10 Krey Boulevard Rensselaer, NY 12144
April 18, 2013
By Electronic Delivery
Honorable Kimberly D. Bose, Secretary Federal Energy Regulatory Commission 888 First Street, NE
Washington, DC 20426
Re: Corrections to Buyer-Side Mitigation Narrative and Numerical Examples Referenced
in Docket Nos. EL11-42, ER12-2414, and EL12-98
Dear Ms. Bose:
The New York Independent System Operator, Inc. (“NYISO”) respectfully submits this
letter to officially inform the Commission, and the parties in the above captioned proceedings, of
certain corrections that were recently made to the “Buyer-Side Mitigation Narrative and
Numerical Example” that are posted on the NYISO’s website (“BSM Narrative and Numerical
Example”).1 The NYISO is submitting this letter solely for informational purposes. It is not
requesting that the Commission take any action, and does not believe that any is necessary, in
response to this letter. The NYISO does not believe that there is any reason for the Commission
to issue a formal Notice concerning this letter because it is not seeking any relief, is not seeking
to revise any prior NYISO filing, and the corrections described herein do not impact the disputed
issues before the Commission in the above-captioned proceedings.2 The NYISO is serving a
copy of this letter on all parties in the three dockets and posting a copy on its website.
Paragraph 50 of the Commission’s June 22, 2012 order in Docket No. EL11-423 (“June Order”) directed the NYISO to:
provide examples on its website to clarify, in general, how the mitigation
exemption test and offer floor calculations are implemented. The examples
1 The current (clean) version of the BSM Narrative and Numerical Example is posted at
<http://www.nyiso.com/public/webdocs/markets_operations/market_data/icap/In-
City_Mitigation_Documents/In-
City_Mitigation_Documents/BSM_Narrative_and_Numerical_Example_March_29_2013.pdf>.
2 The compliance filing in ER12-2414, and the complaint in Docket No. EL12-98 are pending before the Commission. The Commission issued an order on the complaint in Docket No. EL11-42 in 2012 but requests for clarification and rehearing are pending.
3 Astoria Generating Co., L.P., et al., 139 FERC ¶ 61,244 (2012).
Federal Energy Regulatory Commission Hon. Kimberly D. Bose
April 18, 2013
Page 2
should use hypothetical data coupled with detailed narratives explaining how NYISO performs each of the required mitigation tests as well as how it
determines and applies the offer floors for non-exempt projects.
On August 7, 2012, the NYISO posted the BSM Narrative and Numerical Example. The NYISO recently identified errors in the BSM Narrative and Numerical Example. It therefore
posted on its website a corrected (clean) version, and a redlined version showing changes to the August 7, 2012 version.
The NYISO previously submitted an informational filing in Docket No. EL11-42 when the BSM Narrative and Numerical Example was first posted. The NYISO is therefore filing this letter in Docket No. EL11-42 as an update and to continue to provide transparency. In addition, the NYISO is filing this letter in Docket No. ER12-2414 which proposed compliance tariff
revisions in response to the June Order and mentioned that the NYISO would be posting the
BSM Narrative and Numerical Example.
One of the corrections in the most recent version of the BSM Narrative and Numerical Example pertains to the NYISO’s method of calculating “Default Net CONE.” The NYISO determined that it was not using the correct level of excess when calculating that value. Among other things, Default Net CONE is used in the determination of the Offer Floor to be applied to entities determined to be subject to buyer-side mitigation.
The Complainant in Docket No. EL12-98 made multiple references to the calculation of its Offer Floor in its filings. It appears that no party in that proceeding directly referenced the BSM Narrative and Numerical Example but there was one reference to the June Order’s directive that it be posted. Accordingly, for the sake of completeness and transparency, the NYISO is
filing this letter in Docket No. EL12-98 solely to inform parties that it has posted a corrected
BSM Narrative and Numerical Example.
The NYISO is not submitting this letter in Docket No. EL11-50. The BSM Narrative and Numerical Example only pertains to the buyer-side mitigation rules for the New York City
capacity market in effect starting on November 27, 2010. They do not implicate the “Pre-
Amendment Rules” that were at issue in Docket No. EL11-50.
Respectfully submitted,
/s/ Gloria Kavanah
Gloria Kavanah
New York Independent System Operator, Inc.
CERTIFICATE OF SERVICE
I hereby certify that I have this day caused the foregoing document to be served 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 Commission Rules of Practice and
Procedure, 18 C.F.R. § 385.2010 (2012).
Dated at Washington, D.C. this 18th day of April, 2013.
/s/ Catherine Karimi
Catherine Karimi
Sr. Professional Assistant
Hunton & Williams LLP
2200 Pennsylvania Ave., NW
Washington, DC 20037
Tel: (202) 955-1500
Fax: (202) 778-2201
