# nationalgrid James P. Flannery Director Power Plant Operations
July 28, 2011 

### VIA ElectronicFiling Hon. Jaclyn Brilling, Secretary NYS Public Service Commission Three Empire State Plaza Albany, New York 12223 

### Re: Notification ofGeneration UnitRetirement Generator: National GridGeneration LLC Generating Units: FarRockaway Unit4 and Glenwood Units 4 & 

### 5 Dear Secretary Brilling: Pursuant to the notification requirements set forth in the Commission's 

### Order Adopting Notice Requirements for Generation Unit Retirements, Case 05-E-0889, Generation Unit Retirement Policies and Procedures (issued December 20, 2005), National Grid Generation LLC ("National Grid Generation") hereby provides notice ofits intent to permanently retire Unit No. 4 at the Far Rockaway Power Station (PTID# 23548) ("Far Rockaway 4") and Glenwood Power Station Units 4 & 5 (PTID# 23550 and 23614, respectively) ("Glenwood 4 & 5") from service at a date to be determined, butcurrently anticipated inthe Summer2012. Far Rockaway 4 is a 100 MW (nameplate rating), gas-fired steam turbine unit located at National Grid Generation's Far Rockaway Power Station in New York, New York. Glenwood 4 & 5 are each 100 MW (nameplate rating), gas-fired steam turbine units located at National Grid Generation's Glenwood Power Station in Glenwood Landing, New York. 1 These units are interconnected to the Long Island Power Authority ("LIPA") inZone K, and have provided energy, capacity and ancillary services to LIP A since 1998 pursuant to a long-term power purchase agreement, the Power Supply Agreement, dated as ofJune 26, 1997 (the "PSA"). Combined, these unitshave produced less than2% ofLIP A's total energy requirements in recent years. In consultation with National Grid, LIPA has elected to exercise a contractual right to remove Far Rockaway 4 and Glenwood 4 & 5 from the PSA upon completion ofcertaintransmission upgrades that are necessaryto permit the retirement ofthese units consistent withtheNew York Independent System Operator's (''NYISO") Technical Bulletin 185 and Attachment Y of the NYISO Open Access Transmission Tariff
. Accordingly, the parties recently entered into an amendment to the PSA that provides for the removal ofthese units from the agreement. This PSA amendment will become effective upon receipt ofrequired regulatory approvals, specifically (i) the approval ofthe

1 In additionto Glenwood 4 &5, National Grid Generation owns two combustion turbine units and apeaking facility in GlenwoodLanding, NewYork. Thecombustion turbine units and peaking facility atthe Glenwood site are unaffected bythis notice.

175 East Old Country Road, Hicksville, NY 11801-4257 T: 516/545-4875 • james.ftannery@us.ngrid.com • www.nationalgrid.comLetter to Hon. Jaclyn Brilling July28, 2011 Page 2 of2
New York State Comptroller and the New York State Attorney General; and (ii) acceptance ofthe amendmentfor filing bythe Federal Energy Regulatory Commission. National Grid Generation is retiring these units because they would be uneconomic to operate in the absence of a power purchase agreement with LIPA. Accordingly, National Grid Generation intends to retire Glenwood 4 & 5 and Far Rockaway 4 (independently ofeach other) upon LIPA posting notice to its OASIS that it has completed the necessary transmission upgrades to allow for retirement. These transmission upgrades are currently anticipated to be completed no later than June 30, 2012. National Grid reserves the right to rescind this notice in the event the PSA amendment fails to become effective, the anticipated transmission agreements are not completed, orthe units otherwise fail to become retirement eligible. National Grid Generation is simultaneously providing a copy of this notice to theNYISO and LIP A. Thank you for your attention to this matter. Yours truly,

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cc: New York Independent System Operator Via Electronic Mail (generator re tirement@nyiso
.com) Paul A. DeCotis, LIP A Rick Shansky, LIPA EdPetrocelli, LIPA Ellen S. Smith, National Grid John G. Cochrane, National Grid BrianT. McCabe, National Grid Sean P
. Moore,National Grid Philip A. Decicco, National Grid