section 22.10 of Attachment P to the NYISO OATT, the Connecting
Transmission Owner and Transmission Developer entered into a Master Services Agreement
(MSA) with Transaction Form 3 (TF #3), which addresses the engineering design of the Network
Upgrade Facilities as identified in Section III.1 of this Appendix A. The procurement of the
equipment will be performed by Transmission Developer with Connecting Transmission
Owner’s review and approval in accordance with this Agreement.
Portions of the Transmission Project will separately interconnect to other Connecting
Transmission Owner’s transmission facilities, which interconnection requires certain Network
Upgrade Facilities at the Connecting Transmission Owner’s Pleasant Valley 345 kV Substation
and Transmission Developer’s Knickerbocker Substation, along with relay testing at the
Connecting Transmission Owner’s Pleasant Valley 345 kV and Cricket Valley Substations.
These Network Upgrade Facilities are detailed in the separate Transmission Project
Interconnection Agreement among the NYISO, Connecting Transmission Owner, and
Transmission Developer dated as of October 8, 2021 with Service Agreement No. 2654.
Connecting Transmission Owner’s and Transmission Developer’s responsibilities concerning
this separate interconnection and the related Network Upgrade Facilities are set forth in such
other Transmission Project Interconnection Agreement.
II.
Transmission Project Interconnecting with Connecting Transmission Owner’s Line
398
As part of the Transmission Project described in Appendix C, Transmission Developer is
constructing a phase angle regulator (“PAR”) substation in the Town of Dover, Dutchess
County, New York (“Dover PAR Substation”). The Dover PAR Substation is located less than
one half mile south of Connecting Transmission Owner’s right of way for Connecting
Transmission Owner’s existing transmission Line 398 that runs between Connecting
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Transmission Owner’s Cricket Valley Substation and the Long Mountain Substation (owned by
Eversource) located in Milford, Connecticut.
The impacts of the Network Upgrade Facilities on the relay settings at the Long
Mountain Substation are subject to a separate Facilities Study Report performed by ISO New
England and Eversource. Transmission Developer shall be responsible for complying with ISO
New England requirements to address any impacts identified at the Long Mountain Substation.
Transmission Developer will own and operate the Dover PAR Substation, the PARs at
the Dover PAR Substation, and the line segment between the Dover PAR Substation and the
Point of Interconnection (“POI”)/Point of Change of Ownership (“PCO”), which are defined in
Appendix C. The Dover PAR Substation is a greenfield site, air insulated substation (“AIS”)
arrangement and will operate at 345 kV nominal. The Dover PAR Substation will intercept the
existing 345 kV circuit 398.
III.
Network Upgrade Facilities on Connecting Transmission Owner’s Transmission
System Identified for the Transmission Project
1. Network Upgrade Facilities on Connecting Transmission Owner’s Line 398
Transmission Developer will design, procure, construct, and install the Network Upgrade
Facilities described in this Section III.1 of Appendix A in accordance with the requirements in
Article 5.2 of this Agreement and the following requirements to the extent not inconsistent with
the terms of this Agreement, the NYISO OATT, or ISO Procedures: Applicable Laws and
Regulations, the New York State Public Service Commission (“NYPSC”) Order Granting
Certificate of Environmental Compatibility and Public Need, issued and effective, April 20, 2016
(the “Certificate”), and all follow up approvals by the NYPSC, including any approved
Environmental Management and Construction Plan (the “EM&CP”), all approved modifications
to the Certificate and/or the EM&CP, Connecting Transmission Owner’s NERC/CIP risk
management and/or compliance plans, and the applicable requirements and standards of the
Connecting Transmission Owner provided in accordance with Section 6 of Appendix C.
Transmission Developer’s contractor performing this work shall be from the Connecting
Transmission Owner’s list of approved contractors.
Specifically, Transmission Developer will design, procure, construct, and install the
following Network Upgrade Facilities:
A) Line 398 Structures:
• Remove existing lattice tower (L-61) and replace with new steel monopole;
• Install a new double circuit, steel monopole (#L61-1); and
• Reinforce existing H-Frame structures (#62).
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• Splice the existing OPGW from Cricket Valley to Long Mountain at the newly
proposed transmission tower L-61-1 between transmission towers L-61 and L-62;
and
• Connect splices to new Dover PAR Substation, effectively creating 2 fiber paths –
one from Cricket Valley to Dover PAR and one from Dover PAR to Long
Mountain.
B) Bifurcating and Reconductoring Line 398:
• Reconductor segment between L-61 and L-61-1 to be redesignated Y-17;
• Install new segment between L-61-1 and the POI/PCO at the Dover PAR
Substation (West), to be redesignated Y-17;
• Reconductor segment between L-62 and L-61-1;
• Install new segments between L-61-1 and the POI/PCO at the Dover PAR
Substation (East);
• Modify/install OPGW / ADSS fiber as required by final design including, but not
limited to installing ADSS cable from Dover to Cricket Valley Substation and
testing of the cables; and
• Revenue grade metering associated with the PAR’s when in service.
Transmission Developer will be responsible for performing the reconductoring and
replacement of shield wire with optical ground wire (“OPGW”) with 72 fibers of Line 398
identified above (“New York Line 398 Reconductoring”), which line segment will consist of
twin-bundled 795 kcmil ACSS Mallard conductor and one (1) shield wires and one (1) OPGW
with 72 fibers as necessary to connect the Dover PAR Substation.
2. Network Upgrade Facilities at Cricket Valley Substation – Relay Protection
Connecting Transmission Owner will design, procure, construct and install, as required,
the Network Upgrade Facilities at the Cricket Valley Substation to accommodate the
modification of the Line 398, which major equipment shall consist of the following:
• The existing SEL-411L (11L-1/398) shall be reused as first line current differential
protection, utilizing OPGW and dark fiber for route 1 and route 2 communications
respectively;
• The existing second line SEL-421 (11L-2/398) relay will be removed and replaced by
a SEL-311L (11L-2/398**) current differential relay, utilizing fiber communication
and OPGW for route 1 and route 2 communications respectively. An SEL field
representative will be required to assist on site;
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** feeder designation subject to change
• The existing SEL-487B (11B-2) shall be reused for second line bus differential
protection;
• Support testing of OPGW and ADSS fiber cables at the Cricket Valley Substation;
and
• Install/test fiber jumpers inside Cricket Valley Substation.
Connecting Transmission Owner shall perform all final acceptance inspections and testing at the
Cricket Valley Substation.
IV.
Interconnection to and Network Upgrade Facilities for Other Connecting
Transmission Owners’ Transmission Systems
A. Niagara Mohawk Power Corporation d/b/a National Grid
Portions of the Transmission Project will interconnect to the New York State
Transmission System at existing transmission facilities owned and operated by National Grid,
which is also a Connecting Transmission Owner for the Transmission Project. The Facilities
Study identified certain Network Upgrade Facilities at National Grid’s Schodack 115 kV
Substation, Greenbush 115 kV Substation, Valkin 115 kV Substation, Hudson 115 kV
Substation, New Scotland Substation and Alps Substation, along with upgrades at the Blue
Stores 115 kV tap, Buckley Corners 115 kV tap, Fort Orange 115 kV tap, LaFarge 115 kV Tap,
ADM Milling 115 kV tap, Hudson 115 kV tap, line 14N interconnection point, and Valkin 115
kV tap, which Network Upgrade Facilities are required to reliably interconnect the Transmission
Project to National Grid’s system. The Transmission Developer, National Grid, and the NYISO
have entered into a separate Transmission Project Interconnection Agreement concerning the
interconnection of the Transmission Project to National Grid’s facilities and the construction or
installation of the related Network Upgrade Facilities on National Grid’s facilities.
B. New York State Electric & Gas Corporation
Portions of the Transmission Project will interconnect to the New York State
Transmission System at existing transmission facilities owned and operated by New York State
Electric & Gas Corporation (“NYSEG”), which is also a Connecting Transmission Owner for the
Transmission Project. The draft NYSEG Facilities Study identified certain Network Upgrade
Facilities at NYSEG’s Fall Park 115 kV Substation, Craryville 115 kV Substation, Klinekill
115/34.5 kV Substation, and Coopers Corner 345 kV Substation that are required to reliably
interconnect the Transmission Project to NYSEG’s system. The Transmission Developer,
NYSEG, and the NYISO have entered into a separate Transmission Project Interconnection
Agreement concerning the interconnection of the Transmission Project to NYSEG’s facilities
and the construction or installation of the related Network Upgrade Facilities on NYSEG’s
facilities.
C. Central Hudson Gas & Electric Corporation
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Portions of the Transmission Project will interconnect to the New York State
Transmission System at existing transmission facilities owned and operated by Central Hudson
Gas & Electric Corporation (“Central Hudson”), which is also a Connecting Transmission
Owner for the Transmission Project. The Facilities Study identified certain Network Upgrade
Facilities at Central Hudson’s Milan 115 kV Substation, North Catskill Substation, Pleasant
Valley 115 kV Substation, Rock Tavern 345 kV and 115 kV Substations, and Roseton 345 kV
Substation that are required to reliably interconnect the Transmission Project to Central
Hudson’s system. The Transmission Developer, Central Hudson, and the NYISO have entered
into a separate Transmission Project Interconnection Agreement concerning the interconnection
of the Transmission Project to Central Hudson’s facilities and the construction or installation of
the related Network Upgrade Facilities on Central Hudson’s facilities.
D. Orange and Rockland Utilities, Inc.
Portions of the Transmission Project will interconnect to the New York State
Transmission System at existing transmission facilities owned and operated by Orange and
Rockland Utilities, Inc. (“O&R”), which is also a Connecting Transmission Owner for the
Transmission Project. The Facilities Study identified certain Network Upgrade Facilities at
O&R’s Sugarloaf 138 kV Substation that are required to reliably interconnect the Transmission
Project to O&R’s system. The Transmission Developer, O&R, and the NYISO have entered into
a separate Transmission Project Interconnection Agreement concerning the interconnection of
the Transmission Project to O&R’s facilities and the construction or installation of the related
Network Upgrade Facilities on O&R’s facilities.
V.
Affected System Upgrade Facilities
The Transmission Interconnection Studies for the Transmission Project identified New
York Power Authority (“NYPA”), Castleton Power, LLC (for the Fort Orange Substation),
Holcim (US) Inc. (for the LaFarge Substation), and ADM Milling Co. (for the ADM Milling
Substation) as Affected System Operators, which systems are impacted by the Transmission
Project. The Facilities Studies conducted for the Transmission Project identified certain
Network Upgrade Facilities required for these Affected Systems.
A. NYPA
The Transmission Interconnection Studies for the Transmission Project identified that
certain Network Upgrade Facilities at NYPA’s Dolson Ave. 345 kV Substation are required in
connection with the Transmission Project. This work will be performed in accordance with the
terms of an engineering, procurement, and construction agreement by and among the NYISO,
Transmission Developer, and NYPA. However, the NYISO reviewed a non-material
determination of Transmission Developer and determined that certain feeder re-ratings would not
result in any Network Upgrade Facilities at the NYPA substations, other than a relay setting
evaluation.
B. Fort Orange Substation
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SERVICE AGREEMENT NO. 2734
The Transmission Interconnection Studies for the Transmission Project identified that
modifications to the relay settings at the Fort Orange Substation are required in connection with
the Transmission Project. The relay resetting and drawing updates will be performed for the Fort
Orange Substation to reflect the new Line 14N Tap location in accordance with the terms of an
engineering, procurement, and construction agreement by and among the Transmission
Developer, Castleton Power, LLC, and the NYISO.
C. LaFarge Substation
The Transmission Interconnection Studies for the Transmission Project identified that
certain Network Upgrade Facilities at the LaFarge Substation are required in connection with the
Transmission Project. This work including, but not limited to, relay resetting, and drawing
updates will be performed for the LaFarge Substation to reflect the new Line 8 Tap location in
accordance with the terms of an engineering, procurement, and construction agreement by and
among the Transmission Developer, LaFarge, and the NYISO.
D. ADM Milling
The Transmission Interconnection Studies for the Transmission Project identified that
certain Network Upgrade Facilities at the ADM Milling Substation are required in connection
with the Transmission Project. This work will be performed in accordance with the terms of an
engineering, procurement, and construction agreement by and among the NYISO, Transmission
Developer, and ADM Milling. The work will include performance of calculations for the
resetting of relays, and the update to drawings to reflect the new line nomenclature.
VI. Work Responsibilities.
Transmission Developer shall design, procure, construct, and install the Network Upgrade
Facilities for which it is responsible as specified in Section III.1 of this Appendix A.
Transmission Developer will also complete testing and commissioning for the Dover PAR
Substation equipment and for the segment of conductor up to and including the POI /PCO.
Connecting Transmission Owner shall design, procure, construct, and install the Network
Upgrade Facilities for which it is responsible as specified in Section III.2 of this Appendix A.
Connecting Transmission Owner shall also provide electrical isolation on 345kV feeder #398 to
allow all work to safety proceed (isolation/grounds, wiring) for all work associated with
Connecting Transmission Owner’s equipment. In addition, Connecting Transmission Owner’s
System Operations Department shall coordinate with NYISO and Eversource and other
transmission operators, as may be necessary, to provide required isolation/protection at remote
ends. Connecting Transmission Owner will also complete pre-in-service testing and
commissioning for the NUFs that are to be transferred to the Connecting Transmission Owner,
and for the relays that may require resetting.
VII. Cost Estimates
Description
Estimated Cost
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SERVICE AGREEMENT NO. 2734
Network Upgrade Facilities
$13,550,000.00
Total $13.550,000.00
The following labor and material are excluded from the Facility Study cost estimates:
1. All environmental costs associated with the Transmission Developer’s Transmission Project,
including but not limited to any environmental remediation and environmental cleanup.
2. All costs associated with subsurface conditions.
3. Cost for tower stringing by Transmission Developer.
4. Any and all work inside the fence line of the Dover PAR Substation.
5. Permitting required for installation and/or replacement of new transmission towers.
Connecting Transmission Owner’s Cost Estimate Assumptions
1. Connecting Transmission Owner will remain the transmission owner for the entire length of
Feeder 398, excluding the portion within the fence line of Dover PAR Substation.
2. Transmission Developer will be the transmission owner of Dover PAR Substation.
3. Interconnection into Dover PAR Substation will not impact the existing established Feeder
398 ratings (normal, STE and LTE) and reliability criteria.
4. Costs to clear approximately 2.29 moderately wooded acres from the right-of-way for Feeder
398 to the fence line of Dover PAR Substation are included.
5. New right-of-way grading costs are included.
6. New access roads for new tower installations are included.
7. Relay protection man hours are based on the original relay installation work at the Cricket
Valley Substation and recent relay upgrade projects of similar nature.
8. New transmission tower are based on preliminary concept designs by Power Engineers dated
Jan. 25, 2021. Costs are based on recent installations during the construction of the Cricket
Valley Substation.
9. Transmission tower costs include grounding.
10. Transmission tower costs include construction of a work pad for future maintenance work.
11. Transmission tower costs include foundations, based on Connecting Transmission Owner’s
standards.
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SERVICE AGREEMENT NO. 2734
12. Contractor rates are based on prevailing wage rates for trades in Dutchess County.
13. Connecting Transmission Owner’s rates are based on the 2020 Accommodation Billing Rates
Schedule are subject to change.
14. Contractor Oversight Project Management and Inspection (“PM&I”) is based on 15% of total
contract man hours.
15. Two full time Substation Operators are included for the duration of the project to handle
work permits, site access and ops support.
IX.
Security
Pursuant to Article 11.4 of this Agreement, Transmission Developer will provide
Connecting Transmission Owner with Security, in the form of a Letter of Credit, in the amount
of $13,550,000.00, which reflects the estimated costs for the Network Upgrade Facilities.
Description
Estimated Cost
Network Upgrade Facilities per Facility Study Report $13,550,000.00
Required Security Deposit to be Posted
$13,550,000.00
Figure A-1 Post Project Diagram
[CONTAINS CEII – THIS PAGE REMOVED FROM PUBLIC VERSION]
A-8
SERVICE AGREEMENT NO. 2734
1. Milestones
APPENDIX B
The following milestones shall apply to the engineering, procurement, and construction
activities related to the interconnection of the Transmission Project. With the exception of the
In-Service Dates and Commercial Operation Date, the timeframes projected for the milestones
are non-binding estimates; provided, however, that pursuant to Article 5.1 of the Agreement, the
Transmission Developer and the Connecting Transmission Owner shall each use Reasonable
Efforts to complete the Network Upgrade Facilities for which it has construction responsibility
by the dates set forth such milestones. The In-Service Dates and Commercial Operations Date
can only be extended in accordance with the requirements set forth in the NYISO OATT. The
actual dates for completion of the milestones are highly dependent upon system reliability, lead
times for the procurement of equipment and material, release of engineering packages by the
Transmission Developer and approval of the “issued for construction” packages by Connecting
Transmission Owner, the availability of labor, approved outage scheduling, receipt of regulatory
approvals, and the results of equipment testing.
MILESTONES
Milestone
Date
Responsible Party
1.
2.
Award order for Procurement of Complete
the Phase Angle Regulator
Transmission Developer
Transmission Developer
Start engineering of Dover PAR Complete
Substation and Transmission
Line to ROW
3.
Execute Interconnection
Agreement
Complete
Connecting
Transmission
Owner/Transmission
Developer/ NYISO
4.
5.
Post Security Deposit
Complete
Complete
Transmission Developer
Transmission Developer
Complete engineering for
Transmission Project principal
components *
6.
Complete 60% Transmission
Line design for submittal
Complete
Transmission Developer
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SERVICE AGREEMENT NO. 2734
Milestone
Date
Responsible Party
7.
8.
9.
Complete 90% Transmission
Line design for submittal
Complete
Complete
Complete
Transmission Developer
Complete 60% Design Package
- Relay Upgrades
Connecting
Transmission Owner
Complete Issued for
Construction Transmission Line
submittal
Transmission Developer
10.
11.
Commence substation and
transmission line site prep
August 2024
Complete
Transmission Developer
Transmission Developer
Complete Issued for
Construction Primary design
Substation submittal
12.
13.
Mobilize crews for the substation June 2024
build
Transmission Developer
Commence testing of the OPGW November 2024
after the installation of the new
tower L-61
Connecting
Transmission Owner/
Transmission Developer
14.
15.
16.
Complete 90% Design Package December 2024
- Relay Upgrades
Connecting
Transmission Owner
Complete Issue for Construction December 2024
Package - Relays Protection
Connecting
Transmission Owner
Commence testing of the
interception of Line 398 to create
Y17 and commission the Dover
PAR substation.
March 2025
May 2025
Connecting
Transmission Owner/
Transmission Developer
17.
Complete construction of
Network Upgrade Facilities as
defined in Appendix A Section
III
Transmission Developer
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SERVICE AGREEMENT NO. 2734
Milestone
Date
Responsible Party
18.
Complete any required relay
May 2025
Connecting
resetting as defined in Appendix
A
Transmission Owner
19.
20.
Complete testing and
commissioning
June 2025
June 2025
Connecting
Transmission Owner/
Transmission Developer
Dover In-Service Date
Connecting
Transmission
Owner/Transmission
Developer
21.
Completion of As Builts
September 2025
Connecting
Transmission
Owner/Transmission
Developer
22.
23.
Project closeout completed
Final invoicing
December 2025
December 2025
Connecting
Transmission Owner
Connecting
Transmission Owner
2. Prepayment for Work Performed by Connecting Transmission Owner
Included within the total cost estimates provided in Section VII of Appendix A are the
cost estimates for the Connecting Transmission Owner’s engineering, procurement, construction,
and associated services related to the Network Upgrades Facilities described in Section III of
Appendix A.
As required by Transaction Form #3, Transmission Developer has already paid to
Connecting Transmission Owner a deposit in the amount of two hundred fifty thousand dollars
($250,000.00). This amount is held by Connecting Transmission Owner in immediately
available funds in an account established by Connecting Transmission Owner in accordance with
its internal procedures (the “Engineering Disbursement Account”). The funds in the Engineering
Disbursement Account have been and shall continue to be drawn upon by Connecting
Transmission Owner to pay Connecting Transmission Owner for its performance of the
engineering services identified in Transaction Form #3 in accordance with the terms of that form.
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SERVICE AGREEMENT NO. 2734
The Connecting Transmission Owner’s procurement and construction services pursuant
to Section III of Appendix A to this Agreement and the related charges and costs under this
Agreement shall be treated in a similar fashion as the engineering services and will be
compensated through a separate disbursement account as set forth below.
The price for the services described in Section III of Appendix A shall be based on the
applicable hourly rates and other charges and costs set forth in the document entitled
Consolidated Edison Company of New York, Inc. 2022 Accommodation Billing Rates (“2022
Accommodation Billing Schedule”). Transmission Developer acknowledges and agrees that the
rates, charges, and costs set forth in the 2022 Accommodation Billing Schedule are subject to
periodic revision by Connecting Transmission Owner upon written notice to Transmission
Developer and that, after the date of the notice, the revised rates, charges, and costs referenced in
the notice shall be applicable to the provided services. The rates, charges, and costs set forth in
the 2022 Accommodation Billing Schedule, and any successor billing schedule, do not include
any charge or fee for any governmental or non-governmental permits, authorization, consents or
approvals that may be required in connection with the provided services. Transmission
Developer agrees to pay any such charges and fees and to reimburse Connecting Transmission
Owner for any such charges and fees that Connecting Transmission Owner is required to pay.
Transmission Developer will be required to provide to Connecting Transmission Owner a
deposit for Connecting Transmission Owner’s services under this Agreement in the amount of
two hundred fifty thousand dollars ($250,000.00) to be held by Connecting Transmission Owner
in immediately available funds in an account established by Connecting Transmission Owner in
accordance with its internal procedures (the “IA Disbursement Account”).
Connecting Transmission Owner shall issue invoices monthly and shall describe the
period covered by the invoice, the hours of services furnished during such period, and the
applicable hourly rates and reimbursable charges and costs. For purposes of the provided
services described in Section III of Appendix A, Connecting Transmission Owner is authorized
to withdraw the amount of each such invoice from the IA Disbursement Account as payment for
such invoice. If, at any time, the balance in the IA Disbursement Account falls below one
hundred thousand dollars ($100,000.00) or is insufficient to cover the amount of any invoice,
Transmission Developer shall replenish the IA Disbursement Account within five (5) Calendar
Days of receiving notice thereof by the payment of an additional amount equal to the greater of
(i) one hundred thousand dollars ($100,000.00) and (ii) the amount of any such insufficiency
plus an additional one hundred thousand dollars ($100,000.00).
Following the completion of the provided services, Connecting Transmission Owner
shall issue a final statement (the “Final Statement”) pursuant to Article 12.2 of this Agreement to
Transmission Developer showing the payments made by Transmission Developer concerning the
provided services and the amount of the invoices applied against the aggregate amount of such
payments. In the event that the balance of the IA Disbursement Account remaining after
application of all prior invoices is not sufficient to cover the amount of any outstanding invoice,
Transmission Developer shall, within thirty (30) Calendar Days of receipt of notice from the
Connecting Transmission Owner, pay the Connecting Transmission Owner the amount of such
insufficiency. To the extent that such remaining balance of the escrow fund exceeds the amount
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SERVICE AGREEMENT NO. 2734
necessary to cover all invoices payable to the Connecting Transmission Owner for purposes of
the provided services performed in accordance with Section III of Appendix A, Connecting
Transmission Owner shall, within thirty (30) Calendar Days of issuing the Final Statement to
Transmission Developer, pay Transmission Developer the amount of such balance.
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SERVICE AGREEMENT NO. 2734
APPENDIX C
INTERCONNECTION DETAILS
Description of the Transmission Project
The Transmission Project Q543 – the New York Energy Solution Project – was
1.
submitted by the Transmission Developer and National Grid and evaluated in the NYISO's
Public Policy Transmission Planning Process to address Segment B of the AC Transmission
Needs identified by the New York Public Service Commission in its December 17, 2015 order in
its Case No. 12-T-0502. The NYISO Board of Directors selected the Transmission Project as the
more efficient and cost-effective transmission solution to Segment B of the AC Transmission
Needs on April 8, 2019. Transmission Developer and National Grid entered into the
Development Agreement with the NYISO for purposes of constructing the Transmission Project
and placing it in-service to satisfy the Public Policy Transmission Need. National Grid
subsequently assigned its rights, duties, and obligations under the Development Agreement to
Transmission Developer on March 10, 2020, giving Transmission Developer sole rights to the
development of the Transmission Project. The Transmission Developer will develop the
Transmission Project in accordance with the terms of the Development Agreement.
The Transmission Project will be mainly located in three counties (Rensselaer, Columbia
and Dutchess) in the northern and mid-Hudson Valley, New York and includes the following
new facilities that will be constructed, owned, and operated by the Transmission Developer:
• A new 345 kV/115 kV double-circuit transmission line from a new Knickerbocker
switching station to the existing Pleasant Valley substation, and the rebuild of
approximately 2.1 miles of the 115 kV Blue Stores Tap;
• A new 345 kV Knickerbocker switching station at the proposed, greenfield site in
Schodack, New York, which will house a bypassable two step 16.67%, 33.33%, and 50%
series compensator for the new 345 kV Knickerbocker to Pleasant Valley transmission
line;
• Rebuild of the existing NYSEG Churchtown 115 kV switching station in Claverack, New
York, which will require decommissioning of the existing facility;
• Originally, the replacement of certain limiting element terminal equipment at the 345 kV
Roseton substation to increase the thermal rating of Roseton to East Fishkill 345 kV
transmission line #305 and the 345 kV New Scotland substation to increase the thermal
ratings on the New Scotland to Knickerbocker 345 kV transmission line #2A was
identified. However, a Non-Material Determination request was approved by the NYISO
which eliminated this work; and
• Two new 135 MVAR 345 kV capacitor banks installed at the new Van Wagner
Substation, which will intercept the existing 91 and 92 feeders. These existing feeder
segments between Van Wagner and the existing Pleasant Valley Substations will be
reconductored and redesignated as Y58 and Y59. The reconductored feeder segments
Y58 and Y59 will utilize the same take off structures as did previous feeders 91 and 92.
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SERVICE AGREEMENT NO. 2734
The Transmission Project includes additional upgrades to existing transmission facilities
as identified by the NYPSC in its December 17, 2015 order identifying the AC Transmission
Public Policy Transmission Needs.
• Terminal upgrades of certain limiting elements to the Rock Tavern 345 kV substation and
Coopers Corners substation;
• Note these originally identified upgrades to the Dolson Ave Station, NYPA East and
West Transition Stations, Rock Tavern 345kV, Roseton 345kV and Coopers Corners
Substations have been modified, which modifications the NYISO determined were not
material. This portion of the Transmission Project now involves a limited scope of NUFs
as compared to the original scope of work. These NUFs and modifications will be/ are
addressed in each of the Connecting Transmission Owner’s Transmission Project
Interconnection Agreements or EPC Agreements;
• Upgrades to the Shoemaker to Sugarloaf 138 kV facilities. These originally identified
upgrades to the Shoemaker to Sugarloaf 138kV facilities have been modified, which
modifications the NYISO determined were not material. This portion of the
Transmission Project now involves certain modifications to the Central Hudson 115 kV
Rock Tavern Substation connecting to the Orange & Rockland 138 kV Sugarloaf
Substation. These modifications will be addressed in each of the Connecting
Transmission Owner’s interconnection agreements; and
• Dover PAR Substation as described in Section II of Appendix A.
Additional details concerning the Transmission Project are set forth in Appendices A and
B of the Development Agreement.
2.
Description of the Points of Interconnection and Points of Change of Ownership
The Points of Interconnection (“POI”) and Points of Change in Ownership (“PCO”) are
identified in the table below and are also shown in the POI one line diagrams that follow. The
POI and PCO are the same location since the Transmission Project will not require any
Connecting Transmission Owner’s Attachment Facilities, as the transfer of ownership of the
feeders occurs at the tower insulator hardware. The POI/PCO locations are:
Transmission
Line
Line #
Designation
Structure
Number
where
Structure
Description
where
Description of Change in
Ownership
POI/PCO Is POI/PCO Is
Located Located
L61-2 Double circuit Transmission Developer
Connecting
Transmission
Owner to
Transmission
Developer
Transition
398 and
Y17
(see note in
Figure C-1
below)
Dead-end
Tower
ownership will include a
portion of the Y17 and 398
conductors within the Dover
PAR Substation, new take
C-2
SERVICE AGREEMENT NO. 2734
Transmission
Line
Line #
Designation
Structure
Number
where
Structure
Description
where
Description of Change in
Ownership
POI/PCO Is POI/PCO Is
Located Located
off structure, Insulators, and
hardware.
Connecting Transmission
Owner will continue to own
the Y17 (the segment
between the POI/PCO and
the Cricket Valley
Substation), and the 398 (the
segment between the POI
/PCO and the NY- CT state
border) feeders and
structures in the right of
way.
Connecting Transmission
Owner will own the OPGW
/ ADSS to the Dover Station
Control Enclosure Patch
Panel associated with both
the 398 (to the NY – CY
state border) and Y17 (the
segment to Cricket Valley
Substation) line segments
Figure C-1
C-3
SERVICE AGREEMENT NO. 2734
Figure C-2
[CONTAINS CEII – THIS PAGE REMOVED FROM PUBLIC VERSION]
3. Ownership/Control/Maintenance Responsibilities of Network Upgrade Facilities
Connecting Transmission Owner and Transmission Developer shall each design, procure,
construct, and install the Network Upgrade Facilities as specified in Section III of Appendix A to
this Agreement. Connecting Transmission Owner shall have physical ownership and control of
the Network Upgrade Facilities. Transmission Developer shall retain financial ownership of the
Network Upgrade Facilities to Connecting Transmission Owner and recover the costs associated
with the Network Upgrade Facilities in accordance with Transmission Developer’s FERC-
approved formula rate under the NYISO OATT.
4.
Transmission Developer Operating Requirements
Transmission Developer must comply with all applicable NYISO tariffs and procedures,
as amended from time to time.
5.
Special Protection Facilities
For purposes of Section 9.4.3 of this Agreement, the Connecting Transmission Owner
does not permit the installation of any special protection facilities on its transmission system.
6.
Connecting Transmission Owner’s Specifications.
Within 10 days of FERC’s acceptance of this Agreement, Connecting Transmission
Owner shall provide Transmission Developer all relevant standards and specifications that must
be complied with by Transmission Developer in the design, engineering, procurement and/or
construction of the Network Upgrade Facilities. Revisions to such specifications and standards
that occur after the 30% design packages have been reviewed and approved by the Connecting
Transmission Owner will not be imposed on the Network Upgrade Facilities to avoid the need
for any redesigns. In the event that a Party becomes aware that a safety standard, regulatory
requirement, and/or industry standard has been modified that could affect the safe or reliable
operations of the NUF, the Party shall notify the other Parties promptly, so that the Parties can
mutually agree upon an amendment, if needed, of this Agreement.
7.
Additional Agreements
(1) The Transmission Developer and the Connecting Transmission Owner will enter into: (i) a
Security Agreement described in subsection 7(2), (ii) agreements concerning the use and
occupancy of Connecting Transmission Owner’s real property described in subsection 7(3)
below, and (iii) a remote operations agreement described in subsection 7(5) (the “Additional
Agreements”). Except as otherwise described below, it is the belief and intention of the
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SERVICE AGREEMENT NO. 2734
Transmission Developer and the Connecting Transmission Owner that nothing in the Additional
Agreements conflict in any material way with this Agreement. If the Connecting
Transmission Owner or Transmission Developer becomes aware of a conflict, such party
shall notify the other party promptly so that the Connecting Transmission Owner and
Transmission Developer can mutually agree upon an amendment, if needed, of such
Additional Agreement. The NYISO is not a party to, has no responsibility under, and shall
have no liability in connection with these Additional Agreements or the Master Services
Agreement and transaction forms described in subsection 7(4) below.
(2) Security Agreement: The Transmission Developer and the Connecting Transmission Owner
will enter into a Security Agreement, as described in Article 11.4 of this Agreement.
(3) Other Agreements Concerning the Use and Occupancy of Connecting Transmission
Owner’s Real Property: Prior to any access by Transmission Developer or its
subcontractors onto the real property of Connecting Transmission Owner for the purposes
provided for in this Agreement, including any construction-related activity, Transmission
Developer and the Connecting Transmission Owner have entered or will enter into one or
more agreements acceptable to the Connecting Transmission Owner in its sole discretion, to
provide Transmission Developer access for the use and occupancy of Connecting
Transmission Owner’s real property (“U&O Agreements”). The U&O Agreements shall
exclusively govern the rights and obligations of Connecting Transmission Owner and
Transmission Developer arising out of the use of occupancy of the real property described
therein, including, but not limited to, Transmission Developer’s environmental obligations
and indemnity to the Connecting Transmission Owner for Hazardous Substances; provided,
however, that the U&O Agreements do not and shall not be construed to limit Connecting
Transmission Owner’s or Transmission Developer’s responsibilities, as applicable, under this
Agreement to satisfy applicable Environmental Laws, to provide notification concerning
environmental releases pursuant to Article 23 of this Agreement, and to indemnify the
NYISO pursuant to Article 18.1 in connection with the violation of any Environmental Law
or the release of any Hazardous Substance. As of the date of this Agreement, the following
U&O Agreements are in effect:
(a) License Agreement, dated as of March 16, 2022, between Transmission Developer and
Connecting Transmission Owner
(4) Transaction Forms: As described in Section I of Appendix A, the Connecting Transmission
Owner and Transmission Developer entered into a Master Services Agreement (“MSA”) with
Transaction Form 3 (“TF3”) to provide support services which enabled the Transmission
Developer to commence engineering activities related to Network Upgrade Facilities prior to the
Effective Date of this Agreement. For any engineering design work addressed in TF3 that the
Connecting Transmission Owner or Transmission Developer has commenced prior to the
Effective Date of the Agreement, the Connecting Transmission Owner or Transmission
Developer, as applicable, will continue and complete such work in accordance with the terms
specified in the MSA and TF3. For any engineering design work not addressed in TF3 or not
commenced as of the Effective Date of this Agreement, the Connecting Transmission Owner or
Transmission Developer, as applicable, shall perform such work in accordance with the terms of
this Agreement.
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SERVICE AGREEMENT NO. 2734
(5) Remote Operations Agreement: Connecting Transmission Owner and Transmission
Developer have negotiated an agreement to define the roles, responsibilities, and scope related to
Connecting Transmission Owner’s performance of certain remote operations and metering
responsibilities, which agreement shall not be inconsistent with the terms of this Agreement or
the NYISO OATT. This agreement has not been finalized as of the execution of this Agreement,
and is incorporated as an applicable agreement.
8.
Metering
The metering for the existing Line #398 is currently located at Connecting Transmission
Owner’s Cricket Valley Substation, and the Connecting Transmission Owner is the Metering
Authority. With the inclusion of the Dover PAR Substation on Line #398, Connecting
Transmission Owner: (i) will retain the existing revenue metering at the Cricket Valley
Substation for whenever the PARs are bypassed (out of service) and (ii) will use the new, to be
installed revenue meters at the Dover PAR Substation described in Section III.1 of Appendix A
whenever the PARs are in-service. The new revenue meter will be on the NYISO list of
approved meters.
Connecting Transmission Owner will remain the Metering Authority for either
configuration with the PARs in service or bypassed. Connecting Transmission Owner shall be
responsible for maintaining and troubleshooting daily communication with the revenue meter(s).
Transmission Developer shall provide access to Metering Equipment located within the Dover
PAR Substation to Connecting Transmission Owner’s metering technician for troubleshooting.
Transmission Developer shall not block, cover, or modify the area surrounding the Connecting
Transmission Owner’s revenue meter located within the Dover PAR Substation. When metering
communication depends on the communication media of the Transmission Developer, the
Transmission Developer shall prioritize the re-establishment of such communication to the
Connecting Transmission Owner’s Metering Authority.
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SERVICE AGREEMENT NO. 2734
APPENDIX D
SECURITY ARRANGEMENTS DETAILS
Infrastructure security of New York State Transmission System equipment and
operations and control hardware and software is essential to ensure day-to-day New York State
Transmission System reliability and operational security. The Commission will expect the
NYISO, all Transmission Owners, all Transmission Developers and all other Market Participants
to comply with the recommendations offered by the President’s Critical Infrastructure Protection
Board and, eventually, best practice recommendations from the electric reliability authority. All
public utilities will be expected to meet basic standards for system infrastructure and operational
security, including physical, operational, and cyber-security practices.
D-1
SERVICE AGREEMENT NO. 2734
APPENDIX E-1
INITIAL SYCHRONIZATION DATE
[Date]
New York Independent System Operator, Inc.
Attn: Vice President, Operations
10 Krey Boulevard
Rensselaer, NY 12144
Consolidated Edison Company of New York, Inc.
Attn: Walter Alvarado
Vice President, System and Transmission Operations
4 Irving Place
New York, NY 10004
Phone: (212-460-1210)
Email: alvaradow@coned.com
New York Transco, LLC.
Attn: Paul Haering
Vice President Capital Investments
One Hudson City Center
Hudson, NY 12534
Phone: (518) 444-4880
Email: paul.haering@nytransco.com
Re:
[Transmission Project/Network Upgrade Facilities]
Dear
:
On [Date] [Transmission Developer/Connecting Transmission Owner] initially synchronized
the [describe Transmission Project/Network Upgrade Facilities]. This letter confirms
[Transmission Developer/Connecting Transmission Owner]’s Initial Synchronization Date
was [specify].
Thank you.
[Signature]
[Transmission Developer/ Connecting Transmission Owner Representative]
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SERVICE AGREEMENT NO. 2734
APPENDIX E-2
IN-SERVICE DATE
[Date]
New York Independent System Operator, Inc.
Attn: Vice President, Operations
10 Krey Boulevard
Rensselaer, NY 12144
Consolidated Edison Company of New York, Inc.
Attn: Walter Alvarado
Vice President, System and Transmission Operations
4 Irving Place
New York, NY 10004
Phone: (212-460-1210)
Email: alvaradow@coned.com
New York Transco, LLC.
Attn: Paul Haering
Vice President Capital Investments
One Hudson City Center
Hudson, NY 12534
Phone: (518) 444-4880
Email: paul.haering@nytransco.com
Re:
_____________ [Transmission Project/Network Upgrade Facilities]
Dear __________________:
On [Date] [Transmission Developer/Connecting Transmission Owner] has completed Trial
Operation of [describe Transmission Project/Network Upgrade Facilities]. This letter
confirms that [describe Transmission Project/Network Upgrade Facilities] [has/have]
commenced service, effective as of [Date plus one day].
Thank you.
[Signature]
[Transmission Developer/Connecting Transmission Owner Representative]
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SERVICE AGREEMENT NO. 2734
APPENDIX F
ADDRESSES FOR DELIVERY OF NOTICES AND BILLINGS
Notices:
NYISO:
Before commercial operation of the Transmission Project:
New York Independent System Operator, Inc.
Attn: Vice President, System and Resource Planning
10 Krey Boulevard
Rensselaer, NY 12144
Phone: (518) 356-6000
Fax: (518) 356-6118
After commercial operation of the Transmission Project:
New York Independent System Operator, Inc.
Attn: Vice President, Operations
10 Krey Boulevard
Rensselaer, NY 12144
Phone: (518) 356-6000
Fax: (518) 356-6118
Connecting Transmission Owner:
Consolidated Edison Company of New York, Inc.
Attn: Walter Alvarado
Vice President, System and Transmission Operations
4 Irving Place
New York, NY 10004
Phone: (212-460-1210)
Email: alvaradow@coned.com
Transmission Developer:
New York Transco, LLC
Attn: Paul Haering
Vice President Capital Investments
One Hudson City Center
Hudson, NY 12534
Phone: (518) 444-4880
Email: paul.haering@nytransco.com
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SERVICE AGREEMENT NO. 2734
Billings and Payments:
Connecting Transmission Owner:
Consolidated Edison Company of New York, Inc.
Attn: Walter Alvarado
Vice President, System and Transmission Operations
4 Irving Place
New York, NY 10004
Phone: (212-460-1210)
Email: alvaradow@coned.com
Transmission Developer:
New York Transco, LLC
One Hudson City Center
Hudson, NY 12534
Attn: Vice President, Capital Investments
Phone: (518) 444-4880
Email: paul.haering@nytransco.com
Alternative Forms of Delivery of Notices (telephone, facsimile or email):
NYISO:
Before commercial operation of the Transmission Project:
New York Independent System Operator, Inc.
Attn: Vice President, System and Resource Planning
10 Krey Boulevard
Rensselaer, NY 12144
Phone: (518) 356-6000
Fax: (518) 356-6118
E-mail: interconnectionsupport@nyiso.com
After commercial operation of the Transmission Project:
New York Independent System Operator, Inc.
Attn: Vice President, Operations
10 Krey Boulevard
Rensselaer, NY 12144
Phone: (518) 356-6000
Fax: (518) 356-6118
E-mail: interconnectionsupport@nyiso.com
F-2
SERVICE AGREEMENT NO. 2734
Connecting Transmission Owner:
Consolidated Edison Company of New York, Inc.
Attn: Walter Alvarado
Vice President, System and Transmission Operations
4 Irving Place
New York, NY 10004
Phone: (212-460-1210)
Email: alvaradow@coned.com
Transmission Developer:
New York Transco, LLC
One Hudson City Center
Hudson, NY 12534
Attn: Vice President, Capital Investments
Phone: (518) 444-4880
Email: paul.haering@nytransco.com
F-3
Effective Date: 8/2/2024 - Docket #: ER24-2765-000 - Page 1