Case 13-M Edic to New Scotland 345 kv Transmission Line and Hurley Avenue PARs Project (ED-NS/HA) Article VII Filing ED-NS/HA

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Submission of Indicated New York Transmission Owners For Authority to Construct and Operate Electric Transmission Facilities in Multiple Counties in New York Case 13-M-0457 Edic to New Scotland 345 kv Transmission Line and Hurley Avenue PARs Project () Article VII Filing

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EDIC TO NEW SCOTLAND 345 TRANSMISSION LINE AND HURLEY AVENUE PARS PROJECT () TABLE OF CONTENTS Section Page APPLICATION 1 EXHIBIT 1: GENERAL INFORMATION REGARDING APPLICATION 7 EXHIBIT 2: LOCATION OF FACILITIES 13 EXHIBIT 5: DESIGN DRAWINGS 27 EXHIBIT 7: LOCAL ORDINANCES 35 EXHIBIT E-1: DESCRIPTION OF PROPOSED TRANSMISSION FACILITIES 43 EXHIBIT E-4: ENGINEERING JUSTIFICATION 49 ADDITIONAL FILING INFORMATION 67 PRE-FILED DIRECT TESTIMONY 75 SIS NOTICES 93 **** i Article VII Filing

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Submission of Indicated New York Transmission Owners For Authority to Construct and Operate Electric Transmission Facilities in Multiple Counties in New York Case 13-M-0457 Application Edic to New Scotland 345 kv Transmission Line and Hurley Avenue PARs Project () 1 Application

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---------------------------------------------------- Submission of New York Transmission Owners For Authority to Construct and Operate Electric Transmission Facilities in Multiple Counties in New York ---------------------------------------------------- X : : Case 13-M-0457: : : X APPLICATION Pursuant to Article VII of the Public Service Law ( PSL ), the Public Service Commission s ( Commission ) regulations thereunder and the Commission s Orders (including the December 16, 2014 Order Establishing Modified Procedures For Comparative Evaluation (the December 2014 Order )) in the above-referenced proceeding and in Cases 12-T-0502 and 13-E-0488, inter alia, Niagara Mohawk Power Corporation d/b/a National Grid ( National Grid ) and Central Hudson Gas and Electric Corporation ( Central Hudson ) and NY Transco LLC ( NY Transco and collectively with National Grid and Central Hudson, the Applicant ) submit this application for a Certificate of Environmental Compatibility and Public Need ( Certificate ) authorizing: (i) the construction of a new 345 kv overhead electric transmission line from the Edic Substation in the Town of Marcy, Oneida County, New York to the New Scotland Substation in the Town of New Scotland, Albany county, New York over a distance of approximately 91.5 miles (ED-NS); and (ii) the construction of a Phase Angle Regulators ( PARs ) and shunt capacitors at the Hurley Avenue Substation in the Town of Ulster, Ulster County, New York (the Hurley Avenue PARs, the Hurley Avenue Component, or HA and collectively with ED-NS, the Edic to New Scotland and Hurley Avenue PARs Project, the Project,, or the Project ). As required by Section 122 of the PSL, Section 85-2.8 of the Commission s Regulations, and the abovereferenced Commission Orders, this Article VII Application contains the following information: (a) Description of the Project; (b) Project Location; (c) Need for the Project; (d) Other relevant information; and (e) Conclusion. 1 Application

A. Description of the Project Edic to New Scotland 345 kv Transmission Line The Edic to New Scotland 345 kv Transmission Line portion of the Project will run a total distance of approximately 91.4 miles, as follows: from Edic Substation in Oneida County, New York over a distance of approximately 86.4 miles to the New Scotland Substation in the Town of New Scotland, Albany County, New York; and from Princetown Junction in the Town of Princetown, Schenectady County, New York over a distance of approximately 5.0 miles to the Rotterdam Substation in the Town of Rotterdam, Schenectady County, New York. These new transmission lines will be designed to operate at a nominal system voltage of 345 kv. The proposed conductor types for the lines are twin bundled 954 kcmil 54/7 ACSS Cardinal. The construction of the Edic to New Scotland 345 kv Transmission Line portion of the Project will include the rebuild and expansion of one substation: Rotterdam Substation in the Town of Rotterdam. In addition, the approximately 71.8 miles of the two existing Porter-Rotterdam 230 kv lines that will not be rebuilt from Porter Substation to Princetown Junction, will be retired. Hurley Avenue PARs The Hurley Avenue PARs portion of the Project includes the installation of the following equipment at Central Hudson s Hurley Avenue Substation located in the Town of Ulster, Ulster County, NY: three parallel 345kV 575 MW (+/- 30 degree) PARs ; two 345kV 135 MVAr switched shunt capacitor banks; three 345kV circuit breakers; and associated disconnect switches and other appurtenances as well as associated interconnection facilities. This Project also includes the replacement of station connections at both the Hurley Avenue and Leeds substations and replacement of two transmission line structures south of Route 23A in the Town of Catskill on the 301 Hurley to Leeds 345kV transmission line all designed to maximize the rating of the existing transmission line. The Project is a composite alternative, which combines an UPNY/SENY solution with a Central East component (Edic to New Scotland). Increasing the transfer capability for the Central East interface will allow the upgrade on the UPNY/SENY interface to be more fully utilized and increase the benefits of reduced congestion across the State. Adding the Central East component provides a more robust overall system solution, and creates benefits such as adding a 345 kv path on the bulk power systems, thereby increasing system operational flexibility. This composite Project also provides a more complete upgrade to relieve constraints from the Mohawk Valley down to the Hudson Valley. Further, 2 Application

and particularly with the addition of the Central East component, aging transmission facilities are replaced with new designs, allowing for greater resiliency. Although the cost of this Project is relatively high when compared to the Hurley Avenue PARs Project alone, it provides the following additional benefits which address all of the goals and objectives set forth in the Commission s December 2014 Order and the Energy Highway Blueprint. Expected to increase the UPNY/SENY N-1-1 thermal interface capacity by at least 400 MW. Expected to increase the Central East N-1 voltage interface capacity by 0 to 100 MW, which will further decrease congestion costs throughout the state of New York. Constructs a total of approximately 96.5 miles of new 345 kv transmission lines without requiring the expansion of any of the existing transmission line corridor ROW. Improves system Expandability of the bulk transmission system by providing one additional 345 kv station hub. Improves system Operability by providing a new 345 kv parallel lines along the Edic/Marcy to New Scotland Central East interface corridor and allows the system to be optimized across a wide variety of generation dispatch. Improves Resiliency by replacing approximately 118.4 miles of aging 230 kv infrastructure. B. Project Location Edic to New Scotland 345 kv Transmission Line The Edic to New Scotland 345 kv Transmission Line portion of the Project will share existing electric transmission ROW corridors that are occupied by other National Grid lines and in some locations lines owned and operated by the New York Power Authority. No new ROW acquisition will be required. The existing National Grid electric transmission ROW corridors that comprise the primary route for the Edic to New Scotland 345 kv Transmission Line traverse (from west to east) the counties of Oneida, Herkimer, Montgomery, Schenectady and Albany. Hurley Avenue PARs The Hurley Avenue PARs portion of the Project will be completed entirely within Central Hudson s Hurley Avenue Substation located in the Town of Ulster, Ulster County, New York. Detailed maps, drawings and explanations showing the proposed route of the Project are set forth in various exhibits, including Exhibit 2, to this Article VII Application. 3 Application

C. Need for the Project The Commission instituted this proceeding in 2012 to examine possible solutions to the problem of persistent congestion on portions of the New York Transmission System. 1 The congestion problem has been well documented in the 2011 and 2013 New York Independent System Operator ( NYISO ) Congestion Assessment and Resource Integration Studies ( CARIS ), the 2012 New York State Transmission Assessment and Reliability ( STARS ) report, and the U.S. Department of Energy Draft National Electric Transmission Congestion Study. Resource adequacy and transmission reliability issues have also been described in the 2014 NYISO Reliability Needs Assessment ( RNA ). In addition to congestion, reliability and resource adequacy, the transmission system in New York faces the following challenges: Aging infrastructure, which reduces resiliency to extreme weather events Limited capacity to address changes to the state generation portfolio Need to create a new NYISO capacity zone encompassing Load Zones G, H, I, and J ( New G-J Local Capacity Zone ), which can be avoided by increasing the UPNY/SENY transmission capacity Limited capacity to integrate renewable energy resources in the western part of the state Limited access to generation sources that would lower emissions Limited ability to expand the bulk transmission system Limited system robustness to respond to system operational needs. The need for the Project is explained in greater detail in Exhibit E-4 of this Article VII Application, entitled Engineering Justification. D. Other Relevant Information Exhibit 1 provides the name, address, email and phone number of the principal officer of each of National Grid, Central Hudson and NY Transco; and the status of each as organized under the New York Transportation Corporations Law. 1 Case 12-T-0502 Proceeding on Motion of the Commission to Examine Alternating Current Transmission Upgrades 4 Application

E. Conclusion The Applicant respectfully requests that the Commission issue an order pursuant to Article VII of the Public Service Law: 1) Certifying the Project, including its construction, operation and maintenance, pursuant to Article VII of the Public Service Law; and 2) Granting such other and further authorizations, consents, permissions, approvals, waivers and permits, as necessary, for the construction, operation and maintenance of the Project, including but not limited to, the issuance of a Water Quality Certification pursuant to Section 401 of the Federal Water Pollution Control Act, 33 USCA Section 1341. Dated: January 20, 2015 **** 5 Application

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