10 Krey Boulevard Rensselaer, NY 12144
September 18, 2015
ELECTRONICALLY SUBMITTED
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 Tenth Informational Report on
Efforts to Develop Rules Addressing Compensation to Generators that Are
Determined to be Needed for Reliability; Docket No. ER10-2220-000.
Dear Secretary Bose:
In accordance with paragraph 54 and ordering paragraph “(C)” of the Federal Energy
Regulatory Commission’s (“Commission’s”) October 12, 2010, Order On Proposed Mitigation
Measures in Docket No. ER10-2220-000 (“Order”),1 the New York Independent System
Operator, Inc. (“NYISO”), hereby submits this Tenth Informational Report on Efforts to Develop
Rules Addressing Compensation to Generators that Are Determined to be Needed for Reliability
(“September 2015 Informational Report”). The NYISO submitted its Ninth Informational
Report on Efforts to Develop Rules Addressing Compensation to Generators that Are
Determined to be Needed for Reliability on March 23, 2015, (“March 2015 Informational
Report”). In footnote 44 of its Order the Commission stated that it does not intend to issue
public notices, accept comments, or issue orders on this Informational Report.
Paragraph 54 of the Order stated, in part, as follows:
Because fixed cost recovery issues do not go to whether NYISO’s mitigation
proposal is in itself just and reasonable, this proceeding is not the appropriate
forum in which to raise such issues. Further, commenters do not present factual
evidence that demonstrates that market participants generally will be unable to
recover their costs due to application of the proposed mitigation provisions. We
note, however, that the NYISO Board of Directors, in its July 29, 2010 decision
on the appeal of the NYISO Management Committee’s adoption of the instant
mitigation proposal, directed NYISO management to work with stakeholders to
examine the generation owners’ claims that existing cost recovery mechanisms
1New York Independent System Operator, Inc., 133 FERC ¶ 61,030. Since issuance of this Order in October 2010, the Commission has accepted tariff revisions to establish a New Capacity Zone comprised of Load Zones G, H, I and J, and a corresponding revision to the definition of “Rest of State.” See New York Independent System
Operator, Inc., 144 FERC ¶ 61,126, (Docket No. ER13-1380-000, accepting Services Tariff Sections 2.7, 2.18). Effective January 27, 2014, Rest of State is defined as Load Zones A through F.
Kimberly D. Bose, Secretary September 18, 2015
Page 2
are inadequate and to review the process that evaluates permanent solutions to
reliability problems. Accordingly, we believe the better course is to await the
outcome of the stakeholder process as directed by the NYISO Board of Directors. In this regard, we direct NYISO to file status reports every 180 days beginning 180 days from the date of this order for informational purposes only.44
44 The Commission does not intend to issue public notices, accept comments, or issue orders on such informational filings.
In compliance with the cited sections of the Order, the NYISO submits this Informational
Report.
I. Informational Report
A. Summary of the March 2015 Informational Report
On February 19, 2015, the Commission issued an order finding that “the NYISO Tariff
lacks provisions governing the rates, terms and conditions” for reliability must run (“RMR”)
service (“February 2015 Order”).2 The February 2015 Order requires the NYISO to submit the
following:
[P]roposed tariff revisions governing the retention of and
compensation to generating units required for reliability, including
procedures for designating such resources, the rates, terms and
conditions for RMR service, provisions for the allocation of costs
of RMR service, and a pro forma service agreement for RMR
service.3
The March 2015 Informational Report indicated that the NYISO began developing proposed tariff revisions in accordance with the February 2015 Order.
B.September 2015 Informational Report
Since the March 2015 Informational Report, the NYISO has worked diligently to develop
proposed tariff revisions in response to the February 2015 Order. During this time, the NYISO
conducted a series of stakeholder meetings at which it discussed and received input from
stakeholders on various aspects of its proposed response to the February 2015 Order and
associated draft tariff revisions. Stakeholders also have submitted written comments to the
NYISO, which it has considered as it develops its proposal in response to the February 2015
Order.
2 New York Independent System Operator, Inc., 150 FERC ¶ 61,116 (2015) at P 2.
3 Id. at P 4.
Kimberly D. Bose, Secretary September 18, 2015
Page 3
C.Next Steps
The NYISO will file proposed tariff revisions, which are due on October 19, 2015, in response to the Commission’s February 2015 Order in Docket No. EL15-37-000.4
Separately, on March 24, 2015, the NYISO submitted a Motion to Terminate the
Reporting Obligation for semiannual informational filings in this docket. The purpose of the
informational reports submitted in this docket has been superseded by the Commission’s
February 2015 Order.5 The tariff revisions required to comply with the February 2015 Order
eliminate the need to separately continue examining “the generation owners’ claims that existing
cost recovery mechanisms are inadequate and to review the process that evaluates permanent
solutions to reliability problems” as required by the October 2010 Order in Docket No. ER10-
2220-000. The NYISO awaits Commission action on its March 24, 2015 motion in this docket.
II. Service
The NYISO will send an electronic link to this Informational Report to the official
representative of each of its customers, to each participant on its stakeholder committees, to the
New York Public Service Commission, to all parties listed on the Commission’s official service
list in this Docket 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 Informational Report in compliance with the Commission’s Order.
Respectfully submitted,
/s/ James H. Sweeney
Rana Mukerji, Senior Vice President of Market Structures Robert E. Fernandez, General Counsel
James H. Sweeney, Attorney
New York Independent System Operator, Inc.
cc:Michael BardeeDaniel Nowak
Anna CochraneKathleen Schnorf
Morris MargolisJamie Simler
David MorenoffKevin Siqveland
4 Pursuant to the Commission’s June 4 delegated letter order, the date to submit the compliance filing was extended to October 19, 2015. See Notice of Extension of Time (June 4, 2015), Docket No. EL15-37-000.
5 See New York Independent System Operator, Inc., 150 FERC ¶ 61,116 (2015).
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 18th day of September, 2015.
/s/ Joy A. Zimberlin
Joy A. Zimberlin
New York Independent System Operator, Inc.
10 Krey Blvd.
Rensselaer, NY 12144 (518) 356-6207
