10 Krey Boulevard Rensselaer, NY 12144
February 15, 2017
By Electronic Delivery
Honorable Kimberly D. Bose, Secretary Federal Energy Regulatory Commission 888 First Street, NE
Washington, DC 20426
Re: Docket No. ER17-386-000, New York Independent System Operator, Inc.
- Compliance Filing
Dear Secretary Bose:
On November 18, 2016, the New York Independent System Operator, Inc. (“NYISO”)
submitted in this proceeding proposed amendments to Section 5.14.1.2 of its Market
Administration and Control Area Services Tariff (“Services Tariff”) to define the ICAP Demand
Curves applicable for the 2017/2018 Capability Year (“2016 DCR Filing”).1 The NYISO also
proposed the methodologies and inputs that will be used in conducting the annual updates to
determine the ICAP Demand Curves for the 2018/2019, 2019/2020 and 2020/2021 Capability
Years.
On January 17, 2017, the Federal Energy Regulatory Commission (“Commission”)
accepted the NYISO’s proposal, subject to the requirement that the NYISO “submit a
compliance filing, within 30 days of the date of this order, revising its Services Tariff to remove
inclusion of SCR emissions controls in the peaking plant design for the NYCA ICAP Demand
Curve” (“2016 DCR Order”).2 The Commission further directed the NYISO “to update any and
all inputs affected by” the Commission’s directive to remove the inclusion of selective catalytic
reduction (“SCR”) emissions controls from the peaking plant design for the NYCA ICAP
Demand Curve.3
The NYISO submits this compliance filing to address the Commission’s directive in the
2016 DCR Order to revise the NYCA ICAP Demand Curve parameters and related inputs to
1 See Docket No. ER17-386-000, New York Independent System Operator, Inc., Proposed ICAP Demand Curves for the 2017/2018 Capability Year and Parameters for Annual Updates for Capability Years 2018/2019, 2019/2020 and 2020/2021 (November 18, 2016). Capitalized terms not otherwise
defined herein shall have the meaning specified in the Services Tariff and the NYISO Open Access
Transmission Tariff (“OATT”).
2 New York Independent System Operator, Inc., 158 FERC ¶ 61,028 at P 58 (2017).
3 Id.
Honorable Kimberly D. Bose February 15, 2017
Page 2
reflect removal of SCR emissions controls from the peaking plant design for this capacity
region.4
I.Documents Submitted
1.This filing letter;
2.A blacklined version of the proposed compliance revisions to Section 5.14.1.2 of the
Services Tariff (“Attachment I”); and
3.A clean version of the proposed compliance revisions to Section 5.14.1.2 of the
Services Tariff (“Attachment II”).
II.Description of Compliance Filing and Tariff Revisions
In compliance with Ordering Paragraph B of the 2016 DCR Order, the NYISO has
revised the parameters of the NYCA ICAP Demand Curve for the 2017/2018 Capability Year set forth in the table in Section 5.14.1.2 of the Services Tariff to reflect removal of the SCR
emissions controls from the peaking plant design for this capacity region. The revised reference point price for the NYCA ICAP Demand Curve for the 2017/2018 Capability Year is $9.08 per kW-month and the revised maximum value is $15.85 per kW-month.
The NYISO has also revised the data values for the NYCA ICAP Demand Curve set
forth in the table in Section 5.14.1.2.2.3 of the Services Tariff to reflect the modification to the
peaking plant design directed by the Commission. The revised peaking plant gross cost for the
NYCA ICAP Demand Curve for the 2017/2018 Capability Year is $126.79 per kW-year and the
revised net Energy and Ancillary Services revenue offset value is $35.70 per kW-year.
The NYISO also provides updates below to certain of tables included in the 2016 DCR
Filing to reflect the determinations set forth in the 2016 DCR Order.5 The tables summarize
4 As part of developing this compliance filing, the NYISO has also posted an updated version of
the net Energy and Ancillary Services (“EAS”) revenues model to its website. The updated model has
disabled the functionality to assess locations and peaking plant designs not approved by the Commission
in the 2016 DCR Order. No other changes to the model’s logic were made. This streamlined version of
the net EAS revenues model will be used by the NYISO in conducting the annual updates to determine
the ICAP Demand Curves for the 2018/2019 through 2020/2021 Capability Years. The streamlined
version of the net EAS revenues model is posted on the NYISO’s website within the “Demand Curve
Reset Annual Updates” section of the “Reference Documents” folder, available at:
http://www.nyiso.com/public/markets_operations/market_data/icap/index.jsp. The version of the model
containing all of the peaking plant designs and locations assessed during the 2016 ICAP Demand Curve reset (“DCR”) process remains available on the NYISO’s website within the “Final Net EAS Model
September 13 2016” section of the “2017-2021 Demand Curve Reset” subfolder of the “Reference
Documents” folder, available at:
http://www.nyiso.com/public/markets_operations/market_data/icap/index.jsp.
Honorable Kimberly D. Bose February 15, 2017
Page 3
certain of the data and inputs to be used by the NYISO in conducting the tariff prescribed annual
updates to determine the ICAP Demand Curves for the 2018/2019 through 2020/2021 Capability
Years.6
The table below summarizes the data inputs that will be used for this reset period in determining the net EAS revenue projections for each peaking plant.
Data Input Value/Source
Factor Used in Annual
Updates for Each ICAP
Demand Curve
Net EAS Revenue Model, including Commitment and Dispatch Logic
NYCA7G-J Locality8NYCLI
The net EAS revenues model is posted on the NYISO website within the “Demand Curve Reset Annual Updates” section of the “Reference Documents” folder, available at:
http://www.nyiso.com/public/markets_operations/market_data/icap/ind ex.jsp
1x0 Siemens
Peaking plant
Variable Cost per Start ($/Start) (per unit)9
SGT6-5000F5
without
SCR/CO
$10,300
1x0 Siemens1x0 Siemens1x0 Siemens
SGT6-5000F5SGT6-5000F5SGT6-5000F5
with SCR/COwith SCR/COwith SCR/CO
$10,500$11,000$10,900
The applicable values are provided within the “Lummus Performance
and OM Data” spreadsheet posted with the net EAS revenues model
Net Plant Heat Rate (HHV(see “Demand Curve Reset Annual Updates” section of the “Reference
basis), DegradedDocuments” folder, available at:
http://www.nyiso.com/public/markets_operations/market_data/icap/ind
ex.jsp)
5 2016 DCR Filing at 42-45. The NYISO has also updated certain of the hyperlinks within the
first table to provide access to the streamlined version of the net EAS revenues model recently posted to
its website.
6 The table detailing the data sources and weighting factors that will be used for this reset period
in calculating the composite escalation factor for annually adjusting the levelized localized embedded cost
of each peaking plant is unaltered by the Commission-directed changes to the NYCA ICAP Demand
Curve peaking plant design and, therefore, is not reproduced herein. See 2016 DCR Filing at 41.
7 The data inputs for NYCA are based on the use of Load Zone F as the location for the NYCA ICAP Demand Curve peaking plant.
8 The data inputs for the G-J Locality are based on the use of Load Zone G (Dutchess County) as the location for the G-J Locality ICAP Demand Curve peaking plant.
9 The total start-up cost is calculated as the start-up fuel quantity multiplied by the applicable fuel
price, plus the variable O&M cost per start. The start-up fuel quantity for each peaking plant is provided
within the “Lummus Performance and OM Data” spreadsheet posted with the net EAS revenues model
(see “Demand Curve Reset Annual Updates” section of the “Reference Documents” folder, available at:
http://www.nyiso.com/public/markets_operations/market_data/icap/index.jsp).
Honorable Kimberly D. Bose February 15, 2017
Page 4
Data Input Value/Source
Factor Used in Annual
Updates for Each ICAP
Demand Curve
Energy Prices (day-ahead and real-time)
Operating Reserves Prices
(day-ahead and real-time)
Level of Excess Adjustment Factors
Ancillary Services Adder for Voltage Support Service
($/kW-yr.)
Peaking plant primary Fuel
Type
Peaking plant secondary Fuel Type (if any)
NYCA7G-J Locality8NYCLI
This data is publically available through the NYISO DSS System, via the NYISO website
This data is publically available through the NYISO DSS System, via the NYISO website
The applicable values are provided within the “LOE AFs for Net EAS” spreadsheet posted with the net EAS revenues model (see “Demand Curve Reset Annual Updates” section of the “Reference Documents” folder, available at:
http://www.nyiso.com/public/markets_operations/market_data/icap/ind ex.jsp)
$1.43$1.43$1.43$1.43
Natural GasNatural GasNatural GasNatural Gas
-ULSDULSDULSD
Fuel tax adder - Gas--6.9%1.0%
Fuel tax adder - ULSD
Transportation cost adder -
Gas ($/MMBtu)
Transportation cost adder -
ULSD ($/MMBtu)
Real-time intraday gas premium/discount
Fuel Pricing Point - Gas
Fuel Pricing Point - ULSD
-
$0.27
-
10%
Iroquois
Zone 2
-
-
$0.27
$1.50
10%
Iroquois
Zone 2
New York
Harbor
4.5%-
$0.20$0.25
$1.50$1.50
20%30%
TranscoTransco
Zn 6 NYZn 6 NY
New YorkNew York
Harbor Harbor
Honorable Kimberly D. Bose February 15, 2017
Page 5
Data Input Value/Source
Factor Used in Annual
Honorable Kimberly D. Bose February 15, 2017
Page 6
The table below summarizes the data inputs that will be used for this reset period in calculating the ICAP Demand Curve parameters.10
Data Input Value
Factor Used in Annual Updates for Each ICAP Demand Curve
Type of
Value
NYCA11G-J Locality12NYCLI
ICAP Demand Curve Parameter Values
Fixed for
Zero-crossing pointReset Period112%115%118%118%
Reference Point Price Calculation
Peaking Plant Net
Degraded Capacity
(DMNC ICAP MW) Peaking Plant Summer Capability Period
DMNC
Peaking Plant Winter Capability Period
DMNC
Level of Excess
Fixed for
Reset Period
Fixed for
Reset Period
Fixed for
Reset Period
Fixed for
Reset Period
217.0218.0217.6219.1
224.6226.8226.9224.9
230.3230.3228.7230.3
100.6%101.5%102.3% 103.9%
III.
WSR Values
Effective Date
Updated
Annually
These values are updated annually and will be publically available via the NYISO website
Consistent with the effective date accepted by the 2016 DCR Order, the NYISO respectfully requests an effective date of January 17, 2017 for the compliance revisions to Section 5.14.1.2 of the Services Tariff.
IV.Service
The NYISO will send an electronic link to this filing to the official representative of each
party to this proceeding, the official representative of each of its customers, each participant on
its stakeholder committees, the New York State Public Service Commission, and the New Jersey
10 This table includes correction of the typographical error included in the 2016 DCR Filing with respect to the degraded capacity value for the G-J Locality ICAP Demand Curve peaking plant. See Docket No. ER17-386-000, supra, Filing to Correct Typographical Error (December 8, 2016).
11 The data inputs for NYCA are based on the use of Load Zone F as the location for the NYCA ICAP Demand Curve peaking plant.
12 The data inputs for the G-J Locality are based on the use of Load Zone G (Dutchess County) as the location for the G-J Locality ICAP Demand Curve peaking plant.
Honorable Kimberly D. Bose February 15, 2017
Page 7
Board of Public Utilities. In addition, the complete filing will be posted on the NYISO’s website
at www.nyiso.com.
V.Conclusion
The NYISO respectfully requests: (i) that the Commission accept this compliance filing; and (ii) an effective date of January 17, 2017 for the compliance revisions to Section 5.14.1.2 of the Services Tariff.
Respectfully submitted,
/s/ Garrett E. Bissell
Garrett E. Bissell
Senior Attorney
New York Independent System Operator, Inc.
10 Krey Blvd.
Rensselaer, New York 12144 (518) 356-6107
gbissell@nyiso.com
cc:Michael Bardee
Nicole Buell
Anna Cochrane
Kurt Longo
Max Minzner
Daniel Nowak
Larry Parkinson
J. Arnold Quinn
Douglas Roe
Kathleen Schnorf
Jamie Simler
Gary Will
