10 Krey Boulevard Rensselaer, NY 12144
November 30, 2012
Submitted Electronically
Hon. 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 Compliance Filing in Docket
No. ER12-2568-___
Dear Ms. Bose:
In compliance with paragraphs 36 and 37 and ordering paragraph “B” of the Federal Energy Regulatory Commission’s (“Commission” or “FERC”) October 31, 2012 Order
Accepting Proposed Tariff Revisions Subject to Conditions that was issued in Docket No.
ER12-2568-000 (“October Order”),1 the New York Independent System Operator, Inc.
(“NYISO”) hereby respectfully submits proposed revisions to its Market Administration and Control Area Services Tariff (“Services Tariff”). The October Order conditionally accepted a filing made by the NYISO on August 31, 2012 (“August Filing”), but directed the NYISO to submit revised tariff sections with certain changes.
I.LIST OF DOCUMENTS SUBMITTED
The NYISO submits the following documents:
1.This filing letter;
2.A clean version of the proposed revisions to the NYISO’s Services Tariff
(“Attachment I”); and
3.A blacklined version of the proposed revisions to the NYISO’s Services Tariff
(“Attachment II”).
1New York Independent System Operator, Inc., 141 FERC ¶ 61,081 (2012) (“October Order”).
Honorable Kimberly D. Bose November 30, 2012
Page 2
II.COPIES OF CORRESPONDENCE
Correspondence concerning this filing should be served on:
Robert E. Fernandez, General Counsel
Raymond Stalter, Director of Regulatory Affairs *Carl Patka, Assistant General Counsel
*Kristin A. Bluvas, Attorney
New York Independent System Operator, Inc.
10 Krey Boulevard
Rensselaer, NY 12144
Tel: (518) 356-6220
Fax: (518) 356-7678
cpatka@nyiso.com
kbluvas@nyiso.com
* Persons designated for receipt of service
III.BACKGROUND
In its August Filing, the NYISO proposed extensive changes to section 15.5 (Rate
Schedule 5) of its Services Tariff, as well as sections 6.6 and 30.2 of its Open Access
Transmission Tariff. Those changes reflected the results of months of negotiations with the
NYISO stakeholders and represented a consensus agreement to revise numerous aspects of
the program under which Consolidated Edison Company of New York, Inc. (“Con Edison”)
provides System Restoration and Black Start Services to the New York City Area. In the Con
Edison System Restoration and Black Start Service Plan (“Con Edison Plan”), generators are
designated to provide services and compensated under the NYISO’s Services Tariff. The
revisions were intended to enhance the ability of the NYISO and Con Edison to procure and
retain sufficient generation resources in the Con Edison Plan, improve generator testing
requirements, help maintain black start performance, and increase compensation paid to
generators.
NYISO submitted its filing to the Commission on August 31, 2012. On October 31, 2012, the Commission issued an order accepting NYISO’s proposal, subject to conditions, to become effective November 1, 2012, as requested. The Commission found NYISO’s
proposed revisions “appear[ed] to be a reasonable step in meeting concerns over the adequacy of black start service to support a local system restoration in New York City.”2 However, the Commission ordered the NYISO to make certain revisions within 30 days, which the NYISO submits in the instant compliance filing.
2 See October Order, ¶ 34.
Honorable Kimberly D. Bose November 30, 2012
Page 3
Specifically, the Commission directed the NYISO to re-submit section 15.5 of the
Services Tariff to: (1) remove the reference to section 206 or the Federal Power Act and to the
agreement among the parties that the rates would be unjust and unreasonable for Generators
granted a unit-specific rate, (2) revise the tariff provisions to set forth the procedure and cost
showing for a Generator to obtain a special, unit-specific rate, (3) revise the tariff provisions
to specify that NYISO will file the eTariff record change reflecting the generator’s requested
special, unit-specific rate in a filing made jointly with the Generator, and (4) add a provision
stating that, upon receipt from Con Edison, NYISO will file with the Commission as an
information filing the revised Con Edison Plan for system restoration.
IV. TARIFF DESCRIPTION AND JUSTIFICATION
To comply with the Commissions directives, the NYISO submits the following changes to the tariff language proposed in its August Filing.
First, in compliance with the Commission’s directive to file an updated Con Edison
System Restoration Plan, the NYISO proposes to add the following sentence to section 15.5.4 of Rate Schedule 5.
Within thirty (30) days of receipt of an updated Consolidated
Edison Plan, including changes to unit designations as described in this section, the ISO will file a copy with FERC on an
informational basis with a non-public Critical Energy
Infrastructure Information designation.
This additional requirement will ensure that the Commission receives timely updates to the Con Edison Plan and is aware of which units are designated to provide these services.
This filing will be made on an informational basis and will be filed with the Commission with a non-public Critical Energy Infrastructure Information (“CEII”) designation in order to
appropriately protect it.
Next, the NYISO proposes several changes to section 15.5.4.2.3.2 to accommodate the
Commission’s directives. The NYISO has removed the statement that a generator seeking a
unit-specific rate must make a filing under section 206 of the Federal Power Act and the
reference to the agreement among the parties that the standard proxy rate would be “unjust
and unreasonable for those unit(s).” Instead, in compliance with the Commission’s order, the
NYISO is proposing an alternative process for a Generator to petition for a special, unit-
specific rate that is greater than the proxy rate offered in section 15.5.4.2.3.1. Instead of the
Generator directly filing with the Commission, it will now submit its cost information to the
NYISO. The NYISO will then have the obligation to submit the filing to FERC through its
eTariff filing system.
As directed by the October Order, the proposed tariff amendments set forth the details
of the procedure for a Generator to submit this information to the NYISO, the specific
information that a Generator must submit, as well as a timeframe under which the NYISO
Honorable Kimberly D. Bose November 30, 2012
Page 4
will submit the documentation to FERC. The amendments outline the duties of the parties in
relation to the submission and the various burdens that apply. Since the unit-specific rate
would be filed under the NYISO’s Services Tariff as an appendix to Rate Schedule 5, the
NYISO will be the filing party. This procedure will allow the NYISO to file the tariff section
containing the proposed redlined appendix simultaneously with the Generator’s cost
information for the Commission’s review. The tariff states that while the NYISO is the filing
party and the NYISO is making a joint filing, it is the Generator’s burden to show in its
application that the submission meets the cost showing requirements. The NYISO will not
comment on or add to the substance of the filing in the initial joint submission to the
Commission, but will only offer its comments, if any, during the FERC noticed comment
period with all other interested parties.
The NYISO also lists in the tariff the specific information that Generators seeking a
unit-specific rate should submit to the NYISO. NYISO will make only a threshold
determination as to whether a Generator has submitted the required information. Specifically,
the Generator has the burden to submit actual incremental cost documentation showing:
(1) that the actual incremental costs are reasonably and prudently
incurred,
(2) that the actual incremental costs are incurred solely for the
purpose of providing Restoration Services, and
(3) that the actual incremental costs exceed the “proxy rate.”
Finally, the tariff states that the NYISO will submit the information to FERC within
30 days of receiving complete cost documentation from the Generator. The obligation is on
the Generator to notify the NYISO that it considers its submission final and that it does not
intend to submit additional documentation. The NYISO would have 30 days from receiving
all necessary documentation to review the submission and confirm that information has been submitted for all elements of the cost showing requirements, prepare a filing letter, and submit the documentation to FERC.
The NYISO also made one minor clarification, changing the word “addendum” to
“appendix” to maintain consistent vocabulary throughout Rate Schedule 5 and its Services
Tariff.
V.EFFECTIVE DATE
The NYISO requests an effective date for these tariff amendments of November, 1 2012, which is consistent with what NYISO requested for the amendments proposed in its August Filing and that the Commission accepted in its October Order.
Honorable Kimberly D. Bose November 30, 2012
Page 5
VI.SERVICE
The NYISO will e-mail a copy of this filing to the official representative of each party
to this proceeding, to the New York Public Service Commission, and to the New Jersey Board
of Public Utilities. In addition, the NYISO will post this filing on the NYISO’s website at
www.nyiso.com and will email the electronic link to the filing to each of its customers and to
each participant of its stakeholder committees.
VII. CONCLUSION
WHEREFORE, for the foregoing reasons, the NYISO respectfully requests that the
Commission accept this filing and the proffered tariff changes as fulfilling its obligation to
comply with paragraphs 36 and 37 and ordering paragraph B of the October 31, 2012 Order.
Respectfully submitted,
/s/ Kristin A. Bluvas
Kristin A. Bluvas, Attorney
New York Independent System Operator, Inc.
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 30th day of November, 2012.
/s/ Joy A. Zimberlin
Joy A. Zimberlin
New York Independent System Operator, Inc.
10 Krey Blvd.
Rensselaer, NY 12144 (518) 356-6207
