10 Krey Boulevard Rensselaer, NY 12144
September 17, 2014
By Electronic Delivery
Honorable Kimberly D. Bose, Secretary Federal Energy Regulatory Commission 888 First Street, NE
Washington, DC 20426
Re: New York Independent System Operator, Inc.’s Proposed Tariff
Amendments to Permit Information-Sharing with Pipelines and LDCs; Docket No. ER14-___-000
Dear Ms. Bose:
Pursuant to Section 205 of the Federal Power Act1 and consistent with FERC Order No. 787, the New York Independent System Operator, Inc. (“NYISO”) hereby submits proposed
amendments to its Open Access Transmission Tariff (“OATT”) to allow the NYISO to share
Confidential Information2 concerning gas-fueled generation with the operating personnel of the interstate natural gas pipeline companies—and in more limited circumstances, with the operating personnel of intrastate natural gas pipelines companies and natural gas local distribution
companies (“LDCs”)—consistent with the Federal Energy Regulatory Commission’s
(“Commission”) regulations under Order No. 787.3
I.Documents Submitted
1. This filing letter;
2. A clean version of the proposed revisions to the OATT, (“Attachment I”); and
3. A blacklined version of the proposed revisions to the OATT, (“Attachment II”).
II.Background and Justification
On November 15, 2013, the Commission issued a final rule in Order No. 787 adopting
regulations that provide explicit authority to interstate natural gas pipeline operators and public
utilities that own, operate or control facilities used for the transmission of electric energy in
interstate commerce to share non-public, operational information with each other to promote
1 16 U.S.C. §824d (2012).
2 Capitalized terms that are not otherwise defined in this filing letter shall have the meaning specified in the NYISO’s OATT and Market Administration and Control Area Services Tariff (“Services Tariff”).
3 Communication of Operational Information Between Natural Gas Pipelines and Electric Transmission Operators, 145 FERC ¶ 61,134 (2013) (“Order 787”).
1
Honorable Kimberly D. Bose September 17, 2014
Page 2
reliable service or operational planning on either system. The Commission found in Order No. 787 that the regulations will “help maintain the reliability of the pipeline and public utility
transmission service by permitting transmission operators to share information with each other
that they deem necessary to promote the reliability and integrity of their systems.”4 The
Commission further noted that it was “intentionally permitting the communication of a broad
range of non-public, operational information to provide flexibility to individual transmission
operators, who have the most insight and knowledge of their systems, to share that information which they deem necessary to promote reliable service on their system.”5 The Commission
ordered that—to the extent existing tariff provisions prevent the type of information sharing now permitted by these regulations—the transmission provider must make a filing with the
Commission to allow the sharing of such information.6
The NYISO OATT does not currently permit the broad range of communications with
interstate natural gas pipelines authorized by Order No. 787. Consequently, the NYISO herein
seeks to revise its OATT to permit such communications. The proposed OATT revision to
Attachment F, Section 12.4 modifies NYISO’s treatment of Confidential Information to permit
“communication of non-public, operational information concerning natural gas-fueled generation from resources located within the New York Control Area between the ISO and the operating
personnel of an interstate natural gas pipeline company for the purpose of promoting reliable
service or operational planning.”7
The proposed revisions offered by the NYISO in this filing will also permit, under certain
conditions, the sharing of non-public operational information with operating personnel of LDCs
and intrastate natural gas pipeline operators. This authorization is conditioned on such party or
parties acknowledging, in writing, that they are prohibited from disclosing, or using anyone as a
conduit for disclosure of, non-public, operational information received from NYISO to a third
party or affiliate, as contemplated by the Commission. The proposed OATT revision to
Attachment F, Section 12.4 thus modifies NYISO’s treatment of Confidential Information to
permit:
communication of non-public, operational information concerning
natural gas-fueled generation from resources located within the
New York Control Area between the ISO and the operating
personnel of natural gas local distribution companies and/or
intrastate natural gas pipeline operators for the purpose of
promoting reliable service or operational planning, provided that
such party has acknowledged, in writing, that it is prohibited from
disclosing, or using anyone as a conduit for disclosure of, non-
4 Order No. 787 at P 1.
5 Id. at P 41.
6 Id. at P 135.
7 The NYISO also proposes herein a ministerial grammatical revision to OATT, Attachment F, Section 12.4, changing the word “does” to “do.”
Honorable Kimberly D. Bose September 17, 2014
Page 3
public, operational information received from the ISO to an affiliate or third party.
The Commission declined in Order No. 787 to summarily extend the broader
communication tools proposed for interstate pipelines to LDCs and intrastate natural gas pipeline
operators generally, because the Commission acknowledged its limited jurisdiction with respect
to such entities.8 However, the Commission recognized that LDCs and other parties have a
significant role to play in maintaining the reliability of both interstate natural gas pipeline
transportation systems and electric transmission systems. As such, the Commission encouraged
electric transmission operators that could benefit from sharing such information with these
entities to offer tariff provisions that establish acceptable procedures for handling and protection
from inappropriate disclosure or use of such information - such as by use of a non-disclosure
agreement.9
In the New York Control Area, nearly 80% of natural gas-fueled generation is served by
a natural gas LDC or connected to an intrastate pipeline. Accordingly, permitting
communication of non-public operational information with LDCs and intrastate pipelines is of
particular benefit to reliability in New York. The NYISO—and its stakeholders, as evidenced by
their unanimous approval of the tariff revisions sought here—believes that the non-disclosure
provisions required here of LDCs and interstate pipelines provide assurances that the non-public
operational information to be shared will be adequately protected. The NYISO also consulted
with New York State Department of Public Service staff on the development of this tariff
language.
Taken together, the tariff revisions sought here will enable improved communication and
coordination between the control room operators of the gas and electric networks in New York,
as contemplated by the Commission in Order No. 787. Specifically, they will permit the NYISO
to provide gas pipeline operators and LDCs with operating schedules for individual generators to
indicate their expected gas needs. It will further allow real-time discussion among the NYISO
and gas suppliers concerning specific resources that may be needed to maintain reliability, in
normal and extreme weather conditions. This communication will promote enhanced situational awareness and assist in identifying and addressing circumstances which could affect bulk power system reliability in the event of fuel shortages.
III.Requested Effective Date
Pursuant to Section 205 of the Federal Power Act, the NYISO requests an effective date
of November 17, 2014 for its proposed Tariff revisions, sixty days after the submission of this
filing.
8 Id. at PP 56 - 57.
9 Id., n. 83.
Honorable Kimberly D. Bose September 17, 2014
Page 4
IV. NYISO Stakeholder Review and Board of Directors Approval
The NYISO’s Management Committee approved the proposed revisions to the OATT, Attachment F, Section 12.4, unanimously on July 30, 2014. The NYISO Board of Directors approved the proposed Tariff revisions on September 15, 2014.
V.Communications and Correspondence
All communications and service in this proceeding should be directed to:
Robert E. Fernandez, General Counsel
Raymond Stalter, Director, Regulatory Affairs
*Christopher R. Sharp, Compliance Attorney
New York Independent System Operator, Inc.
10 Krey Boulevard
Rensselaer, NY 12144
Tel: (518) 356-6000
Fax: (518) 356-8825
csharp@nyiso.com
* Designated to receive service.
VI.Service
The NYISO will send an electronic link to this filing to the official representative of each
of its customers, to each participant on its stakeholder committees, to the New York Public
Service Commission, 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.
VII. Conclusion
Wherefore, for the foregoing reasons, the NYISO respectfully requests that the Commission accept its proposed Tariff revisions for filing.
Respectfully submitted,
/s/ Christopher R. Sharp
Christopher R. Sharp, Compliance Attorney
New York Independent System Operator, Inc.
cc:Michael BardeeGregory Berson
Anna CochraneJignasa Gadani
Morris MargolisMichael McLaughlin
David MorenoffDaniel Nowak