Docket No. ER16-2396-000 1

FEDERAL ENERGY REGULATORY COMMISSION

WASHINGTON, DC 20426

OFFICE OF ENERGY MARKET REGULATION

New York Independent System Operator, Inc.

Docket No. ER16-2396-000

Issued: 9/28/16

New York Independent System Operator, Inc.

10 Krey Blvd.

Rensselaer, NY 12144

Attention:James H. Sweeney

Attorney

Reference:Proposed Tariff Amendments Regarding Recovery of Shortfalls in Funding NYISO’s Annual Operating Costs

Dear Mr. Sweeney:

On August 9, 2016, the New York Independent System Operator, Inc. (NYISO) submitted proposed tariff amendments to Rate Schedule 1 of its Open Access Transmission Tariff.[1] NYISO states that the proposed tariff revisions will better align the rates charged to NYISO’s transmission customers with NYISO’s actual operating costs. NYISO also states that the proposed amendments will align the amount of non-physical market activity revenue retained by NYISO with the amount needed to satisfy a shortfall based on the lower of the budgeted revenue requirement or actual costs for the prior year. NYISO further states that the proposal will accomplish this goal without imposing any new or increased rates on any transmission customers.

Pursuant to the authority delegated to the Director, Division of Electric Power

Regulation – East, under 18 C.F.R. § 375.307, your submittal is accepted for filing, effective October 12, 2016, as requested.

The filing was noticed on August 9, 2016, with comments, interventions, and protests due on or before August 30, 2016. Pursuant to Rule 214 (18 C.F.R. § 385.214 (2016)), to the extent that any timely filed motions to intervene and any motion to intervene out-of-time were filed before the issuance date of this order, such interventions are granted. Granting late interventions at this stage of the proceeding will not disrupt the proceeding or place additional burdens on existing parties.

This acceptance for filing shall not be construed as constituting approval of the referenced filing or of any rate, charge, classification, or any rule, regulation, or practice affecting such rate or service contained in your filing; nor shall such acceptance be deemed as recognition of any claimed contractual right or obligation associated therewith; and such acceptance is without prejudice to any findings or orders which have been or may hereafter be made by the Commission in any proceeding now pending or hereafter instituted by or against NYISO.

This order constitutes final agency action. Requests for rehearing by the Commission may be filed within 30 days of the date of issuance of this order, pursuant to 18 C.F.R. § 385.713.

Sincerely,

Kurt M. Longo, Director

Division of Electric Power

Regulation – East