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EPSA REGULATORY AFFAIR CONFERENCE 2006. Washington, DC October 25, 2006. Garry Brown Vice President, External Affairs New York ISO. NYISO Overview. NYISO was formed December 1, 1999. Utility generation divestiture rate makes it one of the most divested markets in nation.
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EPSA REGULATORY AFFAIR CONFERENCE2006 Washington, DC October 25, 2006 Garry Brown Vice President, External Affairs New York ISO
NYISO Overview • NYISO was formed December 1, 1999. • Utility generation divestiture rate makes it one of the most divested markets in nation. • NYISO market volume - $11 billion in 2005 and over $40 billion since inception. • Unique challenge: New York City is one of the world’s biggest and most complex load pockets. It is also a world finance and communications capital.
Located at a Crossroads Hydro Quebec 34,850 MW* Ontario IESO 27,005 MW* ISO - New England 28,021 MW* New York ISO 33,939 MW* PJM / PJM West 131,330 MW* PJM 144,796 MW* * = Peak load
NYISO’s Markets • Energy: Real-Time and Day-Ahead (based on LBMP) • Ancillary Services: RT and DA • Co-optimized with energy in both RT and DA • Spinning and non-spinning reserves with scarcity pricing • Regulation • Installed Capacity (ICAP) – locational markets • Transmission Congestion Contracts (TCCs) • Virtual trading for both supply and demand • Demand Side Resources may participate in the energy and capacity markets (ancillary services under development) NYISO also offers several Cost-Based Products: • Voltage Support • Black Start
E F D 210 MW 7 MW B 1,715 MW A C 33 MW 43 MW G H I J K 801 MW 2,143 MW Megawatts of New Generation*by NYISO Zone 1999 thru 2005 * Built or Under Construction
Transmission New Transmission Lines (Proposed or Operational) CSC (330 MW) Con Ed Upgrades Neptune (660 MW)
EFORd . .
Managing Higher PeaksIncreased Regional Communication and Generation Availability
Load/Demand Response ProgramsSpecial Case Resources & Emergency Demand Response Programs Estimated performance by Zone: A – 328 MW (300 MW SCR, 28 MW EDRP) B – 60 MW ( 59 MW SCR, 1 MW EDRP) C – 94 MW ( 80 MW SCR, 14 MW EDRP) J – 429 MW (334 MW SCR, 95 MW EDRP) K – 261 MW (174 MW SCR, 87 MW EDRP) 1172 MW Total Load Reduction August 2, 2006 - SCR and EDRP resources were activated in Zones J&K 1 pm to 7 pm, and Zones A, B &C 2 pm to 7 pm.
8/2 NYCA LoadEffect of Demand Response Added Back Total 1172 MW
Retail ¢/kWh and Percent Coal Generation 5.8¢ 4% 5.9¢ 94% 6.7¢ 57% 6.9¢ 62% 10.9¢ 2% 8.0¢ 66% 6.4¢ 45% 6.4¢ 41% 5.0¢ 1% 8.3¢ 61% 5.2¢ 95% 13.5¢ 16% 7.6¢ 76% 5.9¢ 61% 8.6¢ 55% 7.0¢ 47% 6.5¢ 95% 7.7¢ 86% 9.2¢ 24% 6.0¢ 93% 7.8¢ 72% 6.9¢ 70% 6.3¢ 85% 5.0¢ 98% MA 15.4¢ 24% CT 14.3¢ 12% NH 14.2¢ 17% RI 14.1¢ 0% VT 11.5¢ 0% NJ 11.3¢ 17% MD 8.9¢ 60% DE 8.8¢ 71% 5.3¢ 92% 6.8¢ 48% 12.6¢ 1% 7.5¢ 60% 7.3¢ 49% 7.0¢ 64% 4.5¢ 46% 8.4¢ 41% 7.4¢ 87% 6.9¢ 39% 8.5¢ 39% 7.0¢ 55% 7.7¢ 64% 8.2¢ 25% 10.2¢ 36% 10.4¢ 29% ¢ = average retail price ¢/kWh 1/06 – 7/06 % = percent coal generation 1/06 – 7/06 Source: Energy Information Administration
Competitive Markets • Efficiency • Innovation • Risk Shifting