10 Krey Boulevard Rensselaer, NY 12144
October 26, 2010
Submitted Electronically
Kimberly D. Bose, Secretary
Federal Energy Regulatory Commission 888 First Street, N.E.
Washington, D.C. 20426
Re: Compliance Filing of the New York Independent System Operator, Inc. to
Remove Section 23.8 of its Market Power Mitigation Measures:
Docket No. ER10-2220-____
Dear Ms. Bose:
In compliance with the Commission’s October 12, 2010 order in Docket No.
ER10-2220-000 (the “October 12 Order”),1 the New York Independent System Operator,
Inc. (“NYISO”) respectfully submits proposed revisions to the Market Power Mitigation
Measures (“Mitigation Measures”) that are set forth in Attachment H to its Market
Administration and Control Area Services Tariff (“Services Tariff”). The October 12
Order accepted for filing a series of proposed revisions to the Mitigation Measures that
permit the NYISO to apply a “generic” market power mitigation measure to Generators
located outside the New York City Constrained Area2 at times when they are committed
outside the NYISO’s economic evaluation process to address a reliability need and
possess market power.
With the new “generic” mitigation measure in place, the NYISO no longer needs to retain a Generator-specific mitigation measure that it was authorized to add to its
Market Mitigation Measures in Docket No. ER09-1682.3 This filing proposes a tariff
revision directed by the Commission in paragraph 43 and ordering paragraph (B) of its October 12 Order, namely, “to submit a compliance filing within 15 days of the date of this order to remove section 23.8 (Generator-Specific Mitigation Measure) from
Attachment H of the Services Tariff.”
1New York Independent System Operator, Inc., 133 FERC ¶ 61,030 (2010).
2 The term Constrained Area is defined in Section 23.2.1 of the Mitigation Measures.
3 See New York Independent System Operator, Inc., 131 FERC ¶ 61,169 (2010).
Kimberly D. Bose, Secretary October 26, 2010
Page 2
I.List of Documents Submitted with this Filing
1.This filing letter;
2.A clean version of the proposed modifications to Services Tariff Attachment
H; and
3.A blacklined version of the proposed modifications to Services Tariff
Attachment H.
II.Copies of Correspondence
Communications and correspondence regarding this filing should be directed to:
Robert E. Fernandez
General Counsel
Elaine D. Robinson
Director of Regulatory Affairs *Alex M. Schnell
New York Independent System Operator, Inc.
10 Krey Boulevard
Rensselaer, NY 12144
Tel: (518) 356-8707
Fax: (518) 356-7678
aschnell@nyiso.com
*Person designated for receipt of service.
III.Proposed Effective Date
The New York Independent System Operator, Inc. respectfully requests that the Commission accept the proposed tariff revisions for filing with an effective date of December 27, 2010, more than 60 days after the date of this filing.
IV.Service
The NYISO will send an electronic link4 to this filing to the official representative
of each of its Customers, to each participant on its stakeholder committees, to the New
York Public Service Commission, and to the electric utility regulatory agency of New
Jersey. The filing will be posted on the NYISO’s website at www.nyiso.com.
418 C.F.R. § 35.2(e)(2).
Kimberly D. Bose, Secretary October 26, 2010
Page 3
V.Conclusion
For the reasons explained above, the NYISO respectfully requests that the
Commission accept its proposed tariff revisions effective December 27, 2010.
Respectfully submitted,
/s/ Alex M. Schnell
Alex M. Schnell
New York Independent System Operator, Inc.
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 26th day of October, 2010
/s/ Joy A. Zimberlin
Joy A. Zimberlin
New York Independent System Operator, Inc
10 Krey Blvd
Rensselaer, NY 12114 (518) 356-6207
23.8Generator-Specific Mitigation Measure
The following mitigation measure only applies to the Saranac, Sterling and Batavia Generators.
If provisions 1 and 2 below are met, when calculating a daily Bid Production Cost
guarantee for a New York Control Area Generator that is located outside the New York City
Constrained Area, the ISO shall substitute a reference level (determined in accordance with
Attachment H to the Services Tariff) for each Bid or component of a Bid for which the
applicable threshold specified in provisions 3(a) through 3(e) below is exceeded:
1. the Generator was committed to protect or maintain New York Control Area or local
system reliability as a Day-Ahead Reliability Unit (“DARU”) or via a Supplemental Resource Evaluation (“SRE”), or was committed as a DARU or via SRE and is also dispatched Out-of-Merit to protect or maintain New York Control Area or local
system reliability; and
2. the Supplier that owns or offers the Generator is the only Supplier that can, or is the
Supplier that has been designated to, solve the reliability need for which the Generator was committed or dispatched; and
3. the Bids or Bid components submitted for the Generator that were accepted to protect
or maintain New York Control Area or local system reliability:
a.exceeded the Generator’s Minimum Generation Bid reference level by the
greater of 10% or $10/MWh, or
b.exceeded the Generator’s Incremental Energy Bid reference level by the
greater of 10% or $10/MWh, or
c.exceeded the Generator’s Start-Up Bid reference level by 10%, or
d.exceeded the Generator’s minimum run time reference level by more than one
hour, or
e.exceeded the Generator’s minimum generation MW reference level by more
than 10%.
23.8.1Overlap with Other Mitigation Measures.
A Generator that is subject to this mitigation measure remains subject to the other
provisions of these Mitigation Measures. This mitigation measure shall not be applied to
mitigate a Bid or Bid component that has already been mitigated in accordance with a different Mitigation Measure.
23.8.2Notice of Intent to Apply This Mitigation Measure to Bids Submitted for
Other Generators.
The ISO shall send an electronic copy of its filing proposing to apply this mitigation
measure to Bids submitted for a Generator other than Saranac, Sterling or Batavia to the Market
Party that is identified as being financially responsible for that Generator in the ISO’s settlement
systems.
23.8.3 Consultation Regarding Proposed Mitigation.
The ISO shall electronically inform the Market Party that is identified as being
financially responsible for a Generator in the ISO’s settlement systems each time it determines
that a Bid, or Bids, or Bid components submitted for the Generator may be subject to mitigation
under this Rate Schedule. The ISO’s notification shall be issued within 10 business days of the
relevant market day, and shall identify the particular day(s) and Bid(s) or Bid component(s) that
the ISO is proposing to mitigate. Following the ISO’s identification of Bids or Bid components
that are potentially subject to mitigation, the ISO and the Market Party shall follow the
consultation process and timeline set forth in Section 23.3.3.3.1 of these Mitigation Measures.
The permissible bases for challenging, or requesting a modification to mitigation applied in accordance with this Rate Schedule shall be that (a) the costs associated with operating the Generator exceeded the reference level that the ISO employed when determining the mitigation, or (b) the ISO made a mathematical error when determining that mitigation was appropriate or in calculating the settlement impact of a mitigation.
