NYISO Tariffs --> Market Administration and Control Area Services Tariff (MST) --> 4 MST Market Services: Rights and Obligations --> 4.1 MST Market Services - General Rules
Market Services include all services and functions performed by the ISO under this Tariff related to the sale and purchase of Energy, Capacity or Demand Reductions, and the payment to Suppliers who provide Ancillary Services in the ISO Administered Markets.
The ISO shall provide all Market Services in accordance with the terms of the ISO Services Tariff and the ISO Related Agreements. The ISO shall be the sole point of Application for all Market Services provided in the NYCA. Each Market Participant that sells or purchases Energy, including Demand Side Resources, Special Case Resources and Emergency Demand Response Program participants, sells or purchases Capacity, or provides Ancillary Services in the ISO Administered Markets utilizes Market Services and must take service as a Customer under this Tariff and enter into a Service Agreement under the Tariff, as set forth in Attachment A; each entity that withdraws Energy to supply Load within the NYCA or provides Installed Capacity to an LSE serving Load within the NYCA utilizes the Control Area Services provided by the ISO and benefits from the reliability achieved as a result of ISO Control Area Services, must take service as a Customer under this Tariff and enter into a Service Agreement under this Tariff, as set forth in Attachment A; and each entity that has its virtual bids accepted and thereby engages in Virtual Transactions and each entity that purchases Transmission Congestion Contracts, excluding Transmission Congestion Contracts that are created prior to January 1, 2010, utilizes Market Services and must take service as a Customer under this Tariff and enter into a Services Agreement under this Tariff, as set forth in Attachment A. Each Customer that utilizes Market Services also utilizes Transmission Service and shall obtain Transmission Service under the ISO OATT.
4.1.3.1The ISO shall operate and maintain an OASIS, including a Bid/Post System that will facilitate the posting of Bids to supply Energy, Ancillary Services and Demand Reductions by Suppliers for use by the ISO and the posting of Locational Based Marginal Prices (“LBMP”) and schedules for accepted Bids for Energy, Ancillary Services and Demand Reductions. The Bid/Post System will be used to post schedules for Bilateral Transactions. The ISO will provide historical data regarding Energy and Capacity market clearing prices in addition to Congestion Costs on a publicly accessible portion of its OASIS.
4.1.3.2Zonal Uplift Report. The ISO shall post on a publicly accessible portion of its website, in machine-readable format, a report on total daily uplift dollars paid to (a) Generators and Demand Side Resources located in Load Zones H, I and J collectively, (b) Generators and Demand Side Resources located in each of the other NYCA Load Zones, and (c) Suppliers scheduling Imports at a Proxy Generator Bus, no more than 20 calendar days after the conclusion of each month. The report shall be updated at the time the Resource-Specific Uplift Report is posted, and again approximately 120 days after an initial invoice was issued for a month, to incorporate updated information. The report shall provide the uplift paid for each month, by day and by billing category.
Costs that the ISO will report as uplift include: (1) Day-Ahead and real-time Bid Production Cost guarantee payments to Generators and to Demand Side Resource aggregations; (2) Day-Ahead Bid Production Cost guarantee payments to Suppliers that schedule Imports; (3) Day-Ahead Margin Assurance Payments; (4) cost recovery for units responding to Local Reliability Rules addressing loss of Generator gas supply; (5) Import Curtailment Guarantee Payments to Suppliers that schedule Imports in real-time; and (6) Lost Opportunity Cost payments to Suppliers of Voltage Support Service.
4.1.3.3Resource-Specific Uplift Report. The ISO shall post on a publicly accessible portion of its website, in machine-readable format, a report on total uplift paid to Generators, Demand Side Ancillary Service Program Resources, Day-Ahead Demand Response Program resources or aggregations, and to Special Case Resource aggregations, on a monthly basis. The report shall provide the total uplift payment across all uplift categories paid to each Generator or aggregation of Demand Side Resources. The report shall be posted no more than 90 calendar days after the conclusion of each month and shall be updated approximately 120 days after an initial invoice was issued for the month, to incorporate updated information.
4.1.3.4Operator-Initiated Commitment Report. The ISO shall post on a publicly accessible portion of its website, in machine-readable format, commitments made after the Day-Ahead Market for a reason other than minimizing the total production cost of serving load.
For each reported commitment, the ISO shall provide the following information:
(a)commitment size: provide both the resource’s UOLN and the quantity of MW committed;
(b)location: the Load Zone in which the resource is located;
(c)commitment reason: (i) system-wide capacity need, or (ii) constraint management, or (iii) voltage support; and
(d)commitment start time.
Operator-initiated commitments are ordinarily posted in real-time as they occur. All operator-initiated commitments for a calendar month will be available no more than 30 days after the conclusion of that month. Operator-initiated commitment postings may later be updated to improve accuracy.
Pursuant to ISO Procedures, each Transaction offered in the Energy, Installed Capacity, Ancillary Services or Transmission Congestion Contract market shall be subject to a minimum size of one (1) megawatt (“MW”); provided however, the minimum size of each Transaction offered in the Energy, Installed Capacity or Ancillary Services market on behalf of Energy Storage Resources shall be one tenth (0.1) of one MW. Regulation Service may be offered in tenths of a MW. Pursuant to ISO Procedures, Special Case Resources may offer a minimum of 100 kW of Unforced Capacity in the Installed Capacity Market. Each Transaction above one (1) megawatt may be scheduled in tenths of a megawatt provided, however, Bilateral Transactions and External Transactions in the LBMP Market must be bid and scheduled in increments of one (1) megawatt.
Customers and Transmission Customers shall utilize Internet service providers to access the ISO’s OASIS and bid/post system. Customers shall arrange for and maintain all communications facilities for the purpose of communication of commercial data to the ISO. Each Customer shall be the customer of record for the telecommunications facilities and services its uses and shall assume all duties and responsibilities associated with the procurement, installation and maintenance of the subject equipment and software.
All purchasers in the Day‑Ahead or Real‑Time Markets who withdraw Energy within the NYCA to serve Load or at an NYCA Interconnection with another Control Area must obtain Transmission Service under the ISO OATT. All Customers requesting service under the ISO Services Tariff to engage in Virtual Transactions must obtain Transmission Service under the ISO OATT.
All LSEs serving Load in the NYCA must comply with the Installed Capacity requirements set forth in Article 5 of this ISO Services Tariff.
All Customers taking service under the ISO Services Tariff must pay the Market Administration and Control Area Services Charge, as specified in Rate Schedule 1 of this ISO Services Tariff.
A Supplier with a Generator or Demand Side Resource with a real time physical operating problem that makes it impossible for it to operate in the bidding mode in which it was scheduled shall notify the NYISO.
All Customers shall comply with all applicable federal, state and local laws, regulations and orders, including orders from the ISO.
4.1.7.1Violations of FERC’s orders, rules and regulations also violate this Section 4.1.7 of the ISO Services Tariff. In particular, if FERC or a court of competent jurisdiction determines there has been a violation of FERC’s regulations related to electric energy market manipulation (see 18 C.F.R. Section 1c.2, or any successor provision thereto), such violation is also a violation of this ISO Services Tariff if such violation affects or is related to the ISO Administered Markets.
4.1.7.2If the ISO becomes aware that a Customer may be engaging in, or might have engaged in, electric energy market manipulation, it shall promptly inform its Market Monitoring Unit.
4.1.7.3This Section 4.1.7 of the ISO Services Tariff does not independently empower the ISO or its Market Monitoring Unit to impose penalties for, or to provide a remedy for, violations of FERC’s prohibition against electric energy market manipulation, or for other violations of the ISO's Tariffs.
Suppliers with generating units committed by the ISO for service to ensure NYCA reliability or local system reliability, except for Behind-the-Meter Net Generation Resources and Energy Storage Resources, will recover startup and minimum generation costs that were not bid, that were not known before the close of the Real-Time Scheduling Window, and that were not recovered in the Dispatch Day, provided however, eligibility to recover such additional costs shall not be available for megawatts scheduled Day-Ahead. Payment for such costs shall be determined, as if bid, pursuant to the provisions of Attachment C of this Tariff. Payments for securing NYCA reliability and local system reliability shall be recovered by the ISO in accordance with Rate Schedule 1 of the ISO OATT.
External Installed Capacity Suppliers that respond to an SRE request are eligible to recover the ISO-verified costs they incur to respond to the SRE request to the extent such costs exceed the ISO-verified market revenues the External Installed Capacity Supplier receives. It is the obligation of the External Installed Capacity Supplier to demonstrate its costs and revenues to the ISO’s satisfaction. In verifying the costs of External Installed Capacity Suppliers that respond to an SRE, the ISO will consider the incremental net costs the Market Party incurred to respond to the SRE. Recoverable costs could include, but are not limited to, incremental costs of generating to supply Energy using the requested Installed Capacity, and the incremental costs incurred by the Market Party to transmit Energy from the External Installed Capacity Supplier’s resource to the NYCA, including the opportunity cost associated with lost expected revenue. However, losses resulting from the difference in External Transaction settlement prices between an External Control Area and the NYCA will only be recoverable if and to the extent the following conditions are satisfied: (a) the losses are demonstrated to be reasonably related to responding to the SRE request; and (b)(i) a counterflow Export from the NYCA offered by the Market Party at the External Interface where the Capacity delivery obligation applies is not scheduled due to NYCA reliability concerns or is curtailed to address NYCA reliability concerns, or (ii) no opportunity exists to schedule a counterflow Export from the NYCA at the External Interface where the Capacity delivery obligation applies. Payments for securing NYCA reliability and local system reliability shall be recovered by the ISO as DisputeResolutionCosts in accordance with Section 6.1.13 of Rate Schedule 1 of the ISO OATT.
Re-dispatching costs incurred as a result of reductions in Transfer Capability caused by Storm Watch (“Storm Watch Costs”) shall be aggregated and recovered on a monthly basis by the ISO exclusively from Transmission Customers in Load Zone J. The ISO shall calculate Storm Watch Costs by multiplying the real-time Shadow Price of any binding constraint associated with a Storm Watch, by the higher of (a) zero; or (b) the scheduled Day-Ahead flow across the constraint minus the actual real-time flow across the constraint.
Generating units designated pursuant to the New York State Reliability Council’s Local Reliability Rule addressing the Loss of Generator Gas Supply for Generators located in New York City or the Local Reliability Rule addressing the Loss of Generator Gas Supply for Generators located on Long Island, as being required either to burn an alternate fuel at designated minimum levels, or to activate their auto-swap capability, based on forecast Load levels in Load Zones J and K (for purposes of this Section 4.1.9, “Eligible Units”), shall be eligible to recover costs associated with burning the required alternate fuel when one of the specified Local Reliability Rules is invoked. For purposes of this Section 4.1.9, the periods of time in which the Eligible Unit burns the alternate fuel only because one of the Local Reliability Rulesaddressing the loss of gas supply for Generators located in New York City or on Long Island has been invoked, including that period of time required for an Eligible Unit to move into and out of compliance with a Local Reliability Rule addressing the Loss of Generator Gas Supply, shall be referred to as the “Eligibility Period.”
4.1.9.1.1 Obligation to Test Automatic Fuel Swap Capability and Eligibility to Recover Costs of Performing Fuel Swap Tests
Combined cycle Generating units designated pursuant to the New York State Reliability Council’s Local Reliability Rules addressing the Loss of Generator Gas Supply for Generators located in New York City, which have the ability to automatically swap from natural gas to a liquid fuel source in the event of the sudden interruption of gas fuel supply or loss of gas pressure or the unavailability of gas supply to the Generator, shall:
(a) develop test procedures that are consistent with the requirements of the applicable Local Reliability Rule and ISO Procedures; and
(b) successfully test to demonstrate that the designated combined cycle units are able to automatically swap from natural gas to a liquid fuel source each Capability Period.
The requirement to perform a test each Capability Period can be met by performing a real-time automatic fuel swap, if that fuel swap was successful and occurred during the relevant Capability Period. The scheduling of a test to demonstrate that a designated combined cycle unit is able to automatically swap from natural gas to a liquid fuel source in real-time operations shall be coordinated with the ISO and with the Transmission Owner in whose subzone the Generator is located, consistent with ISO Procedures.
The period during which combined cycle Eligible Units are performing scheduled automatic fuel swap testing, including that period of time required for an Eligible Unit to move into and out of compliance with a Local Reliability Rule addressing the Loss of Generator Gas Supply, is an “Eligibility Period.”
For Eligibility Periods, Eligible Units burning an alternate fuel that would not have been burned but for Local Reliability Rules addressing the loss of gas supply for Generators located in New York City or on Long Island being invoked and Eligible Units burning an alternate fuel because they activated their auto-swap capability and experienced a swap to the alternate fuel that would not have occurred but for the operation of the auto-swap capability in accordance with the implementation of the Local Reliability Rules addressing the loss of gas supply for Generators located in New York City or on Long Island shall recover costs that vary with the amount of alternate fuel burned (“variable operating costs”) if: (i) such costs are not reflected in the reference level for that Eligible Unit for the hours included in the Eligibility Period, pursuant to ISO Procedures, and (ii) the hour is one for which the commodity cost of the alternate fuel including taxes and emission allowance costs is greater than the commodity cost for natural gas, including taxes and emission allowance costs, as determined by the ISO. These relative commodity cost determinations shall use the same indices used by the ISO to establish daily Reference Levels. Variable operating costs shall include the commodity cost, associated taxes and emission allowance costs, of the required alternate fuel burned during an Eligibility Period pursuant to Local Reliability Rules addressing the loss of gas supply for Generators located in New York City or on Long Island. The owner or bidder of an Eligible Unit shall notify the ISO when variable operating costs change due to a change in tax rates.
An Eligible Unit that seeks to recover costs incurred in connection with its compliance with Local Reliability Rules addressing the loss of gas supply for Generators located in New York City or on Long Island, in addition to the commodity cost, associated taxes and emission allowance cost recovery specified in Section 4.1.9.2, shall negotiate an Implementation Agreement with the ISO. The Eligible Unit and the ISO shall consult with and consider the input of the New York State Public Service Commission, and the Transmission Owner designated by the applicable Local Reliability Rule addressing the loss of gas supply for Generators located in New York City or on Long Island. Such Implementation Agreements shall specify, among other terms and conditions, the facilities (or portions of facilities) used to meet obligations under the Local Reliability Rule addressing the loss of gas supply for Generators located in New York City or on Long Island. The Implementation Agreement shall indicate the rate to be charged during the period of the Implementation Agreement to recover such additional costs.
The Implementation Agreement may also include costs in addition to commodity cost, associated taxes and emission allowance costs of the alternate fuel incurred in connection with compliance with Local Reliability Rules addressing the loss of gas supply for Generators located in New York City or on Long Island that vary with the amount of alternate fuel burned because a Local Reliability Rule addressing the loss of gas supply was invoked. These variable costs shall be paid pursuant to Section 4.1.9.2 as variable operating costs so as to not duplicate payments.
Each such Implementation Agreement shall have a duration of one or more Capability Periods and shall commence at the beginning of a Capability Period unless another date is approved by the Commission. If the Eligible Unit and the ISO reach agreement on the terms and conditions of the Implementation Agreement, the ISO shall file it with the Commission for its review and acceptance.
In the event that the Eligible Unit and the ISO have not come to an agreement six months prior to the beginning of the Capability Period that the Implementation Agreement is intended to govern, then either one of them may request the assistance of the Commission’s Dispute Resolution Service. If the Dispute Resolution Service agrees to provide its assistance the Eligible Unit and the ISO shall participate in whatever dispute resolution process the Dispute Resolution Service may recommend. The Commission’s Dispute Resolution Service may include other stakeholders to the extent confidentiality protections are in place. If, however, there is no agreement four months prior to the beginning of the relevant Capability Period then the Eligible Unit and the ISO may each file an unexecuted Implementation Agreement for the Commission’s review and acceptance.
In the event that any provisions of this Section 4.1.9 are modified prior to the termination date of any Commission-accepted Implementation Agreement, such Implementation Agreement will remain in full force and effect until it expires in accordance with its contractual terms and conditions.
Rules for establishing Eligibility Periods shall be specified in ISO Procedures.
Payments made by the ISO to the Eligible Unit to pay variable operating costs and to pay the rate established by the Implementation Agreement pursuant to this Section 4.1.9 shall be in addition to any LBMP, Ancillary Service or other revenues received as a result of the Eligible Unit’s Day-Ahead or Real-Time dispatch for that day. Payment by the ISO of variable operating costs pursuant to Section 4.1.9.2 shall be based on the Eligibility Period, quantity of alternate fuel burned, and relative costs of alternate fuel compared to natural gas. Payment by the ISO of the rate established in the Implementation Agreement for costs incurred other than variable operating costs shall be made as part of the ISO billing cycle regardless of which Local Reliability Rule addressing the loss of gas supply an alternate fuel is burned pursuant to, and regardless of the relative cost of the alternate fuel compared to natural gas reflected in reference levels.
The ISO shall make available for the Transmission Owner in whose subzone the Generator is located: (i) the identity of Generators determined by the ISO to be eligible to recover the costs associated with burning the required alternate fuel pursuant to the provisions of this Section 4.1.9; (ii) the start and stop hours for each claimed Eligibility Period and (iii) the amount of alternate fuel for which the Generator has sought to recover variable operating costs.
4.1.10Reserved for Future Use
4.1.11Dual Participation
Effective May 1, 2020, Generators and Demand Side Resources electrically located in the NYCA may simultaneously participate in the ISO-administered wholesale markets and in programs or markets operated to meet the needs of distribution systems located in the NYCA. Generators, and Demand Side Resources engaged in dual participation must meet all applicable rules and obligations set forth in the ISO Tariffs.
Generators, and Demand Side Resources operating to meet an obligation outside of the ISO-administered wholesale markets must Bid in a manner that ensures they will be dispatched by the ISO for the market intervals consistent with the manner in which the Resource operates to meet such obligation(s). The ISO and Transmission Owners shall coordinate scheduling and dispatch for all Generators, and Demand Side Resources engaged in Dual Participation in accordance with ISO Procedures. The ISO has the authority to determine schedules for these resources.
Effective Date: 8/26/2020 - Docket #: ER19-467-005 - Page 1