5.4  Operation Under Adverse Conditions

The ISO shall operate the NYS Power System during Adverse Conditions, including, but not limited to, thunder storms, hurricanes, tornadoes, solar magnetic flares and threat of terrorist activities, in accordance with the Reliability Rules, inclusive of Local Reliability Rules and related PSC orders.  Consistent with such Reliability Rules, the ISO shall maintain reliability of the NYS Power System by directing the adjustment of the Generator output levels and controllable transmission devices in certain areas of the system to reduce power flows across transmission lines vulnerable to outages due to these Adverse Conditions, thereby reducing the likelihood of major power system disturbances.

The ISO shall have the sole authority to declare that Adverse Conditions are imminent or present and invoke the appropriate operating procedure(s) affecting the NYS Power System in response to those conditions.  Activation of a procedure in compliance with a Local Reliability Rule shall involve a two (2) step process.  The Transmission Owner directly involved with such  Local Reliability Rule, such as Storm Watch, shall advise the ISO that Adverse Conditions are imminent or present and recommend to the ISO the activation of procedures in support of that Local Reliability Rule.  Consistent with the Local Reliability Rule, the ISO shall declare the activation of the appropriate procedures.

The Transmission Owner and the ISO shall coordinate the implementation of the applicable procedures to the extent that Transmission Facilities under ISO Operational Control are impacted.  Records pertaining to the activation of such procedures and the response in accordance with those procedures shall be maintained and made available upon request.

The Real‑Time LBMPs shall be based on adjusted Generator levels set in response to activation of these procedures.  Revenue shortfalls may occur if the redispatch of the system Curtails Energy scheduled Day‑Ahead and more expensive Energy is dispatched subsequent to the Day‑Ahead Settlement.  These revenue shortfalls shall be recovered by the ISO through the Rate Schedule 1 charge under the ISO OATT.