6.10.7.2.1 LSPG-NY Formula Rate Template

Index

Rate Formula Template

Utilizing FERC Form 1 Data Annual Transmission Revenue Requirement

For the 12 months ended 12/31/____

LS Power Grid New York Corporation I

Type of revenue requirement:  enter "P" if projected or "A" if actual: -

Enter the year to which the revenue requirement relates: -

Appendix A Main body of the Formula Rate

Attachment 1 Detail of the Revenue Credits

Attachment 2 Monthly Plant and Accumulated Depreciation balances

Attachment 3 Cost Support Detail

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

Attachment 5 True-Up calculations

Attachment 6a-6d Detail of the Accumulated Deferred Income Tax Balances

Attachment 7 Depreciation Rates

Attachment 8 Annual Excess or Deficient Accumulated Deferred IncomeTaxes Worksheet

LSPG-NY-501
 Appendix A
 Page 1 of 5

Formula Rate - Non-Levelized Rate Formula Template

Utilizing FERC Form 1 Data Annual Transmission Revenue Requirement

For the 12 months ended 12/31/____

LS Power Grid New York Corporation I

(1) (2) (3)

Line Allocated

No. Amount

1 GROSS REVENUE REQUIREMENT (page 3, line 79) 12 months $ -

REVENUE CREDITS Total Allocator

2 Total Revenue Credits Attachment 1, line 6 - TP 1.0000 -

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

4 True-up Adjustment (Attachment 5, line 3, col. G) - DA 1.00000 -

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

LSPG-NY-501
 Appendix A
 Page 2 of 5

Formula Rate - Non-Levelized Rate Formula Template

Utilizing FERC Form 1 Data

For the 12 months ended 12/31/____

LS Power Grid New York Corporation I

(1) (2) (3) (4) (5)

Transmission

Line Source Company Total Allocator (Col 3 times Col 4)

No. RATE BASE:

GROSS PLANT IN SERVICE (Note A)

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

7 Transmission (Attach 2, line 15) - TP 1.0000 -

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

9 General & Intangible (Attach 2, lines 45 + 60) - W/S 1.0000 -

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

column 3.  If line 7=0, GP=0)

11 ACCUMULATED DEPRECIATION & AMORTIZATION (Note A)

12 Production

13 Transmission

14 Distribution

15 General & Intangible

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

17 NET ACQUISITION ADJUSTMENT

18 Transmission

19 TOTAL NET ACQUISITION ADJUSTMENT

20 NET PLANT IN SERVICE

21 Production

22 Transmission

23 Distribution

24 General & Intangible

25 TOTAL NET PLANT (sum lines 21-24)

26 ADJUSTMENTS TO RATE BASE

(Attach 2, line 151)
(Attach 2, line 91)
(Attach 2, line 106)

(Attach 2, lines 121 + 136)

(Note B)

(Attach 2, line 166)

(line 6- line 12)
(line 7- line 13)
(line 8- line 14)
(line 9- line 15)

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

- NA

- TP

- NA

- W/S

-

- DA

-

-

-

-

-

- NP=

- -

1.0000 -

- -

1.0000 -

-

1.0000 -

-

-

-

-

-

- -

27 ADIT (Attach 6a proj., line 5, Column D or Attach 6c True-up - line 5, column D)  (Note C) - TP 1.0000 -

28 Account No. 255 (enter negative) (Note D) (Attach 3, line 169) (Note D) - NP - -

28a Excess / Deficient Accumulated Deferred Income Taxes (Attach 8, line 29) (Note F) - TP 1.0000 -

29 Unamortized Lumpsum Lease Payment Note G - DA 1.0000 -

30 Unfunded Reserves (enter negative) Note H - DA 1.0000 -

31 Unamortized Regulatory Assets (Attach 3, line 204, col. b) (Note I) - DA 1.0000 -

32 Unamortized Abandoned Plant (Attach 3, line 204, col. c) (Note J) - DA 1.0000 -

33 TOTAL ADJUSTMENTS  (sum lines 27-32) - -

34 LAND HELD FOR FUTURE USE Company records - TP 1.0000 -

35 WORKING CAPITAL  (Note K)

36 CWC (1/8 * (Line 48 less Line 47a) - -

37 Materials & Supplies (Attach 3, line 221, column c) - TP 1.0000 -

38 Prepayments (Account 165 - Note K) (Attach 3, line 189, column b) - GP - -

39 TOTAL WORKING CAPITAL (sum lines 36-38) - -

40 RATE BASE  (sum lines 25, 33, 34, & 39) - -

LSPG-NY-501
 Appendix A
 Page 3 of 5

Formula Rate - Non-Levelized Rate Formula Template

Utilizing FERC Form 1 Data

For the 12 months ended 12/31/____

LS Power Grid New York Corporation I

(1) (2) (3) (4) (5)

Transmission

Source Company Total Allocator (Col 3 times Col 4)

41 O&M

42 Transmission 321.112.b - TP= 1.0000 -

43 Less Account 565 321.96.b - TP= 1.0000 -

44 A&G 323.197.b - W/S 1.0000 -

45 Less EPRI & Reg. Comm. Exp. & Other  Ad. Note L, company records - DA 1.0000 -

46 Plus Transmission Related Reg. Comm.  Exp. Note L, company records - TP= 1.0000 -

47 Less Account 566 321.97.b - DA 1.0000 -

47a Amortization of Regulatory Assets company records - DA 1.0000 -

47b Account 566 excluding amort. of Reg Assets (line 47 less line 47a) - DA 1.0000 -

48 TOTAL O&M (sum lines 42, 44, 46, 47a, 47b less lines 43 & 45, 47) (Note L) - -

49 DEPRECIATION EXPENSE

50 Transmission 336.7.f (Note A) - TP 1.0000 -

51 General and Intangible 336.1.f + 336.10.f (Note A) - W/S 1.0000 -

52 Amortization of Abandoned Plant (Attach 3, line 205, column c) (Note J) - DA 1.0000 -

53 Amortization of Acquisition Adjustment (Attach 2, line 166) - DA 1.0000 -

54 TOTAL DEPRECIATION (Sum lines 50-52) - -

55 TAXES OTHER THAN INCOME TAXES  (Note M)

56 LABOR RELATED

57 Payroll 263.l - W/S 1.0000 -

58 Highway and vehicle 263.l - W/S 1.0000 -

59 PLANT RELATED

60 Property 263.l - GP - -

61 Gross Receipts 263.l - GP - -

62 Other 263.l - GP - -

63 TOTAL OTHER TAXES  (sum lines 57-62) - -

64 INCOME TAXES

65 T=1 - {[(1 - SIT) * (1 - FIT)] / (1 - SIT * FIT * p))} = (Note E) 0.00%

66 CIT=(T/1-T) * (1-(WCLTD/R)) = 0.00%

67 where WCLTD=(line 96) and R= (line 99)

68 and FIT, SIT, p, & n are as given in footnote E.

69 1 / (1 - T) = (T from line 65) -

70 Income Tax Calculation = line 66 * line 76 - -

71 Investment Tax Credit Amortization Adjustment (Attachment 3, line 174)  (Note D) - NP - -

72 Permanent Differences Tax Adjustment (Attach 3, line 207 * line 65) - NP - -

73 Excess/Deficient Deferred Taxes Adjustment Attach 8, line 58 (proj.), line 90 (actual)  Note F - NP - -

74 Total Income Taxes (Sum lines 72 to 73) - -

75 RETURN

76 [ Rate Base (line 40) * Rate of Return (line 99)] - -

77 Rev Requirement before Incentive Projects  (sum lines 48, 54, 63, 74, 76) - -

78 Incentive Return and Income Tax and Competitive Bid Concessions for Projects - DA 1.0000 -

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

79 Total Revenue Requirement  (sum lines 77 & 78) - -

LSPG-NY-501
 Appendix A
 Page 4 of 5

Formula Rate - Non-Levelized Rate Formula Template

Utilizing FERC Form 1 Data

For the 12 months ended 12/31/____

LS Power Grid New York Corporation I

SUPPORTING CALCULATIONS AND NOTES

80 TRANSMISSION PLANT INCLUDED IN ISO RATES

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

82 Less transmission plant excluded from ISO rates (Note N) -

83 Less transmission plant included in OATT Ancillary Services (Note N) -

84 Transmission plant included in ISO rates  (line 81 less lines 82 & 83) -

85 Percentage of transmission plant included in ISO Rates (line 84 divided by line 81) [If line 81 equal zero, enter 1) TP= 1.0000

86 WAGES & SALARY ALLOCATOR   (W&S)

87 Form 1 Reference $ TP Allocation

88 Production 354.20.b - - -

89 Transmission 354.21.b - 1.00 -

90 Distribution 354.23.b - - - W&S Allocator

91 Other 354.24,25,26.b - - - ($ / Allocation)

92 Total (sum lines 88-91) [TP equals 1 if there are no wages & salaries] - - = 1.0000 = WS

93 RETURN (R) (Notes O and P)

94

95 $ % Cost Weighted

96 Long Term Debt (Attach 3, line 229) (Note O) - 0.00% 0.00% 0.00% =WCLTD

97 Preferred Stock (Attach 3, line 230) (Note O) - 0.00% 0.00% 0.00%

98 Common Stock (Attach 3, line 231) (Note O, Note P) - 0.00% 0.00% 0.00%

99 Total (sum lines 96-98) - 0.00% =R

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

Non-incentive Incentive

Investments from Investments from

Attachment 4 Attachment 4

Source of Total Column (Note Q) (Note Q) Total

100 Net Transmission Plant in Service (Line 22 and Transmission CIACs) - - -

101 Unamortized Abandoned Plant (Line 32) - - -

102 Project Specific Regulatory Assets (Line 31) - - -

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

104 Return and Taxes (Lines 74 & 76) -

105 Total Revenue Credits -

106 Base Carrying Charge (used in Attach 4, Line 65) (Line 104 - Line 105)/ Line 103 0.00%

LSPG-NY-501
 Appendix A
 Page 5 of 5

SUPPORTING CALCULATIONS AND NOTES

Formula Rate - Non-Levelized Rate Formula Template

Utilizing FERC Form 1 Data

For the 12 months ended 12/31/____

LS Power Grid New York Corporation I

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

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

Note

Letter

A Balances exclude Asset Retirement Costs.

B No Acquisition Adjustment will be recovered until a filing requesting recovery is submitted to and approved by FERC under FPA Section 205.

C  The balances in Accounts 190, 281, 282 and 283 are allocated to transmission plant included in ISO rates based on company accounting records.  Accumulated deferred income tax amounts

associated with asset or liability accounts excluded from rate base do not affect rate base, such as ADIT related to asset retirement obligations and certain tax-related regulatory assets or liabilities.  To the extent that the normalization requirements apply to ADIT activity in the projected net revenue requirement calculation or the true-up adjustment calculation, the ADIT
amounts are computed in accordance with the proration formula of Treasury regulation Section 1.167(l)-1(h)(6) with averaging in accordance with IRC Section 168(i)(9)(B).  The remaining ADIT activity are averaged.  Work papers supporting the ADIT calculations will be posted with each projected net revenue requirement and/or Annual True-Up and included in the annual Informational Filing submitted to the Commission.

D  Investment tax credit (ITC) is recorded in accordance with the deferral method of accounting and any normalization requirements that relate to the eligibility to claim the credit or the

recapture of the credit.  The revenue requirement impact of any ITC amortization permitted to reduce income tax expense is determined as the amount of the Amortized Investment Tax Credit (266.8.f) multiplied by the applicable tax gross-up factor.

E  The composite income tax rate (T) applicable to each Rate Year (including both Annual Projections and True-Up Adjustments) is based on the Federal income tax rate (FIT),

the State income tax rate (SIT) and the percentage of federal income tax deductible for state income tax purposes (P).  If the utility is taxed in more than one state, it must attach a work paper showing the name of each state and how the blended or composite SIT was computed.

Inputs Required: Federal income tax rate (FIT) = 0.00%

Composite state income tax rate (SIT) = 0.00% (Attachment 3)

Percent of federal income tax deductible for state purposes (P) = 0.00%

For each Rate Year (including both Annual Projections and True-Up Adjustments) the statutory income tax rates utilized in the Formula Rate shall reflect the weighted average rates

actually in effect during the Rate Year.  For example, if the statutory tax rate is 10% from January 1 through June 30, and 5% from July 1 through December 31, such rates would be weighted 181/365 and 184/365, respectively, for a non-leap year.

F  Upon enactment of changes in tax law, ADIT balances are re-measured and adjusted in the Company’s books of account, resulting in excess or deficient accumulated deferred income tax

assets and liabilities.  Such excess or deficient ADIT attributable to assets or liabilities reflected in ISO rates and subsequent recoverable or refundable amortization will be based upon tax
records and be calculated and recorded in accordance with ASC 740 and any applicable normalization requirements of the taxing jurisdiction.  For each re-measurement of deferred taxes,
the amounts entered as Adjustments to Rate Base or a component of Income Taxes will be supported by work papers providing the balance for each taxing jurisdiction at the beginning

and end of the year, amortization for the year and any other information required to support compliance with any applicable normalization requirements.

G  In the event that transmission assets or right of ways involve a lumpsum upfront payment under a lease that qualifies as a capital lease, it will be amortized over the life of the lease to Account 567

and the unamortized balance will be included here. In the event such a lease involves monthly or annual payments, the payments will be booked to Account 567.

H Unfunded Reserves are customer contributed capital authorized by a regulatory agency.  Balances, if any, will be supported by a workpaper.

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

I Recovery of Regulatory Assets must be authorized by the Commission.

J Unamortized Abandoned Plant and Amortization of Abandoned Plant will be zero until the Commission accepts or approves recovery of the cost of Abandoned Plant.

K Cash Working Capital assigned to transmission is transmission-allocated O&M minus the amortization of any Regulatory Asset, divided by eight.

Prepayments are the electric related prepayments booked to Account No. 165 and reported on Pages 110-111 line 57 in the Form 1.

L  Line 45 removes EPRI Annual Membership Dues listed in Form 1 at 353.f, any EPRI Lobbying expenses included in line 42 of the template and all Regulatory Commission Expenses itemized at 351.h.

Line 45 removes all advertising included in Account 930.1, except safety, education or out-reach related advertising.

Line 45 removes all EEI and EPRI research, development and demonstration expenses.

Line 46 reflects all Regulatory Commission Expenses directly related to transmission service, ISO filings, or transmission siting itemized at 351.h Line 42 or Line 44 and thus Line 48 shall include any NYISO charges other than penalties, including but not limited to administrative costs.

M Includes only FICA, unemployment, highway, property, gross receipts, and other assessments charged in the current year.

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

step-up facilities, which are deemed to included in OATT ancillary services.  For these purposes, generation step-up

facilities are those facilities at a generator substation on which there is no through-flow when the generator is shut down.

O In accordance with the Settlement Agreement in Docket No. ER 20-716 approved June 17, 2021, the Base Return on Equity shall be 9.65% and no change in ROE may be made absent a filing with FERC under FPA Section 205 or 206.

P A hypothetical capital structure of 47% debt and 53% equity will be used until the entire Marcy to New Scotland 345 kV Upgrade Project is placed in-service.  After all facilities of the Marcy to New Scotland 345 kV

Upgrade Project are placed in- service, the lesser of a 52% equity ratio or the actual equity ratio will be used.

Q Non-incentive investments are investments without ROE incentives and incentive investments are investments with ROE incentives

Attachment 1 - Revenue Credit Workpaper*
LS Power Grid New York Corporation I

1

2

3

4

5

6

Note 1

Note 2

Note 3

Line No.
 1

1a
…
1x

2

3

4

5

6

7

8

9

9a
9b
9c
9d
9e
9f

9g
…
9x
10

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

Rent from FERC Form No. 1 -

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

Other Electric Revenues (Note 2) -

Professional Services -

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

Rent or Attachment Fees associated with Transmission Facilities -

Total Revenue Credits Sum lines 2-5 + line 1 -

All revenues booked to Account 454 that are derived from cost items classified as transmission-related will be included as a revenue credit.  All revenues booked to Account 456 (includes 456.1) that are derived from cost items classified as transmission-related, and are not derived from rates under this transmission formula rate will be included as a revenue credit.   Work papers will be included to properly classify revenues booked to these accounts to the transmission function.  A breakdown of all Account 454

revenues by subaccount will be provided below, and will be used to derive the proper calculation of revenue credits.  A breakdown of all Account 456 revenues by subaccount and customer will be provided and tabulated below, and will be used to develop the proper calculation of revenue credits.

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

All Account 454, 456, and 456.1 Revenues must be itemized below and tie to FERC Form No. 1 cites set forth below.

Accounts 456 and 456.1 (300.21.b plus 300.22.b) TOTAL NY-ISO Other 1 Other 2

- - - - -

- - - -

- - - -

- - - -

Total - - - -
Less:

Revenue for Demands in Divisor - - - -

Sub Total Revenue Credit - - - -

Prior Period Adjustments - - - -

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

Account 454 (300.19.b) $

- -

-

-

-

-

-

-

-
Total (must tie to 300.19.b)

-

Attachment 2 - Cost Support

LS Power Grid New York Corporation I

Plant in Service Worksheet (Note 2)

1 Calculation of Transmission  Plant In Service Source (Less ARO, see Note 1) Year Balance

2 December p206.58.b - -

3 January company records - -

4 February company records - -

5 March company records - -

6 April company records - -

7 May company records - -

8 June company records - -

9 July company records - -

10 August company records - -

11 September company records - -

12 October company records - -

13 November company records - -

14 December p207.58.g - -

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

16 Calculation of Distribution Plant In Service Source (Less ARO, see Note 1)

17 December p206.75.b - -

18 January company records - -

19 February company records - -

20 March company records - -

21 April company records - -

22 May company records - -

23 June company records - -

24 July company records - -

25 August company records - -

26 September company records - -

27 October company records - -

28 November company records - -

29 December p207.75.g - -

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

31 Calculation of Intangible Plant In Service Source (Less ARO, see Note 1)

32 December p204.5.b - -

33 January company records - -

34 February company records - -

35 March company records - -

36 April company records - -

37 May company records - -

38 June company records - -

39 July company records - -

40 August company records - -

41 September company records - -

42 October company records - -

43 November company records - -

44 December p205.5.g - -

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

46 Calculation of General Plant In Service Source (Less ARO, see Note 1)

47 December p206.99.b - -

48 January company records - -

49 February company records - -

50 March company records - -

51 April company records - -

52 May company records - -

53 June company records - -

54 July company records - -

55 August company records - -

56 September company records - -

57 October company records - -

58 November company records - -

59 December p207.99.g - -

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

61 Calculation of Production Plant In Service Source (Less ARO, see Note 1)

62 December p204.46b - -

63 January company records - -

64 February company records - -

65 March company records - -

66 April company records - -

67 May company records - -

68 June company records - -

69 July company records - -

70 August company records - -

71 September company records - -

72 October company records - -

73 November company records - -

74 December p205.46.g - -

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

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

Accumulated Depreciation Worksheet

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

77 Calculation of Transmission Accumulated Depreciation Source (Less ARO, see Note 1) Year Balance

78 December Prior year p219.25.c - -

79 January company records - -

80 February company records - -

81 March company records - -

82 April company records - -

83 May company records - -

84 June company records - -

85 July company records - -

86 August company records - -

87 September company records - -

88 October company records - -

89 November company records - -

90 December p219.25.c - -

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

92 Calculation of Distribution Accumulated Depreciation Source (Less ARO, see Note 1)

93 December Prior year p219.26.c - -

94 January company records - -

95 February company records - -

96 March company records - -

97 April company records - -

98 May company records - -

99 June company records - -

100 July company records - -

101 August company records - -

102 September company records - -

103 October company records - -

104 November company records - -

105 December p219.26.c - -

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

107 Calculation of Intangible Accumulated Amortization Source (Less ARO, see Note 1)

108 December Prior year p200.21.c - -

109 January company records - -

110 February company records - -

111 March company records - -

112 April company records - -

113 May company records - -

114 June company records - -

115 July company records - -

116 August company records - -

117 September company records - -

118 October company records - -

119 November company records - -

120 December p200.21.c - -

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

122 Calculation of General Accumulated Depreciation Source (Less ARO, see Note 1)

123 December Prior year p219.28.c - -

124 January company records - -

125 February company records - -

126 March company records - -

127 April company records - -

128 May company records - -

129 June company records - -

130 July company records - -

131 August company records - -

132 September company records - -

133 October company records - -

134 November company records - -

135 December p219.28.c - -

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

137 Calculation of Production Accumulated Depreciation Source (Less ARO, see Note 1)

138 December p219.20.c to 24.c (prior year) - -

139 January company records - -

140 February company records - -

141 March company records - -

142 April company records - -

143 May company records - -

144 June company records - -

145 July company records - -

146 August company records - -

147 September company records - -

148 October company records - -

149 November company records - -

150 December p219.20.c to 24.c - -

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

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

Acquisition Adjustment Worksheet

FERC 115 - FERC 406 -

Calculation of Transmission Acquisition Adj. Source Year FERC 114 - Balance Accumulated Amortization Net Balance   Amortization Exp

153 December company records - - - - -

154 January company records - - - - -

155 February company records - - - - -

156 March company records - - - - -

157 April company records - - - - -

158 May company records - - - - -

159 June company records - - - - -

160 July company records - - - - -

161 August company records - - - - -

162 September company records - - - - -

163 October company records - - - - -

164 November company records - - - - -

165 December company records - - - - -

166 Transmission Acquisition Adj. (sum lines 153-165) /13 - - - -

Note

1 Balances exclude Asset Retirement Costs.

2 For the initial rate year, capital balances that are typically based on a 13-month average will be divided by the number of months the rate is in effect.

Attachment 3 - Cost Support

LS Power Grid New York Corporation I

Numbering continues from Attachment 2 Beginning of Year End of Year Average Balance

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

168 Portion of Unamortized ITC Not Reflected in Rate Base (enter negative) - -

169 Portion of Unamortized ITC Reducing in Rate Base - - -

Jurisdiction 1 Jurisdiction 2 Total

170 Investment Tax Credit Amortization (enter negative) 114.19.c - -

171 ITC Amortization Not Permitted to Reduce Recoverable Tax Expense (enter negative) - -

172 ITC Amortization Permitted to Reduce Recoverable Tax Expense - -

173 Applicable Tax Gross-up Factor - -

174 Investment Tax Credit Amortization Adjustment - - -

175 Prepayments (Account 165) A B

(Prepayments exclude Prepaid Pension Assets) Year Balance

176 December 111.57.d - -

177 January company records - -

178 February company records - -

179 March company records - -

180 April company records - -

181 May company records - -

182 June company records - -

183 July company records - -

184 August company records - -

185 September company records - -

186 October company records - -

187 November company records - -

188 December 111.57.c - -

189 Prepayments (sum lines 176-188) /13 -

Reserves

189a (b) (c) (d) (e) (f) (g) (h)

Enter 1 if NOT in a Enter 1 if the accrual Enter the percentage

trust or reserved account is included in the paid for by customers,

account, enter zero formula rate, enter (0) if less the percent Amount Allocated,

(0) if included in a O if the accrual account is associated with an col. c x col. d x

trust or reserved NOT included in the offsetting liability on Allocation (Plant or col. e x col. f x col.

List of all Reserves Amount account formula rate the balance sheet Labor Allocator) g

190 Reserve 1 - - - - - -

190a Reserve 2 - - - - - -

190b Reserve 3 - - - - - -

190c Reserve 4 - - - - - -

190d … - - - - - -

190e … - - - - - -

Total -

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

debiting an expense which is included in this formula rate (column (e), using the same allocator in column (g) as used in the formula to allocate the amounts in the corresponding expense account)  (2) in advance of an anticipated

expenditure related to that expense (3) that is not deposited in a restricted account (e.g., set aside in an escrow account, see column (d)) with the earnings thereon retained within that account.  Where a given reserve is only partially funded through accruals collected from customers, only the balance funded by customer collections shall serve as a rate base credit, see column (f).  The source of monthly balance data is company records.

Unamortized Unamortized Abandoned

Month Year Regulatory Asset Plant

(a) (b) (c) (d)

Note A Note B

191 December - - -

192 January - - -

193 February - - -

194 March - - -

195 April - - -

196 May - - -

197 June - - -

198 July - - -

199 August - - -

200 September - - -

201 October - - -

202 November - - -

203 December - - -

204 Average of the 13 Monthly Balances - -

205 Amortization Expense of Abandoned Plant -

Multi-jurisdictional Workpaper

New York State 2 State 3 State 4 State 5 Weighed Average

Income Tax Rates

Weighting

206 SIT=Composite State Income Tax Rate 0

SIT will include multiple state or local income tax rates, if applicable, weighted based on the apportionment methodologies of each jurisdiction and the number of days in the year that the rates are effective.

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

Materials & Supplies

Stores Expense Transmission Materials &

Undistributed Supplies Total

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

Form No.1 page (a) (b) c (col a+col b)

208 December Column b - - -

209 January Company Records - - -

210 February Company Records - - -

211 March Company Records - - -

212 April Company Records - - -

213 May Company Records - - -

214 June Company Records - - -

215 July Company Records - - -

216 August Company Records - - -

217 September Company Records - - -

218 October Company Records - - -

219 November Company Records - - -

220 December Column c - - -

221 Average sum line 208 to 220 divided by 13 -

Notes

A Recovery of regulatory assets requires authorization from the Commission.

B Recovery of abandoned plant is limited to any abandoned plant recovery authorized by FERC.

Attachment 3 - Cost Support

COST OF CAPITAL LS Power Grid New York Corporation I

RETURN ON RATE BASE ( R )

$

222 Long Term Interest (117, sum of 62.c through 67.c) (Note D) -

223 Preferred Dividends (118.29c) (positive number) -

224 Proprietary Capital (Line 25 (c)) -

225 Less Preferred Stock (Line 9) -

226 Less Account 216.1 Undistributed Subsidiary Earnings (Line 25 (d)) -

227 Less Account 219 Accum. Other Comprehensive Income (Line 25 (e)) -

228 Common Stock (Sum of Lines 224 through 227) -

$ % Cost Weighted

229 Long Term Debt Line 246 col (a), Note A and Appendix A Note P - 0.00% 0.00% 0.00% =WCLTD

230 Preferred Stock Line 246 col (b), Note B and Appendix A Note P - 0.00% 0.00% 0.00%

231 Common Stock Line 228 col (b), Note C and Appendix A Notes O and P - 0.00% 0.00% 0.00%

232 Total (Sum of Lines 229 through 231) - 0.00% =R

(a) (b) ( c ) (d) ( e )

Accum Other

Proprietary Undistributed Comp.

Long Term Debt Preferred Stock Capital Sub Earnings Income 219

Monthly Balances for Capital Structure (Note A) (112.3.c) (112.16.c) 216.1 (112.12.c) (112.15.c)

233 December (Prior Year) - - - - -

234 January - - - - -

235 February - - - - -

236 March - - - - -

237 April - - - - -

238 May - - - - -

239 June - - - - -

240 July - - - - -

241 August - - - - -

242 September - - - - -

243 October - - - - -

244 November - - - - -

245 December - - - - -

246 13-Month Average - - - - -

Notes

A Long Term debt balance will reflect the 13 month average of the balances, of which the 1st and 13th are found on page 112,  lines 18.c to 21.c, in the Form No. 1; the cost is calculated by dividing line 222 by the Long Term Debt balance on line 229.

B Preferred Stock balance will reflect the 13 month average of the balances, of which the 1st and 13th are found on page 112 line 3.c in the Form No. 1

C Common Stock balance will reflect the 13 month average of the balances, of which the 1st and 13th are found on Form 1 page 112 line 16.c less lines 3.c , 12.c, and 15.c

D Long-term interest will exclude any short-term interest included in FERC Account 430, Interest on Debt to Associated Companies

LS Power Grid New York Corporation I

Project Worksheet

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

Utilizing Appendix A Data

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

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

Base ROE and Income Taxes Carrying Charge

Allocator Result

1 Rate Base -

2 BASE RETURN CALCULATION:

$ % Cost Weighted

3 Long Term Debt (Appendix A, Line 96) - 0.00% 0.00% 0.00%

4 Preferred Stock (Appendix A, Line 97) - 0.00% - 0.00%

5 Common Stock (Appendix A, Line 98) - 0.00% 0.00% 0.00%

6 Total (sum lines 3-5) - 0.00%

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

8 INCOME TAXES

9 T=1 - {[(1 - SIT) * (1 - FIT)] / (1 - SIT * FIT * p)} =  (Appendix A, line 65) -

10 CIT=(T/1-T) * (1-(WCLTD/R)) = -

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

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

13 1 / (1 - T) = (T from line 9) -

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

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

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

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

18 Base Return and Income Taxes Sum lines 7 and 17 -

19 Rate Base Line 1 -

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

100 Basis Point Incentive ROE and Income Taxes Carrying Charge Attachment 4

Result

21 Rate Base -

22 100 Basis Point Incentive Return impact on

$ % Cost Weighted

23 Long Term Debt (line 3) - 0.00% 0.00% 0.00%

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

25 Common Stock (line 5 plus 100 basis points) - 0.00% 0.00% 0.00%

26 Total (sum lines 24-26) - 0.00%

27 100 Basis Point Incentive Return multiplied by Rate Base (line 21 * line 26) -

28 INCOME TAXES

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

30 CIT=(T/1-T) * (1-(WCLTD/R)) = -

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

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

33 1 / (1 - T) = (T from line 29) -

34 Amortized Investment Tax Credit (line 14) -

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

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

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

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

39 Rate Base Line 21 -

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

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

Effect of 1% Increase in the Equity Ratio

Results

42 Rate Base -

43 100 Basis Point Incentive Return

$ % Cost Weighted

44 Long Term Debt (line 3 minus 1% in equity ratio) - 0.00% 0.00% 0.00%

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

46 Common Stock (line 5 plus 1% in equity ratio)) - 0.00% 0.00% 0.00%

47 Total (sum lines 44-46) - 0.00%

48 Line 47 x line 42 -

49 INCOME TAXES

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

51 CIT=(T/1-T) * (1-(WCLTD/R)) = -

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

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

54 1 / (1 - T) = (T from line 50) -

55 Amortized Investment Tax Credit (line 14) -

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

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

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

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

60 Rate Base Line 42 -

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

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

63 Revenue Requirement per project including incentives

64 Expense Allocator [Appendix A, lines 48 and 63, less Appendix A, line 47a (project specific) / Gross Transmission Plant In Service Column (l).  If Gross Transmission Plant is zero, then the Expense Allocator should be zero] (Note B) -

65 Base Carrying Charge Appendix A, Line 106 -

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

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

ROE ROE Base Equity % in Capital Impact of Equity

Authorized by (From Incentive % Structure (% above Component of Capital Expense O&M, Taxes Other              Competitive Bid              Total Revenues

Net Investment FERC (Note Appendix A, Authorized by Col (e) / .01 x Incentive $ (Col base %, -% below Structure(Col (b) x (i) Base Return and Tax (Line 65 Gross Plant In Allocator than Income              Depreciation/Amor              Concession              (Col. (h) + (j) + (k)

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

66 0.00% - - - - - - - -

66a 0.00% - - - - - - - -

66b 0.00% - - - - - - - -

66c 0.00% - - - - - - - -

… 0.00% - - - - - - - -

… 0.00% - - - - - - - -

… 0.00% - - - - - - - -

… 0.00% - - - - - - - -

… 0.00% - - - - - - - -

… 0.00% - - - - - - - -

… 0.00% - - - - - - - -

… 0.00% - - - - - - - -

… 0.00% - - - - - - - -

… 0.00% - - - - - - - -

… 0.00% - - - - - - - -

… 0.00% - - - - - - - -

… 0.00% - - - - - - - -

0.00% - - - - - - -

67 Total $0 - - - $0 - - - -

68 Check Sum Appendix A Line 3 -

69 Difference (must be equal to zero) -

Note:

A    Column (b), Net Investment includes the Net Plant In Service, unamortized regulatory assets, and unamortized abandoned plant. B    Column (l), Gross Plant in Service excludes Regulatory Assets, CWIP, and Abandoned Plant.

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

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

Project Docket No. Note

Attachment 5 - Example of True-Up Calculation
 LS Power Grid New York Corporation I

Year Annual True-Up Calculation

1

A B C D E F G

Actual Net

Adjusted Under/(Over) Interest Total True-Up

Project Net Revenue Collection Income Adjustment

Identification Project Name Requirement1 Revenue Received2 (C-D) (Expense) (E + F)

2 - - - - -

2a - - - - -

2b - - - - -

2c - - - - -

2d - - - - -

- - - - -

3 Total - - - - -

Notes

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

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

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

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

FERC Refund Interest Rate

(a) (b) (c) (d)

Quarterly Interest Rate

4 Interest Rate: Quarter Year under Section 35.19(a)

5 1st Qtr. - 0.00%

6 2nd Qtr - 0.00%

7 3rd Qtr - 0.00%

8 4th Qtr - 0.00%

9 1st Qtr - 0.00%

10 2nd Qtr - 0.00%

11 3rd Qtr - 0.00%

12 Sum lines 5-11 0.00%

13 Avg. Monthly FERC Rate    Line 12 divided by 7 0.00%