UNITED STATES OF AMERICA
BEFORE THE
FEDERAL ENERGY REGULATORY COMMISSION
)
New York Independent System Operator, Inc.,)Docket No. ER12-1653-000
)
REQUEST FOR EXTENSION OF TIME TO SUBMIT COMPLIANCE FILING, SHORTENED NOTICE AND ANSWER PERIOD AND FOR EXPEDITED ACTION
OF THE NEW YORK INDEPENDENT SYSTEM OPERATOR, INC.
Pursuant to Rule 212 of the Federal Energy Regulatory Commission’s (Commission’s) Rules of Practice and Procedure,1 the New York Independent System Operator, Inc. (“NYISO”), respectfully submits this Request for Extension of Time to Submit Compliance Filing, Shortened Notice and Answer Period and for Expedited Action (“Request”).
On April 30, 2012, 2 as supplemented with further information on August 17, 2012,3 the
NYISO submitted a compliance filing in this docket to complete its initial obligations resulting
from the Commission’s directives in Order No. 755.4 The Commission conditionally accepted
in part and rejected in part NYISO’s initial compliance filing and ordered a further compliance
filing be made thirty days from the date of its Order.5 The NYISO intends to submit a
compliance filing addressing most of the requirements of the November Order within the
directed timeline. It seeks an extension solely with regard to that portion of the compliance
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2
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4
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18 C.F.R. § 385.212 (2008).
New York Independent System Operator, Inc., Docket No. ER12-1653-000, Letter to Kimberly D. Bose, April 30, 2012 (“April 2012 Filing”)
New York Independent System Operator, Inc., Docket No. ER12-1653-000, Letter to Kimberly D. Bose, August 17, 2012 (“August 2012 Filing”)
Frequency Regulation Compensation in the Organized Wholesale Power Markets, Order No. 755, 137
FERC 61,064 (2011), reh’g denied, Order No. 755-A, 138 FERC ¶ 61,123 (2011) (“Order No. 755”).
141 FERC 61,105 (November Order)
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filing that concerns an alternative to the NYISO’s proposed temporary Regulation Movement Bid Restriction which the Commission rejected.6 The NYISO seeks permission to file that
portion of its compliance filing on January 22, 2013. The NYISO also requests that the
Commission grant the motion expeditiously and issue an order granting the requested extension by November 30, 2012. To the extent necessary to allow for expedited Commission action, the NYISO requests that the Commission shorten, or waive, the normal answer period.7 Expedited Commission action would permit the NYISO to fully develop an alternative approach and
incorporate stakeholder comments and feedback.
I.Communications
Communications and correspondence regarding this filing should be directed to:
Robert E. Fernandez, General Counsel and Secretary
*Mollie Lampi, Assistant General Counsel
Raymond J. Stalter, Director of Regulatory Affairs
New York Independent System Operator, Inc.
10 Krey Boulevard
Rensselaer, N.Y. 12144
Tel: (518) 356-6000
Fax: (518) 356-4702
rfernandez@nyiso.com
mlampi@nyiso.com
rstalter@nyiso.com
* persons designated for service.
6 November Order ¶ 69.
7 The Commission recently announced that it was revising its procedural rules to establish a five day period for filing answers to motions requesting extensions of time. See Filing of Privileged Materials and Answers to
Motions, Order No. 769, 141 FERC 61,049 (October 18, 2012) Order No. 769 has not yet become effective. To the extent that a five day answer period would allow for expedited Commission action on this filing the NYISO would have no objection to adopting such a period in this proceeding.
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II.Request for Extension of Time to Submit Compliance Filing
On October 20, 2011 the Commission issued Order No. 7558 adopting several significant
changes to the manner in which Regulation Service is procured, scheduled and compensated.
The Commission ordered that Tariff revisions be filed in April, 2012 and that revisions to the
Regulation Service Market be implemented by October 25, 2012. The NYISO prepared new
tariff provisions in the third quarter of 2011 following the Commission’s decision and took its
proposal to the stakeholders in January 2012. The NYISO and its stakeholders met monthly
from January through April to craft the final compliance proposal in response to Oder No. 755
which the NYISO filed on April 30, 2012.9 The NYISO’s April 2012 filing was supplemented
on August 17, 2012 with proposed levels for the NYISO’s Regulation Movement Multiplier and
temporary Regulation Movement Bid Restriction.10 The Commission tentatively approved the
major portions of the NYISO’s proposal, pending a thirty-day compliance filing, but rejected its
proposed temporary Regulation Movement Bid Restriction.11 The Commission agreed, however,
that some method for mitigating the exercise of market power was justified while the NYISO
developed references for Regulation Movement Bids and required the NYISO to either explain
how its current mitigation methods are sufficient to address market power concerns in this
market during this period of time or to propose an alternative, interim market power mitigation method for this period of time.12
The NYISO has taken a preliminary look at its available options for protecting customers
against the exercise of market power in Regulation Movement for the period of time it will take
for the NYISO to develop appropriate reference prices for this product. Although it is unlikely
the NYISO will conclude that existing measures are adequate, the NYISO has not yet formulated
an alternative approach to the Bid Restriction to resolve the NYISO’s and its Market Monitoring
Unit’s concerns over the incentives Regulation providers may have to bid their marginal costs,
and the interaction of such incentives with existing mechanisms for addressing market power in
bidding Regulation Movement.
This issue is critical for NYISO stakeholders as inappropriately bid Regulation
Movement can quickly elevate the total cost of Regulation Service significantly above what
stakeholders pay today. Since Regulation Service providers have been including the cost of
Regulation Movement in their one-part Regulation Service bids heretofore, a significant increase in the cost of Regulation Service may well be unwarranted.
Therefore, the NYISO is seeking an extension to January 21, 2013 for this portion of its
compliance obligation. The NYISO needs to complete its analysis of this issue and, if an
alternative interim measure is appropriate, the NYISO also needs time to develop the alternative
measure(s), seek stakeholder comment, finalize the proposal and develop an implementation
plan. The implementation plan which is likely to include software code revisions will drive the
NYISO’s proposed effective date for its Order No. 755 revisions and thus needs to be developed
before the NYISO can completely respond to the Commission’s November Order.
12 Id.
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Holiday closures and the reduced number of business days between now and the end of the year complicate this task. As mentioned, this issue is of significant interest to stakeholders and they are likely to also need an adequate period of time to review whatever approach the NYISO proposes. An extension would assure that stakeholders have an adequate opportunity to provide feedback on a complete market mitigation proposal and to influence its final form.
For the reasons set forth in the preceding paragraphs, the NYISO respectfully submits that there is good cause for a brief extension of time in this proceeding.
III. Request for Shortened Notice and Comment Period and
Expedited Commission Action on this Request
Unless the Commission grants the NYISO’s requested extension of time to submit its
compliance filing, the NYISO is required to submit a complete compliance filing on December 6,
2012. In order to provide the NYISO with sufficient time to prepare and submit a complete
compliance filing if the Commission rejects this Request, the NYISO requests that the Commission, to the extent it deems necessary, adopt a a shortened answer period, and issue a ruling on this request by close-of-business on November 30, 2012. The NYISO will will notify its market participants that this filing has been made today.
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IV. Conclusion
WHEREFORE, for the foregoing reasons, the New York Independent System Operator, Inc. respectfully requests that the Commission grant it an extension of time to January 22, 2013 to submit that portion of its compliance filing in the above-captioned proceeding that concerns an alternative to the NYISO’s proposed temporary Regulation Movement Bid Restriction.
Respectfully submitted,
/s/ Mollie Lampi
Mollie Lampi
Assistant General Counsel
New York Independent System Operator, Inc.
10 Krey Blvd.
Rensselaer, New York 12144 (518) 356 7530
mlampi@nyiso.com
November 20, 2012
cc:Travis Allen
Michael A. Bardee
Gregory Berson
Anna Cochrane
Jignasa Gadani
Morris Margolis
Michael McLaughlin
Joseph McClelland
Daniel Nowak
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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 20th day of November, 2012.
/s/ Mohsana Akter
Mohsana Akter
Regulatory Affairs
New York Independent System Operator, Inc.
10 Krey Blvd.
Rensselaer, NY 12144 (518) 356-7560
