6.10.8 Attachment 2 – Rate Mechanism for the Recovery of NYPA RTFC Projects

6.10.8.1 Applicability

This Attachment 2 to Rate Schedule 10 of the ISO OATT establishes the RTFC for the recovery of costs for projects undertaken by NYPA that are eligible for cost recovery pursuant to Rate Schedule 10.  The projects subject to this Attachment 2 to Rate Schedule 10 of the ISO OATT are as follows:

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

For purposes of Rate Schedule 10 of the ISO OATT: (i) each project identified above shall constitute an applicable “Eligible Project”; and (ii) NYPA shall constitute the applicable “Transmission Owner” to recover costs for each such project through the RTFC.

6.10.8.2 Project Revenue Requirement

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

6.10.8.3 Project Cost Allocation

 The costs of each Eligible Project shall be allocated to Responsible LSEs as follows:

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