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conEfefisfefr a i conEdlson, Jeffrey L. Riback Assistant General Counsel December 22, 2006 VIA OVERNIGHT MAIL AND E-MAIL The Honorable Jaclyn A. Brilling Secretary New York State Public Service Commission Three Empire State Plaza Albany, New York 12223 Re: Case 06-T-0710: M29 Transmission Line Project Consolidated Edison Company of New York, Inc. Dear Secretary Brilling: ConsoUdated Edison Company of New York, Inc. ("Con Edison") and the New York State Department of Transportation ("NYSDOT") have executed the enclosed Joint Proposal resolving all matters between them related to Con Edison's application to the Commission for a Certificate of Environmental Compatibility and Public Need under Article Vll of the Public Service Law for the referenced M29 Transmission Line Project (the "Project"). The Joint Proposal is submitted in accordance with the November 20, 2006 Ruling Further Establishing Case Schedule of Judges William Bouteiller and Michelle L. Phillips in this proceeding. Enclosed for filing are an original and ten copies of the executed Joint Proposal, with appendices, exhibits, and the applicable sponsoring affidavits for the Project application, as amended. Discussions leading to the signing of the Joint Proposal were initiated pursuant to 16 NYCRR § 3.9 by letter to you dated October 20, 2006. The Joint Proposal has also been discussed with PSC Staff and the City of New York. PSC Staff recently advised us that it would not sign the agreement, and would make no decision about signing the agreement, until it had the opportunity to review the alternative route proposals submitted by the other parties. With respect to the City of New York, we understand that it has not yet completed the internal review process necessary for it to sign the agreement. We are hopeful that these parties will be able to sign the Joint Proposal within the next few weeks. Also enclosed are an original and ten copies of a Joint Statement in Support of the Joint Proposal, executed by Con Edison and NYSDOT. Copies of the executed Joint Proposal and the Joint Statement in Support are being provided by electronic mail and overnight mail to Judges Bouteiller and Philhps, the presiding officers in this Consolidated Edison Company of New York, Inc. 4 Irving Place New York NY 10003 212 460 6677 212 260 8627 fax [email protected] proceeding. Additional copies are being provided by electronic mail to the active parties in this proceeding, with the exception of the Exhibits, which will be provided by re^lar mail. Respectfully submitted. Enclosures cc: The Hon. William Bouteiller The Hon. MicheUe L. Phillips Donna K. Hintz, Esq. (NYSDOT) Active Parties List (12/21/06) / i. !" ^ STATE OF NEW YORK PUBLIC SERVICE COMMISSION Case 06-T-0710 — Application of Consolidated Edison Company of New York, Inc. for a Certificate of Environmental Compatibility and Public Need Pursuant to Article VII of the Public Service Law for the M29 Transmission Line Project Joint Proposal December 22,2006 STATE OF NEW YORK PUBLIC SERVICE COMMISSION Case; 06-T-0710 — Application of Consolidated Edison Company of New York, Inc. for a Certificate of Environmental Compatibility and Public Need Pursuant to Article VTI of the Public Service Law for the M29 Transmission Line Project Joint Proposal THIS JOINT PROPOSAL is made as of December 22, 2006 by and among Consolidated Edison Company of New York, Inc. ("Con Edison" or the "Company") and the New York State Department of Transportation (collectively referred to as the "Signatory Parties"). Introduction On June 14,2006, Con Edison filed an application with the New York State Public Service Commission (the "Commission") seeking a certificate of environmental compatibility and public need ("Certificate") pursuant to Article VII of the Public Service Law ("PSL") for the construction and operation of an approximately 9.5-mile, 345 kV high-pressure fluid-filled ("HPFF" pipe-type), primarily underground, transmission line connecting Con Edison's existing Sprain Brook Substation in the City of Yonkers, Westchester County, with the new Academy Substation to be located in the Inwood section of upper Manhattan in the City of New York (the "Project"). By letter dated July 24, 2006, the Commission requested that Con Edison supplement the application by submitting the Company's plans for site work and the masonry building design associated with the Academy Substation. On August 8, 2006, this information, designated Exhibit 10 of the application, was filed as a supplement to the application. On October 6, 2006, Con Edison filed revised pages to the application reflecting a change in the proposed method for the transmission line crossing of the Harlem River. The application and supplements (hereinafter, the "Application") were provided to all statutory and other parties on the service list at the time of filing with the Commission. Public statement hearings were held before Presiding Administrative Law Judges William Bouteiller and Michelle Phillips in Yonkers, New York, on the afternoon and evening of September 6,2006, the purpose of which was to receive unsworn statements from members of the public regarding the Application and other supporting materials. Additional public statement hearings were held before Judge Phillips in the Bronx and upper Manhattan during the afternoons and evenings of October 16 and 17, respectively. A preliminary conference was held before Judges Bouteiller and Phillips at the Conunission offices in Manhattan on September 7, 2006, to take appearances by active parties to the proceeding, to discuss pending issues, discovery, the settlement process, and further case scheduling should evidentiary hearings be required. An opportunity for discovery has existed since the filing of the Application on June 14, 2006. After exploratory discussions among the parties, a letter noticing the scheduling of negotiations was sent via electronic mail on October 20, 2006, to those persons on the then- current Active Party List to the proceeding and the Administrative Law Judges, and was duly submitted to the Secretary of the Commission by letter and electronic mail of the same date. To date, Con Edison has responded to 121 interrogatories and information requests submitted by New York State Department of Public Service staff ("DPS Staff), Manhattan Community Board 12 ("CB12"), Time Warner Cable ("TWC") and The New York and Presbyterian Hospital ("NYPH"), with respect to the Project's need, design, and construction. Con Edison's responses to DPS Staffs interrogatories were satisfactory to DPS Staff, and no further interrogatories or information requests have been received from DPS Staff, CB12, or any other party, other than TWC. Responses to three additional interrogatories from TWC ;are not due until after the date of this Joint Proposal. A joint resolution of the case is now feasible because, after thorough investigation and discussion, the Signatory Parties more fully understand their respective positions and recognize that a mutually satisfactory resolution of those positions is possible. The Signatory Parties also believe that this Joint Proposal will further the objective of allowing Con Edison to meet both near-term and projected long-term electric load growth in upper Manhattan, the Bronx:, and southern Westchester County in a reliable, and environmentally sound manner. The Counly of Westchester, which actively participated in the negotiations leading to this Joint Proposal, is not a Signatory Party hereto, but is not opposed to the Project. In addition, by letter dated December 14, 2006, attached as an Exhibit hereto, the New York State Department of Transportation stated that it "supports [Con Edison's] original proposed route that utilizes routes in the Cities of New York and Yonkers." Terms of Joint Proposal I. General Provisions 1. It is understood that each provision of this Joint Proposal is in consideration and support of all of the other provisions of this Joint Proposal and is expressly conditioned upon approval of the terms of this Joint Proposal in full by the Commission. If the Commission fails to adopt the terms of this Joint Proposal, the parties to the Joint Proposal shall be free to pursue their respective positions in this proceeding without prejudice. 2. The terms and provisions of this Joint Proposal apply solely to, and are binding only in the context of the present Application. None of the terms or provisions of this Joint Proposal and none of the positions taken herein by any party may be referred to, cited or relied upon in any fashion as precedent or otherwise in any other proceeding before this Commission or any other regulatory agency or before any court of law for any purpose, except in furtherance of ensuring the effectuation of the purposes and results of this Joint Proposal. 3. The Signatory Parties agree to submit this Joint Proposal to the Commission along with a request that the Commission expeditiously adopt the terms and provisions of this Joint Proposal as set forth herein. 4. The Signatory Parties recognize that certain provisions of this Joint Proposal contemplate actions to be taken in the future to effectuate fully this Joint Proposal. Accordingly, the Si^jnatory Parties agree to cooperate with each other in good faith in taking such actions. 5. In the event of any disagreement over the interpretation of this Joint Proposal or implementation of any of the provisions of fhis Joint Proposal, which cannot be resolved informally among the Signatory Parties, such disagreement shall be resolved in the following manner: (a) the Signatory Parties shall promptly convene a conference and in good faith attempt to resolve any such disagreement; and (b) if any such disagreement cannot be resolved by the Signatory Parties, any Signatory Party may petition the Commission for resolution of the disputed matter. 6. This Joint Proposal shall not constitute a waiver by Con Edison of any rights it might have to apply for additional or modified permits, approvals or certificates from the Commission, NYSDEC, or any other agency in accordance with relevant provisions of law.