10 Krey Boulevard Rensselaer, NY 12144
August 5, 2014
By Electronic Filing
Honorable Kimberly D. Bose, Secretary Federal Energy Regulatory Commission 888 First Street, NE
Washington, DC 20426
Re: New York Independent System Operator, Inc., Docket No. ER13-298-___,
Compliance Filing Eliminating Mitigation Limits for 10-Minute Non-
Synchronized Reserve and New York City Day-Ahead Market Spinning Reserve
Dear Secretary Bose:
On November 2, 2012, the New York Independent System Operator, Inc. (“NYISO”)
filed proposed tariff revisions to allow the NYISO to phase in, over three or more steps, the
removal of the $2.52/MWh reference level cap on 10-Minute Non-Synchronized Reserve and the must Bid limit of $0/MWh on New York City Day-Ahead Market (“NYC DAM”) Spinning
Reserve (“November 2012 Filing”). The Commission accepted these revisions in its January 4, 2013 Order Accepting Proposed Tariff Revisions.1
The November 2012 Filing included proposed tariff changes to implement the first phase, or step, by increasing the reference level cap on 10-Minute Non-Synchronized Reserve2 to
$5.00/MWh and increasing the must Bid limit on NYC DAM Spinning Reserve to $5.00/MWh or less. These revisions became effective January 22, 2013.
1 New York Independent System Operator, Inc., Docket No. ER13-298-000 (unpublished letter order issued January 4, 2013).
2 Capitalized terms not specifically defined herein have the meaning set forth in the NYISO’s Market
Administration and Control Area Services Tariff (“Services Tariff”) or in its Open Access Transmission Tariff
(“OATT”).
Kimberly D. Bose, Secretary August 5, 2014
Page 2
The November 2012 Filing also indicated that the NYISO would make future
informational compliance filings and provide revised tariff language to implement the balance of
the phase-out plan, as approved by the Commission in this docket, following the
recommendation of the NYISO’s Market Monitoring Unit (“MMU”), Potomac Economics. This
is the second and final of those informational compliance filings including revised tariff sections.
The NYISO implemented the step-two increases on September 25, 2013 by increasing
the reference level cap on 10-Minute Non-Synchronized Reserve to $10.00/MWh and increasing the must Bid limit on NYC DAM Spinning Reserve to $10.00/MWh or less, pursuant to the MMU’s August 21, 2013 recommendation.3
Since implementation of the step-two increases on September 25, 2013, the MMU has
again evaluated the competitiveness of both the 10-Minute Non-Synchronized Reserve market
and Spinning Reserve market. The MMU analyzed the implementation of step-two limits from February through June, 2014. On July 21, 2014, the MMU presented, to the NYISO and Market Participants, its recommendation to move to the third step of the phase-out of these mitigation
measures.4 Step three of the phase-out, as described in the NYISO’s November 2012 filing, is to eliminate the reference level cap on 10-Minute Non-Synchronized Reserve and the must Bid limit on NYC DAM Spinning Reserve.
The NYISO, based on the MMU’s recommendation, hereby eliminates the reference
level cap on 10-Minute Non-Synchronized Reserve and the must Bid limit on NYC DAM
Spinning Reserve effective August 25, 2014. As described in the Implementation Plan portion of the NYISO’s November 2012 Filing, this compliance filing includes revised tariff sections
eliminating the limits specified in Services Tariff Sections 23.3.1.4.5 and 23.5.3.3 and
corresponding revisions to Services Tariff Section 30.4.6.2.12.
I.DOCUMENTS SUBMITTED
1.This filing letter;
2.A clean version of the proposed revisions to the NYISO’s Services Tariff
(“Attachment I”); and
3.A black lined version of the proposed revisions to the NYISO’s Services Tariff
(“Attachment II”).
3 See the MMU presentation to the Market Issues Working Group at
http://www.nyiso.com/public/webdocs/markets_operations/committees/bic_miwg/meeting_materials/2013-08-
21/MMU%20Evaluation%20of%20DAM%20Reserve%20Offers.pdf.
4 See the MMU presentation to the Market Issues Working Group at
http://www.nyiso.com/public/webdocs/markets_operations/committees/bic_miwg/meeting_materials/2014-07-
22/MMU%20Evaluation%20of%20DAM%20Reserve%20Offers%202014%20MIWG.pdf.
Kimberly D. Bose, Secretary August 5, 2014
Page 3
II.SERVICE LIST
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 all parties listed on the
Commission’s official service list in Docket No. ER13-298-000, 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.
III.CONCLUSION
The NYISO respectfully submits this compliance filing, consistent with the November
2012 Filing and January 4, 2013 Order, to notify the Commission that the NYISO intends to
implement the third step on August 25, 2014 as reflected in the attached Services Tariff sections.
Respectfully submitted,
/s/ James H. Sweeney
James H. Sweeney
New York Independent System Operator, Inc.
cc:Michael Bardee
Gregory Berson
Anna Cochrane
Jignasa Gadani
Morris Margolis
Michael McLaughlin
David Morenoff
Daniel Nowak
