NYISO Tariffs --> Open Access Transmission Tariff (OATT) --> 6 OATT Rate Schedules --> 6.5 OATT Schedule 5 - Charges For Operating Reserve Service
The ISO must offer this service when Transmission Service is used to serve Load within the NYCA. Transmission Customers and LSEs must either purchase this service from the ISO. The charges for Operating Reserve Service are set forth below.
The NYSRC shall be responsible for evaluating the adequacy of the criteria for determining the required level of Operating Reserves and shall modify such criteria from time to time as required. The ISO shall establish additional categories of Operating Reserves if necessary to ensure reliability.
The ISO will ensure that Suppliers that are compensated for using Capacity to provide one Operating Reserve product are not simultaneously compensated for providing another Operating Reserve product, or Regulation Service, using the same Capacity (consistent with the additive nature of the market clearing price calculation formulae in Sections 15.4.5.1 and 15.4.6.1 of Rate Schedule 4 of the ISO Services Tariff).
Transmission Customers and Customers engaging in Export Transactions, except for Export Transactions resulting from CTS Interface Bids at a CTS Enabled Interface with ISO New England, and LSEs shall pay an hourly charge equal to the product of (A) the cost to the ISO of providing all Operating Reserves for a given hour; and (B) the ratio of (i) the LSE’s hourly Load or the Transmission Customer’s hourly scheduled Export Transactions, except for Export Transactions resulting from CTS Interface Bids at a CTS Enabled Interface with ISO New England, to (ii) the sum of all Load in the NYCA and all scheduled Export Transactions, except for Export Transactions resulting from CTS Interface Bids at a CTS Enabled Interface with ISO New England, for a given hour. The cost to the ISO of providing Operating Reserves in each hour will equal the total amount that the ISO pays to procure Operating Reserves on behalf of the market in the Day-Ahead Market and the Real-Time Market, less payments collected from entities that are scheduled to provide less Operating Reserves in the Real-Time Market than in the Day-Ahead Market during that hour, under Rate Schedule 4 of the ISO Services Tariff. The ISO shall aggregate the hourly charges to produce a total charge for a given Dispatch Day.
LSEs taking service under Section 5 of the OATT to supply Station Power as third-party providers shall pay to the ISO a daily charge for this service equal to the product of (A) the cost to the ISO of providing all Operating Reserves for the day and (B) the ratio of (i) the LSE’s Station Power supplied under Section 5 of the OATT for the day to (ii) the sum of all Load in the NYCA and all scheduled Exports, except for Export Transactions resulting from CTS Interface Bids at a CTS Enabled Interface with ISO New England, for the day. The ISO shall credit the daily charges paid for Operating Reserves by LSEs taking service under Section 5 of the OATT to supply Station Power as third-party providers on a Load ratio share basis to the Load in the NYCA for that day and all scheduled Exports for the day except for Export Transactions resulting from CTS Interface Bids at a CTS Enabled Interface with ISO New England.
Transmission Customers, including LSEs, may provide for Self‑Supply of Operating Reserve by placing Resources supplying any one of the Operating Reserves under ISO Operational Control. The Resources must meet ISO rules for acceptability, pursuant to Rate Schedule 4 of the Services Tariff. The specified Resources will receive the market value of the Operating Reserves services provided by the specified Resource as determined in the ISO Services Tariff. In addition, Transmission Customers, including LSEs, may enter into Day-Ahead bilateral financial transactions, e.g., contracts-for-differences, in order to hedge against price volatility in the Operating Reserves markets.
Effective Date: 12/31/9998 - Docket #: ER14-552-000 - Page 1