UNITED STATES OF AMERICA
BEFORE THE
FEDERAL ENERGY REGULATORY COMMISSION
)
New York Power Authority)Docket No. ER15-1951-000
)
MOTION TO INTERVENE AND COMMENTS OF
THE NEW YORK INDEPENDENT SYSTEM OPERATOR, INC.
Pursuant to Rules 212 and 213 of the Federal Energy Regulatory Commission’s (“FERC”
or “Commission”) Rules of Practice and Procedure,1 the New York Independent System
Operator, Inc. (“NYISO”) moves to intervene and submits comments in the above-captioned
proceeding. The NYISO requests that the Commission consider these comments in its
evaluation of whether to grant the relief requested by the New York Power Authority (“NYPA”).
I.Background
On June 18, 2015, NYPA, a Responsible Interface Party2 (“RIP”) participating in the
NYISO’s Installed Capacity (“ICAP”) Market, submitted a request for waiver of a tariff-imposed
deadline to submit Special Case Resource (“SCR”) performance data to the NYISO. Granting
such request would allow the NYISO to accept and process the data in accordance with the
NYISO’s tariffs and applicable manuals. NYPA specifically requests waiver of the requirement
1 18 C.F.R. §§ 385.212 and 385.213 (2015).
2 Capitalized terms not otherwise defined herein have the meaning set forth in the NYISO’s Market Administration and Control Area Services Tariff.
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in section 5.12.11.1 of the Market Administration and Control Area Services Tariff (“Services
Tariff”) that requires RIPs to submit performance data to the NYISO within seventy-five (75)
days of an SCR event or test (“Submission Period”) and section 4.4.7.1 of the ICAP Manual.
The NYISO’s SCR program is a reliability-based demand response program that is
activated in response to: (i) a forecasted reserves shortage, (ii) an ISO declared Major
Emergency state, and (iii) a request for load relief purposes, or as the result of a local reliability rule. In addition to activation for such events, the NYISO schedules two performance tests in
each Capability Period to confirm the ability of each SCR to meet its capacity obligation.3 RIPs act as aggregators of individual SCRs to facilitate the SCR’s participation in the program. The
NYISO did not activate its SCR program for an event in the Winter 2014-2015 Capability
Period. The only activation of SCRs during the Capability Period was for the performance test conducted on March 3, 2015.
Under the Services Tariff, a SCR is obligated to perform in all events and required tests
provided that the NYISO gives the appropriate day-ahead and intra-day notifications.4 Events
and tests meeting these notification requirements are considered “mandatory,” and the activated
SCRs are required to provide the NYISO with their committed demand reductions. After the
NYISO activates a mandatory event or test, Section 5.12.11.1 of the Services Tariff requires
RIPs to submit, within the 75-day Submission Period, certain performance data5 for each SCR
3 RIPs have the option for a SCR to use its performance in a mandatory event hour in lieu of performance in the
first performance test. Therefore, if a SCR has performed in a mandatory event, the SCR may use its performance in
the event as a proxy for its test value and be relieved of the requirement to perform in the first performance test. The
SCR has the obligation to perform in the first performance test in the absence of a proxy test value, and resources
that meet the appropriate operational characteristics are required to perform in the second performance test.
4 NYISO Services Tariff § 5.12.11.1.
5 Section 4.12.4.8 of the NYISO’s ICAP Manual requires each SCR to report performance data for all hours during a mandatory SCR event and any required performance tests. A SCR’s performance data is the hourly interval meter data for the SCR over the course of the event or test.
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that was required to perform. If the performance data of a SCR is not submitted within the
Submission Period, the Services Tariff directs the NYISO to attribute zero performance to that resource for the event or test.6 In order to meet its tariff obligation, NYPA was required to
submit performance data for the March 3 test by May 17, 2015. NYPA did not submit the
required data by that date.
Non-performance of a SCR, attributable either to operational failure or to a failure to
submit the required data, results in certain tariff imposed consequences. Applicable to NYPA’s waiver request, non-performance for an event or test impacts the unforced capacity the SCR is able to sell in the ICAP market and may result in ICAP shortfalls and related deficiency charges pursuant to section 5.14 of the Services Tariff. The effect of such consequences is particularly acute in a Capability Period, such as the Winter 2014-2015 Capability Period at issue in NYPA’s request, when the NYISO did not activate a SCR event, leaving the resource’s performance for the entire Capability Period to be measured over only a single test hour.
II.Motion to Intervene
The NYISO is the independent body responsible for providing open access transmission
service, maintaining reliability, and administering competitive wholesale markets for electricity,
capacity and ancillary services in New York State. The NYISO further administers various
demand response programs in each of those wholesale markets pursuant to Commission-
approved tariffs. In this proceeding, NYPA is requesting a waiver of a requirement of the SCR
program established by the NYISO Services Tariff. The NYISO, therefore, has a unique interest
6 NYISO Services Tariff § 5.12.11.1.
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in this proceeding that cannot be adequately represented by any other entity and, therefore, should be permitted to intervene with all rights of a party.
III.Comments
The NYISO understands NYPA’s waiver request as seeking relief from the requirement in section 5.12.11.1 of the NYISO’s Services tariff to submit the required resource performance data within 75 days of the March 3 performance test.
The Commission evaluates such a waiver request based on the specific facts and
circumstances of the request,7 and upon evaluation of a four-part test: (i) whether the requestor has acted in good faith; (ii) whether the request is of limited scope; (iii) whether the request will remedy a concrete problem; and (iv) whether the waiver, if granted, will have undesirable
consequences such as harming third parties.8
Because the Commission’s evaluation of a waiver is highly dependent on the particulars of each request, the Commission has recognized that the granting of one waiver request is not precedent for granting future requests.9 It is highly important that the Commission continue to reinforce the importance of tariff deadlines that enhance certainty and assist the NYISO in
administering open and competitive markets.
Based upon (i) the NYISO’s review of NYPA’s waiver request, (ii) the facts known to
the NYISO at this time, (iii) the potential for adverse market impacts, and (iv) Commission
7 See, e.g., PJM Interconnection, L.L.C. and Trans-Allegheny Interstate Line Company, 144 FERC ¶ 61,060, at P 17
(2013).
8 New York Power Authority, 139 FERC ¶ 61,157, at P 28 (2012); Air Energy TCI Inc., 143 FERC ¶ 61,172, at P 16 (2013); Hudson Transmission Partner, LLC, 131 FERC ¶ 61,157 at P 10 (2010).
9 See New York Power Authority, 139 FERC ¶ 61,157 at P 30 (after finding the requested waiver sufficiently limited to the specific facts presented, the Commission stated that granting the waiver “does not constitute precedent for allowing market participants to avoid these or any other conditions set forth in the Services Tariff.”).
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guidance on waiver requests, the NYISO does not oppose NYPA’s waiver request. The NYISO
defers to the Commission on whether NYPA has met its burden of proof.
In its waiver request, NYPA states that it “believed in good faith that it correctly made this submission in a timely manner, but on June 5, 2015 learned that the NYISO had not received the required data within the designated period.”10 The NYISO does not object to NYPA’s
waiver request, but emphasizes that NYPA is solely responsible for submitting the data required
under the NYISO’s tariffs. While the NYISO has no reason to question NYPA’s assertion that
the error was made in good faith, NYPA’s pleading seems to imply that there was a technical
issue with the NYISO’s Demand Response Information System (“DRIS”), the software used by
RIPs to submit performance data. The NYISO has discovered no indication that the DRIS
suffered any malfunction that contributed to NYPA’s failure to submit the required data or that
the DRIS was not operating correctly during the 75-day Submission Period. In response to its
failure to timely submit data, NYPA has indicated to the NYISO, and stated in its waiver request,
that it has taken corrective action to improve compliance with the submission deadlines
contained in the NYISO’s tariff moving forward. While the NYISO has not had the opportunity
to review the new processes implemented by NYPA, the NYISO believes that such process
improvements are warranted as this is the second waiver request submitted by NYPA since 2012
seeking Commission permission to submit required SCR data beyond a tariff-imposed
deadline.11
In its waiver request, NYPA further states that it will discuss with the NYISO potential
methods by which NYPA could be advised if there are issues with its submissions prior to the
10 New York Power Authority June 18, 2015 Request for Waiver at 3.
11 New York Power Authority May 12, 2012 Request for Waiver.
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close of the Submission Period.12 The DRIS, however, already provides such notifications. If a
RIP uploads data to the DRIS that contains errors or omissions, the DRIS will instantly provide
the RIP with messages indicating the source of those errors. The DRIS does not, however,
provide a RIP with notification that a file has not been uploaded to the system. The NYISO
believes that the 75-day Submission Period provides ample time for RIPs to fulfill their tariff
obligations and that it is the RIP’s responsibility, not the NYISO’s, to ensure that the appropriate
data has been uploaded in accordance with the timelines set out in the NYISO’s tariffs and on the
ICAP Calendar located on the NYISO’s website and available to all Market Participants.
Although NYPA seeks only a limited waiver of a filing deadline, the NYISO is
concerned that a waiver in this proceeding may raise questions regarding the applicability of the
data reporting requirements in future Capability Periods and as they apply to other RIPs. While
the 75-day deadline is administrative, it is nonetheless necessary for the NYISO to receive timely
performance data from RIPs in order to process and review data from over 4,000 SCRs
participating in the program. Timeliness helps ensure certainty and transparency, as the data
submitted by RIPs is used, among other reasons, to calculate Installed Capacity shortfalls (i.e.,
when a SCR provided less capacity than it committed to provide), performance factors used to
determine how much capacity a SCR is eligible to sell in future capability periods, and to prepare
for upcoming Capability Periods.
Offsetting the NYISO’s desire for strict adherence to the submission deadline in the
instant waiver request is the potential for an undesirable impact to the NYISO’s capacity market.
If the SCRs NYPA brings to market were to stop participating in the SCR program, the NYISO
12 New York Power Authority June 18, 2015 Request for Waiver at 6.
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would expect increased capacity costs which would be borne by New York State consumers.13
The NYISO agrees with the cost estimate provided by NYPA in its request for waiver. It is
important to note that this potential market impact is largely due to the combined effect of two
separate factors: (i) NYPA failed to submit performance data for its entire SCR portfolio, and
(ii) there was only one hour of data upon which to calculate SCR performance for the Capability Period. Potential market impacts, if the Commission were to deny NYPA’s request, would be particularly severe due to the specific facts and circumstances of this matter.
Following the close of the Winter 2014-2015 Capability Period, NYISO staff began its
process of preparing for the Winter 2015-2016 Capability Period, which includes reviewing data
and completing the various calculations necessary from all SCRs. If NYPA had not promptly
filed of its request for waiver, granting such request could result in undesirable outcomes such as
recalculating resource performance factors after the NYISO had begun preparing for the Winter
2015-2016 Capability Period. If the Commission grants the relief requested by NYPA by July
17, the NYISO will have sufficient time to: (i) process and review the data; (ii) complete all
required calculations prior to the seasonal set-up for the Winter 2015-2016 Capability Period; and (iii) to post performance factors for the upcoming Capability Period by the August 1
deadline in the NYISO’s ICAP Event Calendar.
IV. Communications and Correspondence
All communications and service with regard to this filing should be directed to:
Robert E. Fernandez, General Counsel
Raymond Stalter, Director, Regulatory Affairs
13 If the resources were to remain in the market at a derated capacity, there is not likely to be a significant market
impact. The NYISO has received no indication as to whether the affected resources would remain in, or leave, the
market.
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*Gregory J. Campbell, Attorney
New York Independent System Operator, Inc.
10 Krey Boulevard
Rensselaer, NY 12144
Tel: (518) 356-8540
Fax: (518) 356-8825
gcampbell@nyiso.com
* Person designated for receipt of service.
V.Conclusion
WHEREFORE, for the foregoing reasons, the NYISO respectfully request that the
Commission (i) grant this motion to intervene, and (ii) consider these comments in making its decision on NYPA’s request.
Respectfully submitted,
/s/ Gregory J. Campbell__
Gregory J. Campbell
Counsel for
New York Independent System Operator, Inc.
June 29, 2015
cc:Michael Bardee
Gregory Berson
Anna Cochrane
Morris Margolis
David Morenoff
Daniel Nowak
Kathleen Schnorf
Jamie Simler
Kevin Siqveland
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CERTIFICATE OF SERVICE
I hereby certify that I have this day served the foregoing document upon each person
designated on the official service list compiled by the Secretary in this proceeding in accordance
with the requirements of Rule 2010 of the Rules of Practice and Procedure, 18 C.F.R. §
385.2010.
Dated at Rensselaer, NY this 29th day of June, 2015.
By:/s/ John C. Cutting
John C. Cutting
New York Independent System Operator, Inc.
10 Krey Blvd.
Rensselaer, NY 12144 (518) 356-7521
