10 Krey Boulevard Rensselaer, NY 12144
October 31, 2013
Honorable Kimberly D. Bose, Secretary Federal Energy Regulatory Commission 888 First Street, NE
Washington, DC 20426
Re: New York Independent System Operator, Inc., Docket No. ER13-909-001;
Informational Report
Dear Secretary Bose:
The New York Independent System Operator, Inc. (“NYISO”) hereby submits the
Informational Report requested in the Commission’s Order dated July 8, 2013 in this docket.1 In its July Order, the Commission approved enhancements to the NYISO’s scarcity pricing
mechanism whereby the NYISO reprices Energy and / or certain Ancillary Services to recognize that Load reductions were necessary to maintain a reliable system.
In its Order, the Commission requested that the NYISO provide an Informational Report
describing how well its revised scarcity pricing mechanism achieved its objectives during the
summer of 2013 including a discussion of how well it provided locational price signals
indicating the existence of scarcity conditions and whether there were any undesirable effects on
market outcomes during the 2013 summer. The Commission also requested the NYISO to
describe the steps that would need to be taken, and the resources required, to implement a real-
time scarcity pricing optimization engine, including a real-time dispatch that i) minimizes the
joint social costs of providing energy and Operating Reserves, ii) allows prices for energy and
Operating Reserves to clear the market, and iii) establishes operating locational reserve
requirements that are sufficiently granular to recognize important transmission constraints.
The NYISO is pleased to provide this Informational Report to answer these questions.
1 New York Independent System Operator, Inc., 144 FERC ¶ 61,013 (2013) (“July Order”)
Honorable Kimberly D. Bose October 31, 2013
Page 2
I.Documents Submitted
1.This cover letter;
2.The Informational Report (Attachment I); and
3.Appendices to the Information Report (“Attachment II”).
II.Communications and Correspondence
All communications and service in this proceeding should be directed to:
Robert E. Fernandez, General Counsel
Ray Stalter, Director of Regulatory Affairs
*Mollie Lampi, Assistant General Counsel
10 Krey Boulevard
Rensselaer, NY 12144
Tel: (518) 356-7530
Fax: (518) 356-7678
rfernandez@nyiso.com
mlampi@nyiso.com
rstalter@nyiso.com
*Persons designated for receipt of service.
III. Conclusion
Wherefore, the New York Independent System Operator, Inc. respectfully requests
that the Commission accept the Information Report, and Appendix provided herein as
complying with its request included in the Commission’s July Order for further
information on how well the NYISO’s scarcity pricing mechanism achieved its objectives
Honorable Kimberly D. Bose October 31, 2013
Page 3
this summer and on the resources necessary to pursue certain enhancements as discussed in the July Order.
Respectfully submitted,
/s/Mollie Lampi
Mollie Lampi
Assistant General Counsel
New York Independent System Operator, Inc.
10 Krey Blvd.
Rensselaer, New York 12144 (518) 356 7530
mlampi@nyiso.com
cc:Michael Bardee
Gregory Berson
Anna Cochrane
Jignasa Gadani
Morris Margolis
Michael McLaughlin
David Morenoff
Daniel Nowak
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 31st day of October, 2013.
/s/ Joy A. Zimberlin
Joy A. Zimberlin
New York Independent System Operator, Inc.
10 Krey Blvd.
Rensselaer, NY 12144 (518) 356-6207
