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July 9, 2020

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., Response to Deficiency Letter
in Docket No. ER20-1718-000

Dear Ms. Bose:

The New York Independent System Operator, Inc. (“NYISO”) respectfully submits this
response to the Commission’s deficiency letter issued in the above-referenced docket on June 19,
2020 (the “Deficiency Letter”).  The Deficiency Letter directs the NYISO to respond to four
questions regarding the proposed enhancements to the “Part A Exemption Test” (the proposed
“Part A Enhancements”) under the NYISO’s “buyer-side” capacity market power mitigation
measures; the (“BSM Rules”).1  The NYISO submitted the proposed enhancements in its April 30
Filing in this proceeding.2  Responses to each of the Deficiency Letter’s questions are provided in
Attachment I to this letter.

The responses provided in Attachment I provide further evidence that the Part A

Enhancements are just, reasonable, and not unduly discriminatory.  They will improve the BSM
rules in light of changing system and market conditions, including the expected evolution of the
resource mix in New York State over the next decade and beyond.  They will not result in
capacity market price suppression.  As the NYISO has previously noted, the proposed Part A
Enhancements received super-majority stakeholder support and the unqualified endorsement of
the NYISO’s independent Market Monitoring Unit.3  Attachment II is an affidavit from Dr. David

B. Patton, NYISO’s independent Market Monitor, providing his analysis and support for the

proposed Part A Enhancements (including, specifically, the NYISO’s response to Question 4.d).4

1 The BSM Rules are set forth in Section 23.4.5.7 of the NYISO’s Market Administration and Control Area Services Tariff (the “Services Tariff”).

2 New York Independent System Operator, Inc., Proposed Enhancements to the “Part A

Exemption Test” Under the “Buyer-Side” Capacity Market Power Mitigation Measures, Docket No. ER20-1718-000 (April 30, 2020) (“April 30 Filing”).

3 See April 30 Filing at 21.  See also Motion to Intervene and Comments of the New York ISO’s Market Monitoring Unit, Docket No. ER20-1718-000 (May 21, 2020) at 3 (supporting the Part A
Enhancements “as filed.”)

4 Consistent with the Commission’s May 8, 2020 Supplemental Notice Waiving Regulations in Docket No. AD20-11-000, Dr. Patton’s affidavit does not include a notarized attestation.

Website: www.nyiso.com |   LinkedIn: NYISO |   Twitter: @NewYorkISO

Honorable Kimberly D. Bose July 9, 2020

Page 2

No party to this proceeding, including existing suppliers that would be directly impacted by new facilities receiving Part A Exemptions, has asked that the Commission reject them outright.

The NYISO understands that this response to the Deficiency Letter constitutes an

amendment to the April 30 Filing and that a new filing date will be established pursuant to Duke Power Co., 57 FERC ¶ 61,215 (1991).  Accordingly, the NYISO respectfully resubmits in
Attachments III and IV hereto, the blacklined and clean versions, respectively, of the proposed tariff revisions that it originally submitted in Attachments I and II of the April 30 Filing.  The
tariff revisions set forth in Attachments III and IV have the same text as in the April 30 Filing but an amended proposed effective date of September 8, 2020.  The previously proposed effective
date of June 30, 2020 has passed.  The NYISO further requests that the Commission issue an
order accepting all of the tariff revisions proposed in the April 30 filing, as amended here, and
making them effective on the day following the conclusion of the standard sixty day notice period under Section 205 of the Federal Power Act, i.e., on September 8, 2020.

The April 30 Filing sought a June 30 effective date for the proposed Part A Enhancements
so that they could be implemented as part of the Class Year 2019 process.  The April 30 Filing
also explained the importance of completing the Class Year 2019 process in a timely manner.5
The Deficiency Letter will necessitate some delay in the NYISO’s determinations under the BSM
Rules, and thus to the completion of the Class Year 2019 process.  However, if the Commission
issues an order accepting the proposed Part A Enhancements by September 8, these delays will
not be substantial and should not materially disrupt the Class Year 2019 process or stakeholder
expectations.

This filing will be posted on the NYISO’s website at www.nyiso.com.  In addition, the
NYISO will e-mail an electronic link to this filing to the official representative of each party to
this proceeding, to 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.

Please feel free to contact me if your office has any additional questions.
Respectfully Submitted,

/s/ David Allen

David Allen

Senior Attorney

New York Independent System Operator, Inc.

cc:Anna CochraneJohn C. MillerDouglas Roe

Jignasa GadaniDavid MorenoffFrank Swigonski

Jette GebhartDaniel NowakEric Vandenberg

Kurt LongoLarry ParkinsonGary Will

5 See April 30 Filing at 3, 21-22.

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