In a filing with the New York State Public Service Commission dated Thursday, National Grid has indicated it has reached agreement with Dunkirk Power LLC, NRG energy’s Dunkirk facility.

Carlos A. Gavilondo, Senior Counsel II for the Niagara Mohawk Power Corporation, doing business as National Grid, signed the documents which included a cover letter and filing the Proceeding to Examine Repowering Alternatives to Case 12-E-0577 Utility Transmission Reinforcements.

Under a final comments section, the filing lays the agreement out.

“The Term Sheet in Attachment 1 reflects an agreement that will enable National Grid to continue to provide reliable electric service in Western New York. Refueling Dunkirk Units 2, 3 and 4 also provides additional reliability benefits relative to the company’s transmission-only solution. Having Dunkirk on-line also increases the NYISO’s operational flexibility to call on NYPA hydropower resources as well as imports from Ontario for economic or emergency energy under high load conditions.

“In addition to direct reliability benefits, refueling Dunkirk Units 2, 3 and 4 would produce and retain significant local economic benefits consistent with state law, reduce statewide capacity costs and Western New York transmission congestion, and have beneficial environmental effects. The benefits that result from refueling Dunkirk Units 2, 3 and 4 are projected to substantially outweigh the costs under the agreement.”

See Saturday’s OBSERVER for a complete story.