20141028-5059 FERC PDF (Unofficial) 10/28/2014 11:26:46 AM 1001 Pennsylvania Avenue, NW, Washington, DC 20004-2595 p202 624-2500 f202 628-5116 October 28, 2014 The Honorable Kimberly D. Bose, Secretary Federal Energy Regulatory Commission 888 First Street, NE Washington, DC 20426 Re: Evergreen Gen Lead, LLC, Docket No. ER15-___-000 Filing of Rate Schedule, Request for Waiver of Certain Accounting and Reporting Requirements Dear Ms. Bose: Pursuant to Section 205 of the Federal Power Act (“FPA”)1 and Section 35.12 of the regulations of the Federal Energy Regulatory Commission (“FERC” or “Commission”),2 Evergreen Gen Lead, LLC (“Evergreen Gen Lead”) submits a rate schedule to specify the rights of Evergreen Wind Power III, LLC (“EWP III”), Stetson Holdings, LLC (“Stetson Holdings”), Stetson Wind II, LLC (“Stetson II”) and Champlain Wind, LLC (“Champlain” and with EWP III, Stetson Holdings and Stetson II, the “Members”) to access and use Evergreen Gen Lead’s 115 kV, 38-mile generator lead and related relay protection equipment that begins at the Stetson Mountain substation in Washington County, Maine and continues to the Keene Road Substation (the “EGL Interconnection Line”).3 The rate schedule, designated as Evergreen Gen Lead’s FERC Electric Rate Schedule No. 1, is included in Attachment A hereto (“Rate Schedule”). Evergreen Gen Lead requests that the Commission accept the Rate Schedule for filing, without modifications, to become effective on December 28, 2014. 116 U.S.C. § 824d. 218 C.F.R. § 35.12 (2014). 3The Keene Road Substation is located in the Town of Chester, Penobscot County, Maine, is owned by Emera Maine and is under the operational control of the ISO New England Inc. (“ISO-NE”). DCACTIVE-29261545.9 20141028-5059 FERC PDF (Unofficial) 10/28/2014 11:26:46 AM The Honorable Kimberly D. Bose, Secretary October 28, 2014 Page 2 Evergreen Gen Lead also requests that the Commission grant waiver of the requirements of Parts 41, 101, 141 with the exception of Sections 141.14 and 141.15. I. DESCRIPTION OF THE RATE SCHEDULE Evergreen Gen Lead, which is directly owned by the Members, owns and operates the EGL Interconnection Line. EWP III owns and operates a 60 MW wind- powered generation facility located in Penobscot County, Maine (“EWP III Facility”). Stetson Holdings owns and operates a 57 MW wind-powered generation facility located in Washington and Penobscot Counties, Maine (“Stetson I Facility”). Stetson II owns and operates a 25.5 MW wind-powered generation facility located near Danforth, Maine (“Stetson II Facility”). Champlain is developing an approximately 48 MW wind- powered generation facility to be located in Washington and Penobscot Counties, Maine (“Champlain Facility” and with the EWP III Facility, the Stetson I Facility and the Stetson II Facility, the “Interconnected Projects”). As noted in an earlier order granting Evergreen Gen Lead and each of the Members waiver of the Commission’s open access transmission requirements, while the EGL Interconnection Line was initially owned by Stetson Holdings (formerly known as Evergreen Wind Power V, LLC), the line was designed to interconnect each of the Interconnected Projects to ISO-NE.4 As further noted in the Waiver Order, prior to commencement of operations of a second Interconnected Project, the EGL Interconnection Line would be transferred to Evergreen Gen Lead, with each of the Members owning Evergreen Gen Lead in proportion to its ownership of the total generating capacity of the Interconnected Projects and with each Member having “the right to use an undivided interest in the generator lead line to deliver energy produced by its respective” Interconnected Project.5 4See Evergreen Wind Power V, LLC, 130 FERC ¶ 61,186, at PP 5–7, 18 (2010) (“Waiver Order”). Although the Waiver Order described the EGL Interconnection Line as a 345 kV line, the line is actually a 115 kV line. 5Waiver Order at P 7. See also First Wind Holdings, LLC, 127 FERC ¶ 62,012 (2009) (authorizing transfer of EGL Interconnection Line to Evergreen Gen Lead under FPA § 203). DCACTIVE-29261545.9 20141028-5059 FERC PDF (Unofficial) 10/28/2014 11:26:46 AM The Honorable Kimberly D. Bose, Secretary October 28, 2014 Page 3 No charges are assessed under the Rate Schedule.6 The Rate Schedule simply documents each Member’s right to access and use the EGL Interconnection Line. Specifically, the Rate Schedule provides that each Member has capacity rights in the EGL Interconnection Line up to the percentage of capacity of the EGL Interconnection Line proportionate to its Membership Interest as set forth below (“Permitted Capacity”): Member Name Membership Interest Stetson Holdings 30.4% EWP III 32.0% Stetson II 13.6% Champlain 24.0% The Commission previously determined that a separate line loss allocation agreement among the Members was not required to be filed separately under FPA § 205.7 Nonetheless, a line loss allocation agreement (“Line Loss Agreement”) has been included as Attachment 1 to the Rate Schedule for completeness. The Line Loss Agreement provides that, among the Members, losses are allocated to each Interconnected Project based on the incremental losses incurred upon each Interconnected Project’s commercial operations date. Evergreen Gen Lead requests that the Commission accept the Rate Schedule for filing without suspension, hearing, modification or condition. The terms and conditions of the Rate Schedule are comparable to those in other agreements accepted by the Commission in which a company is formed to own a generator lead line that will be used by affiliates that are developing, owning and operating generation facilities.8 6Evergreen Gen Lead’s operations are funded solely through the Members’ equity contributions in accordance with the Amended and Restated Limited Liability Company Agreement of Evergreen Gen Lead. 7Waiver Order at P 20. 8See, e.g., Bishop Hill Interconnection LLC, 138 FERC ¶ 61,159, at PP 7–10, 22 (2012) (“Bishop Hill”); Invenergy Wind Development Michigan LLC, 136 FERC ¶ 61,209, at PP 6–7, 13 (2011) (“Invenergy”); Wolverine Creek Goshen Interconnection LLC, Docket Nos. ER06-267-000, et al. (Jan. 13, 2006) (unpublished letter order ), errata (Jan. 27, 2006) (granting waivers of accounting and reporting requirements) (“Wolverine Interconnection”); Peetz Logan Interconnect, LLC, 122 FERC ¶ 61,086, at PP 4, 9 (2008) (“Peetz Logan”). DCACTIVE-29261545.9 20141028-5059 FERC PDF (Unofficial) 10/28/2014 11:26:46 AM The Honorable Kimberly D. Bose, Secretary October 28, 2014 Page 4 II. REQUESTED EFFECTIVE DATE Evergreen Gen Lead requests an effective date for the Rate Schedule of December 28, 2014.9 III. OTHER FILING REQUIREMENTS UNDER PART 35 OF THE COMMISSION’S REGULATIONS A. Description and Supporting Information - 18 C.F.R. § 35.12(a) and (b)(2) and (5). A description of and support for the Rate Schedule are provided in this transmittal letter. B. Evidence of Requisite Agreement and Copies of the Filing- 18 C.F.R. § 35.12(a). The Members have reviewed the rate schedule prior to filing; and a copy of the Rate Schedule is contained in Attachment A to this letter. C. Estimates of Transactions and Revenues - 18 C. F. R. § 35.12(b)(1). No rate is charged under the Rate Schedule. Therefore, no revenue estimates are provided. D. Comparisons - 18 C.F.R. § 35.12(b)(3). Evergreen Gen Lead has no similar arrangements with other parties. E. Specifically Assignable Facilities - 18 C.F.R. § 35.12(b)(4). See Section I for a description of the EGL Interconnection Line. To the extent necessary, Evergreen Gen Lead requests waiver of the requirement that it provide a single line diagram or map of the EGL Interconnection Line because such a diagram or map would not provide the Commission with additional information relevant to its review. F. Posting – 18 C.F.R. 35.2(e)(1)(ii). Each Member has been served with a copy of this filing. 9The EGL Interconnection Line has been owned and operated by Evergreen Gen Lead since January 25, 2010; however, no charges have been assessed by Evergreen Gen Lead on any entity and, therefore, no late-filing penalties would be applicable to the extent this is deemed to be a late filing. Evergreen Gen Lead is submitting this rate schedule after completing a compliance review and has reported this matter to the Commission’s Office of Enforcement. DCACTIVE-29261545.9 20141028-5059 FERC PDF (Unofficial) 10/28/2014 11:26:46 AM The Honorable Kimberly D. Bose, Secretary October 28, 2014 Page 5 IV. REQUEST FOR ADDITIONAL WAIVERS AND AUTHORIZATIONS Evergreen Gen Lead respectfully requests that the Commission waive certain of its filing requirements as are traditionally accorded to applicants that are not providing a cost-based service.10 Specifically, Evergreen Gen Lead requests waiver of the requirements of Parts 41, 101 and 141, with the exception of Sections 141.14 and 141.15. The Commission has granted these waivers and authorizations to owners of limited interconnection facilities,11 market-based rate sellers and qualifying facilities selling at avoided cost rates because the primary purpose of such regulation is to assist the Commission in determining a public utility’s cost-of-service in order to determine whether its rates are just and reasonable cost-based rates, but where an entity is not subject to traditional cost-based regulation by the Commission, these requirements are not applicable. The logic underlying the Commission’s waiver of these requirements for market- based rate sellers and other companies owning discrete interconnection facilities applies equally to Evergreen Gen Lead. No regulatory purpose would be served by subjecting Evergreen Gen Lead to the significant expense of maintaining its accounts in accordance with the Uniform System of Accounts and denying it the more flexible reporting requirements and authorizations that are afforded to other companies, including companies owning limited and discrete interconnection facilities, that do not provide services under traditional cost-based rates.12 The Commission previously granted a waiver of the open access transmission tariff requirements of Order Nos.