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Ph: 518.356.6000  |  Fax: 518.356.8899

April 1, 2020

By Electronic Delivery

Honorable Kimberly D. Bose, Secretary Federal Energy Regulatory Commission 888 First Street, NE

Washington, DC 20426

Re:    Annual Compliance Report of the New York Independent System Operator,
Inc. Regarding Unreserved Use and Late Study Penalties, Docket No. OA08-
109-000

Dear Secretary Bose:

Paragraph 472 of Order No. 890-A1 requires that “each transmission provider … report on its [unreserved use and late study] penalty assessments and distributions in an annual
compliance report to be submitted on or before the deadline for submitting FERC Form-1, as established by the [Federal Energy Regulatory] Commission’s Office of Enforcement each year.” Pursuant to that directive, the New York Independent System Operator, Inc. (“NYISO”)
respectfully submits its annual compliance report.

I.Unreserved Use Penalties

Unreserved use penalties are designed to address an issue that arises only under a

physical reservation regime.  The NYISO does not offer physical reservation based transmission
service and the NYISO tariffs do not provide for the imposition of unreserved use penalties.
Therefore, the NYISO neither imposed nor collected such penalties during the period since
March 31, 2019.

II.Late Study Penalties

In Order No. 890, the Commission adopted a rule requiring that “transmission providers
… submit a notification filing with the Commission in the event the transmission provider
processes more than 20 percent of non-affiliates’ [system impact and facilities] studies outside of
the 60-day due diligence deadlines in the pro forma OATT for two consecutive quarters.”2  The
Commission determined further that a “transmission provider … will be subject to an operational
penalty if the transmission provider continues to be out of compliance with the deadlines

1 Preventing Undue Discrimination and Preference in Transmission Service, Order No. 890-A, FERC Stats & Regs. ¶ 31,261 (2007).

2 Order No. 890 at P 1319.

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

Honorable Kimberly D. Bose April 1, 2020

Page 2

prescribed in the pro forma OATT for each of the two quarters following its notification filing and the Commission determines that no extenuating circumstances exist to excuse the
transmission provider’s non-compliance.”3

As explained in prior reports, the Commission has accepted modifications to the NYISO OATT transmission study deadlines.4  In the year since the NYISO’s last compliance report, the NYISO’s administration of transmission studies has not triggered the penalty or notification filing requirements under the NYISO OATT.  Therefore, the NYISO has not been assessed any transmission study penalties in the past year.

If you have any questions regarding this submission, please do not hesitate to contact the undersigned.

Respectfully submitted,

/s/ Sara B. Keegan

Sara B. Keegan
Counsel for the

New York Independent System Operator,
Inc.

cc:Anna Cochrane

Jignasa Gadani
Jette Gebhart
Kurt Longo
John C. Miller
David Morenoff
Daniel Nowak
Larry Parkinson
Douglas Roe
Frank Swigonski
Eric Vandenberg
Gary Will

3 Id. at P 1340.

4 See New York Independent System Operator, Inc., Letter Order, Docket No. ER08-1527-000 (November
4, 2008) (accepting the NYISO’s proposed modifications to its Open Access Transmission Tariff (“OATT”),
effective September 13, 2008, which modified and extended the transmission study deadlines under the pro forma
OATT).