10 Krey Boulevard Rensselaer, NY 12144
March 16, 2016
ELECTRONICALLY SUBMITTED
Kimberly D. Bose
Secretary
Federal Energy Regulatory Commission 888 First Street, N.E.
Washington, D.C. 20426
Re: New York Independent System Operator, Inc.’s Eleventh Informational Report on
Efforts to Develop Rules Addressing Compensation to Generators that Are
Determined to be Needed for Reliability; Docket No. ER10-2220-000.
Dear Secretary Bose:
In accordance with paragraph 54 and ordering paragraph “(C)” of the Federal Energy
Regulatory Commission’s (“Commission’s”) October 12, 2010 Order On Proposed Mitigation
Measures in Docket No. ER10-2220-000 (“October 2010 Order”),1 the New York Independent
System Operator, Inc. (“NYISO”), hereby submits this Eleventh Informational Report on Efforts
to Develop Rules Addressing Compensation to Generators that Are Determined to be Needed for
Reliability (“March 2016 Informational Report”). The NYISO submitted its Tenth Informational
Report on Efforts to Develop Rules Addressing Compensation to Generators that Are
Determined to be Needed for Reliability on September 18, 2015 (“September 2015 Informational
Report”). In footnote 44 of its October 2010 Order the Commission stated that it does not
intend to issue public notices, accept comments, or issue orders on this Informational
Report.
Paragraph 54 of the October 2010 Order stated, in part, as follows:
Because fixed cost recovery issues do not go to whether NYISO’s mitigation
proposal is in itself just and reasonable, this proceeding is not the appropriate
forum in which to raise such issues. Further, commenters do not present factual
evidence that demonstrates that market participants generally will be unable to
recover their costs due to application of the proposed mitigation provisions. We
note, however, that the NYISO Board of Directors, in its July 29, 2010 decision
on the appeal of the NYISO Management Committee’s adoption of the instant
mitigation proposal, directed NYISO management to work with stakeholders to
examine the generation owners’ claims that existing cost recovery mechanisms
1New York Independent System Operator, Inc., 133 FERC ¶ 61,030. Since issuance of this Order in October 2010, the Commission has accepted tariff revisions to establish a New Capacity Zone comprised of Load Zones G, H, I and J, and a corresponding revision to the definition of “Rest of State.” See New York Independent System
Operator, Inc., 144 FERC ¶ 61,126, (Docket No. ER13-1380-000, accepting Services Tariff Sections 2.7, 2.18). Effective January 27, 2014, Rest of State is defined as Load Zones A through F.
Kimberly D. Bose, Secretary March 16, 2016
Page 2
are inadequate and to review the process that evaluates permanent solutions to
reliability problems. Accordingly, we believe the better course is to await the
outcome of the stakeholder process as directed by the NYISO Board of Directors. In this regard, we direct NYISO to file status reports every 180 days beginning 180 days from the date of this order for informational purposes only.44
44 The Commission does not intend to issue public notices, accept comments, or issue orders on such informational filings.
In compliance with the cited paragraphs of the October 2010 Order, the NYISO submits this Informational Report.
I.Informational Report
A.Summary of the September 2015 Informational Report
On February 19, 2015, the Commission issued an order finding that “the NYISO Tariff
lacks provisions governing the rates, terms and conditions” for reliability must run (“RMR”)
service (“February 2015 Order”).2 The February 2015 Order requires the NYISO to submit the
following:
[P]roposed tariff revisions governing the retention of and
compensation to generating units required for reliability, including
procedures for designating such resources, the rates, terms and
conditions for RMR service, provisions for the allocation of costs
of RMR service, and a pro forma service agreement for RMR
service.3
The September 2015 Informational Report indicated that the NYISO was working
diligently to develop proposed tariff revisions in response to the February 2015 Order.
B.March 2016 Informational Report
The NYISO submitted proposed RMR tariff revisions to the Commission in Docket No.
ER16-120-000 on October 19, 2015,4 in compliance with the February 2015 Order’s directives in
Docket No. EL15-37-000.5 The proposed tariff revisions remain pending before the
Commission.
2 New York Independent System Operator, Inc., 150 FERC ¶ 61,116 (2015) at P 2.
3 Id. at P 4.
4 See New York Independent System Operator, Inc., Compliance Filing, Docket Nos. EL15-37-002 and ER16-120-
000 (October 19, 2015).
5 Pursuant to the Commission’s June 4 delegated letter order, the date to submit the compliance filing was extended to October 19, 2015. See Notice of Extension of Time (June 4, 2015), Docket No. EL15-37-000.
Kimberly D. Bose, Secretary March 16, 2016
Page 3
C.Next Steps
The NYISO awaits Commission action on its October 19, 2015 compliance filing.
Separately, on March 24, 2015, the NYISO submitted a Motion to Terminate the
Reporting Obligation for semiannual informational filings in this docket. The purpose of the
informational reports submitted in this docket has been superseded by the Commission’s
February 2015 Order.6 The tariff revisions required to comply with the February 2015 Order
eliminate the need to separately continue examining “the generation owners’ claims that existing
cost recovery mechanisms are inadequate and to review the process that evaluates permanent
solutions to reliability problems” as required by the October 2010 Order in Docket No. ER10-
2220-000. The NYISO awaits Commission action on its March 24, 2015 motion in this docket.
II.Service
The NYISO will send an electronic link to this Informational Report to the official
representative of each of its customers, to each participant on its stakeholder committees, to the
New York Public Service Commission, to all parties listed on the Commission’s official service
list in this Docket and to the New Jersey Board of Public Utilities. In addition, the complete
filing will be posted on the NYISO’s website at www.nyiso.com.
III.Conclusion
The NYISO respectfully submits this Informational Report in compliance with the Commission’s October 2010 Order.
Respectfully submitted,
/s/ James H. Sweeney
Rana Mukerji, Senior Vice President of Market Structures Robert E. Fernandez, General Counsel
James H. Sweeney, Attorney
New York Independent System Operator, Inc.
cc:Michael BardeeLarry Parkinson
Adam BednarczykJ. Arnold Quinn
Anna CochraneDouglas Roe
Kurt LongoKathleen Schnorf
Max MinznerJamie Simler
Daniel NowakGary Will
6 See New York Independent System Operator, Inc., 150 FERC ¶ 61,116 (2015).
