TREATMENT OF CROSS-SOUND CABLE

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TREATMENT OF CROSSSOUND CABLE Installed Capacity Stakeholder Process Working Group Long Island Power Authority Proposal May 11, 2006 1 CROSS-SOUND CABLE • Privately owned • Controllable - using DC technology • Interconnection - Interconnecting the New England Control Area with the New York Control Area 2 HYDRO QUEBEC • Privately owned • Controllable - using DC technology • Interconnection - Interconnecting the New England Control Area with the Hydro Quebec System 3 CROSS-SOUND CABLE • Proposal: – CSC should be treated in a similar manner as the Hydro Quebec Interconnection 4 HYDRO QUEBEC • Treated independent of and prior to consideration of all other ties. • Benefits based on Load and Capacity situation of the Hydro Quebec System. • Any Surplus Capacity is considered available to New England up to the transfer capability of the tie. • Benefits of the tie granted to the Rights Holders in the form of HQICCs. 5 CROSS-SOUND CABLE • Interconnects the NE Control Area with the NY Control Area. • Benefits should be based on the Load and Capacity situation of the NY Control Area. • Any Surplus Capacity should be considered available to New England up to the transfer capability of the Cross-Sound Cable. • Benefits of the tie should be granted to the Rights Holders of the Cross-Sound Cable in the form of Capacity Credits. 6 TIE LINE METHODOLOGY • Recommendation: – Develop a methodology that treats all tie lines in a comparable manner and allocates benefits appropriately 7

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