New York Public Service Commission, New York Power Authority, and

New York State Energy Research and Development Authority

New York Independent System Operator, Inc.

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)Docket No. EL15-64-000
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MOTION FOR ADDITIONAL EXTENSION OF TIME

AND REQUEST FOR EXPEDITED ACTION OF

THE NEW YORK INDEPENDENT SYSTEM OPERATOR, INC.

In accordance with Rules 212 and 2008 of the Commission’s Rules of Practice and

Procedure,1 the New York Independent System Operator, Inc. (“NYISO”) respectfully requests that the Commission grant an additional 30 day extension of the compliance filing deadline in this proceeding. The compliance filing is currently due on March 14, 2016, in accordance with the Commission’s February 18, 2016 Notice of Extension of Time. If the requested additional extension is granted the filing would be due on April 13, 2016.

The Commission’s October 9, 2015 order (“October Order”)2 directed the NYISO to

make a compliance filing to revise its buyer-side capacity market power mitigation rules (“BSM
Rules”) to exempt certain narrowly defined renewable and self-supply resources from Offer
Floor3 mitigation. The Commission made it clear that it expected the NYISO to work with

1 18 C.F.R. §§ 385.212 and 2008 (2015).

2 New York Pub. Serv. Comm’n et al. v. New York Indep. Sys. Operator, Inc., 153 FERC ¶ 61,022

(2015).

3 Capitalized terms not otherwise defined herein shall have the meaning set forth in the NYISO’s Market Administration and Control Area Services Tariff.

stakeholders to develop compliance filing language addressing both the renewable and selfsupply exemptions.4

The NYISO has made substantial progress on its compliance proposal, including in the
time since it submitted its previous request for an extension of time. The NYISO is mindful of
the Commission’s desire that compliance filings be submitted in a timely manner. At the same
time the NYISO recognizes the October Order’s clear expectation that it fully engage with
stakeholders on the issues addressed by this particular filing. The NYISO has concluded that
taking an additional thirty days for final stakeholder review and discussion would likely further
improve the current draft of the compliance proposal and reduce the number of disputed issues
without materially delaying the implementation of new renewable and self-supply exemptions.
As noted below, the NYISO is not aware of any opposition to this request for an additional
extension. There is thus “good cause” for granting the requested 30-day extension.
The NYISO respectfully requests that the Commission adopt the standard five day notice period for extension requests.5 It also requests that the Commission act expeditiously by issuing an order granting the extension coincident with the end of the notice period, i.e., at the
Commission’s close-of-business on March 14. Expedited action is necessary so that the NYISO
and stakeholders will know with certainty that an extension has been granted before questions
arise concerning compliance with the Notice of Extension of Time’s compliance deadline.

I. The Development of the NYISO’s BSM Compliance Proposal to Date

The October Order directed the NYISO to file “a compliance filing, within 90 days of the
date of this order, to revise its buyer-side market power mitigation rules to exempt a narrowly
defined set of renewable and self-supply resources that have limited or no incentive and ability to

4 See, e.g., October Order at PP 10, 50, 65.

5 18 C.F.R. § 385.213(d)(1)(i).

exercise buyer-side market power to artificially suppress ICAP market prices.”6 Specifically, the
NYISO was directed to revise the BSM rules to exempt renewable resources that “that are both
purely intermittent and that have relatively low capacity factors and high development costs
because these resources have limited or no incentive and ability to artificially suppress capacity
prices,”7 and self-supply resources “whose ICAP portfolios are consistent with reasonably
anticipated levels of their future ICAP obligations.”8 The Commission also stated that it
“expect[s] NYISO to work with its stakeholders in developing this compliance filing.”9
The NYISO commenced work on a compliance proposal promptly after the issuance of the October Order. When it became apparent that additional time was needed the NYISO timely sought and obtained a 45 day extension. Subsequently, the NYISO obtained a further 21 day extension.

In the time since the October Order the NYISO has worked diligently to craft renewable
and self-supply exemptions that would satisfy the Commission’s requirements and to incorporate
stakeholder input. The NYISO has held seven stakeholder meetings to discuss the NYISO’s
proposal, obtain stakeholder input as it has evolved, and to review draft tariff language, including
an Installed Capacity Working Group Meeting held on the date of this filing (i.e., on March 8,
2016).

The NYISO previously believed that it would be possible to make the compliance filing
promptly after the March 8 meeting. It has become apparent that there are issues and design

6 October Order P 10.

7 October Order P 51.

8 October Order P 62.

9 October Order at P 10.

concepts that could benefit from having additional time to be addressed before complete and final compliance tariff language is submitted.

II. Request for Extension of Compliance Filing Deadline

The NYISO understands the importance that the Commission places on timely

compliance with its orders. The requested additional extension is not excessive (30 days) and is
warranted given the potential impacts of the compliance filing. The renewable and self-supply
exemptions must be carefully crafted to avoid both under- and over-mitigation while
accommodating state policy initiatives to the extent practicable. Taking a little more time to
finalize the filing will allow stakeholders the opportunity to continue to provide input on and
review further revised draft tariff language provided by the NYISO, and give the NYISO an
opportunity to consider any necessary revisions in response to their input. As noted above,
taking additional time for stakeholder discussion appears to be consistent with the October
Order. Allowing an opportunity for additional pre-filing review is also likely to improve the
compliance proposal and to reduce the number of disputed issues before the Commission.
Finally, granting the additional extension would not significantly delay the implementation of
renewable and self-supply exemptions in the NYISO-administered capacity markets.
The NYISO has reached out directly to several other parties in this proceeding regarding the requested extension. It also discussed this filing with stakeholders participating in its
March 8 ICAP Working Group meeting. The NYISO believes that there is no opposition to this
requested extension.

Rule 2008 authorizes the Commission to extend any deadline, including one imposed by
a compliance directive, before it expires if a requesting party demonstrates that there is “good

cause” to do so. For the reasons set forth above, the NYISO respectfully submits that there is good cause to grant the additional 30 day extension of time that it has requested.

III.Request for Expedited Action

The NYISO’s need for additional time to finalize its compliance filing in this proceeding
became as it was making final preparations for the March 8 Installed Capacity Working Group
Meeting and preparing the filing letter. Today is the first day that the NYISO could practicably
have filed this extension request. But the current deadline for submitting the compliance filing is
the same date as the expiration of the standard five day notice period, i.e., March 14 given that
March 13 is a Sunday.

The NYISO recognizes that the Commission has held that the standard five day notice period for extension requests reasonably balances the need to give parties sufficient time to be heard and the need to act promptly on timing-related requests that are not complex or
controversial. The NYISO also understands that although requests for shortened notice periods are permissible, the Commission seeks to avoid granting them because of the noticing burdens that could be imposed on the Office of the Secretary.10

Accordingly, the NYISO is not asking that the Commission shorten the standard five day
notice period. The NYISO does respectfully request, however, that the Commission act
expeditiously by granting the requested extension concurrent with the end of the standard notice
period, i.e., at the close of Commission business on March 14. This relief is justified given the
circumstances, including the fact that the fifth day of the notice period falls on a weekend. If the
Commission does not issue the extension on March 14 there would be uncertainty for the NYISO

10 See Filing of Privileged Materials and Answers to Motions, Order No. 769, 141 FERC ¶ 61,049 at PP 85-86 (2012)

and its stakeholders concerning compliance with the filing deadline established by the February 18 Notice of Extension of Time.

Alternatively, the NYISO requests that the Commission act expeditiously and issue an
order granting the extension as soon as practicable after March 14 in order to clearly and
promptly establish that the NYISO is not out of compliance with the Notice Extension of Time.

IV.Conclusion

WHEREFORE, for the foregoing reasons, the NYISO respectfully requests that the

Commission grant an additional 30 day extension to the compliance filing deadline in the abovecaptioned proceeding so that the NYISO may submit its compliance tariff revisions no later than April 13, 2016. The NYISO also respectfully requests that the Commission act expeditiously to issue an order granting the requested extension on March 14, 2016 so that there will be certainty concerning the filing deadline.

Respectfully submitted,

/s/ Ted J. Murphy

Ted J. Murphy

Counsel for the New York Independent System Operator, Inc.

March 8, 2016

cc:Michael Bardee

Anna Cochrane
Kurt Longo

Max Minzner
Daniel Nowak
Larry Parkinson

J. Arnold Quinn
Douglas Roe

Kathleen Schnorf
Jamie Simler

Gary Will

CERTIFICATE OF SERVICE

I hereby certify that I have this day caused the foregoing document to be served 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 Commission’s Rules of Practice and
Procedure.

Dated at Washington, DC, this 8th day of March, 2016.

/s/ Catherine Karimi

Catherine Karimi

Sr. Professional Assistant

Hunton & Williams LLP

2200 Pennsylvania Ave., NW
Washington, DC 20037
Tel: (202) 955-1500
Fax: (202) 778-2201