UNITED STATES OF AMERICA
BEFORE THE

FEDERAL ENERGY REGULATORY COMMISSION

)

New York Independent System Operator, Inc.)Docket Nos. ER13-2016-000;

)ER12-1653-___

)

NEW YORK INDEPENDENT SYSTEM OPERATOR, INC. REQUEST
FOR EXTENSTION OF LIMITED TARIFF WAIVER, SHORTENED
COMMENT PERIOD, AND EXPEDITED COMMISSION ACTION

Pursuant to Rules 207(a)(5) and 212 of the Federal Energy Regulatory

Commission (“Commission” or “FERC”) Rules of Practice and Procedure, 18 C.F.R. §§
385.207(a)(5) and 385.212, the New York Independent System Operator, Inc. (“NYISO”)
respectfully requests a twenty-two day extension (from October 23, 2013 to November
14, 2013) of the temporary, limited waiver that the Commission granted in New York
Indep. Sys. Operator, Inc., 144 FERC ¶ 61,147 (2013). The temporary, limited waiver of
Sections 23.3.3.3.1.1 and 23.3.3.3.1.2 of the NYISO’s Market Power Mitigation

Measures (“Mitigation Measures”)1 permitted the NYISO to employ an extended
timeline to incorporate Regulation Capacity and Regulation Movement bids into its
application of Real-Time Guarantee Payment (“RTGP”) mitigation, and authorized

temporary, alternative screening and consultation measures: (a) to permit NYISO to

manually screen real-time Regulation Capacity and Regulation Movement bids for the
exercise of market power until the necessary software upgrades are completed; and (b) to

1 Section 23 of (Attachment H to) the NYISO’s Market Services Tariff sets forth the NYISO’s Market Power Mitigation Measures.

provide market parties adequate time and opportunity to consult and explain the basis for
conduct-failing real-time Regulation Capacity and/or Regulation Movement bids.2
Consistent with the NYISO’s July 23, 2013 waiver request,3 the NYISO has developed and quality assurance tested software that will permit the NYISO to:

(1) perform RTGP conduct and impact testing of Regulation Movement and Regulation
Capacity Bids, (2) reflect the application of RTGP mitigation to Regulation Movement
and Regulation Capacity Bids in posted settlement results, and (3) provide notice to
affected Market Parties that RTGP mitigation has been applied, within the deadlines
specified in Sections 23.3.3.3.1.1 and 23.3.3.3.1.2 of the NYISO’s Market Power

Mitigation Measures. The RTGP mitigation software is complete and is ready to be
deployed. However, the RTGP mitigation software was developed as one component of
a larger, bundled package of software improvements that the NYISO intended to deploy
in October.

The NYISO’s quality assurance testing revealed a configuration issue with
another application included in the bundled software package that was scheduled for
deployment to production in October. As a result, the NYISO must delay the complete
software deployment that was scheduled to occur on or before October 23, 2013. The
software package will now be deployed no later than November 14, 2013; although the
NYISO still hopes to deploy the package of improvements by the end of October 2013.
Since the RTGP mitigation software was developed in conjunction with the rest of the
software bundle, the various pieces of software share settlements application components

2 New York Indep. Sys. Operator, Inc., 144 FERC ¶ 61,147 at P 4 (2013).

3 New York Independent System Operator, Inc., Request for Limited Tariff Waiver, Shortened Comment Period, and Expedited Commission Action, Docket No. ER13-2016-000 (July 23, 2013).

and database components that prevent the individual deployment of distinct software
functions. The NYISO cannot strip the RTGP mitigation software from the bundled
deployment and deploy it separately without writing some new code and going through
multiple additional rounds of quality assurance testing that would impact the expected
deployment date of both the RTGP mitigation software improvements and the other
software improvements that are schedule for deployment by November 14, 2013.

For the foregoing reasons, the NYISO respectfully requests that the Commission
extend the authorized tariff waiver period to November 14, 2013. During the requested
extension period, the NYISO will continue utilizing the manual screening process
described in Section III of its July 23, 2013 waiver request to address conduct-failing
Regulation Conduct and Regulation Movement Bids submitted by entities that were
scheduled to provide Regulation Service and that received a BPCG for the relevant Real-
Time Market day.4

The NYISO will implement the RTGP mitigation software improvements as soon
as they are deployed to production. The NYISO renews its commitment to provide
notice to the Commission and to its Market Participants at least one week prior to
implementing the software improvements that are necessary to incorporate Regulation
Capacity and Regulation Movement Bids and reference levels into the NYISO’s RTGP
mitigation software.5

The NYISO respectfully requests that the Commission grant the Extension
Request by no later than October 21, 2013. To meet this expedited schedule, the NYISO

4 Id. at pp. 7-11.

5 See Id. at p. 4; New York Indep. Sys. Operator, Inc., 144 FERC ¶ 61,147 at P 6 (2013).

respectfully requests that the Commission immediately issue notice of this Extension
Request and provide, in accordance with its Rule 210(b),6 for a shortened comment
period of ten days. Expedited action is necessary because the NYISO cannot timely
comply with the notice requirements in its Mitigation Measures when applying RTGP
mitigation to accepted Regulation Capacity and Regulation Movement Bids until the new
software is deployed into production. The NYISO will be out-of-compliance with the
requirements of its Tariffs after October 23, 2013 if the Commission does not act to
extend the waiver period. Expedited Commission action on this Extension Request will
also provide the NYISO and its Regulation Suppliers certainty regarding how guarantee
payment consultation and mitigation of Regulation Capacity Bids and Regulation
Movement Bids will be conducted during the requested extension period.

For the reasons stated above, the NYISO requests that the Commission act
expeditiously to extend the previously granted waiver of the RTGP impact
testing/mitigation and notice requirements set forth in Sections 23.3.3.3.1.1 and

23.3.3.3.1.2 of its Mitigation Measures through November 14, 2013.
Respectfully submitted,

/s/ James H. Sweeney

Mollie Lampi, Assistant General Counsel Alex M. Schnell

James H. Sweeney, Attorney

New York Independent System Operator, Inc.

Dated: October 4, 2013

6 18 C.F.R. § 385.210(b).

CERTIFICATE OF SERVICE

I hereby certify that I this day served the foregoing document upon each person designated on the official service list compiled by the Secretary in this proceeding.
Dated at Rensselaer, New York this 4th day of October 2013.

/s/ Mohsana Akter

Mohsana Akter

New York Independent System Operator, Inc.

10 Krey Boulevard

Rensselaer, NY 12144 518-356-7560