Transcript 1. What ISOs are Doing

NYISO’s Response
to FERC’s
RTO Order 2000
Presented by:
John P. Buechler
Director of Regulatory Affairs, NYISO
Massachusetts Electric Restructuring Roundtable
January 29, 2001
RTO Characteristics & Functions
Characteristics
1. Independence*
2. Scope and Regional Configuration*
3. Operational Authority
4. Short-Term Reliability
* Note: Bold Denotes a Major Issue
RTO Characteristics & Functions
Functions
1. Tariff Administration and Design *
2. Congestion Management
3. Parallel Path Flow
4. Ancillary Services
5. OASIS
6. Market Monitoring
7. Planning & Expansion *
8. Interregional Coordination*
Open Architecture
* Note: Bold Denotes a Major Issue
NYISO RTO WG
General Approach
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Filing MUST be acceptable to FERC
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Focus on Major Issues
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Governance
Planning
Scope & Interregional Coordination
Objective: To achieve consensus
RTO Working Group Process
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12 Meetings held since August
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Initial Meetings
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All stakeholder classes represented
Reviewed “minor issues”
General Consensus
Later Meetings
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Focus on Major Issues
Governance/Planning/Scope
Review of Draft Filing
RTO WG - Results
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Collaborative produced a joint RTO filing
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Management Committee Approved - 71%
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NYISO Board Approved
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Filed with FERC on January 16th
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“Joint Filing” of NYISO and jurisdictional
TO’s (supported by LIPA and NYPA)
NYISO RTO Filing
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“NYISO will satisfy all of Order 2000’s RTO
requirements”, based on:
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NYISO’s existing characteristics; bolstered by
Proposed tariff/agreement changes to clarify its
governance structure and reinforce Board
authority and provide for a comprehensive
transmission planning process
Intensification of NYISO’s interregional
coordination efforts
Governance Consensus

Highlights
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Maintain shared governance
Maintain 205 concurrence for tariff changes
Maintain Committee responsibilities per ISO
Agreement
“Exigent Circumstances” filing sunset provision
extended from 120 days to 180 days, unless:
 MC votes to approve the change
 FERC has approved under Section 206
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“Exigent Circumstances” actions do not sunset if
MC does not vote within 180 days of filing
MP’s can require a special meeting of MC to
address an exigent circumstances filing
Governance Consensus

Highlights (cont’d)
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Clarification of Staff responsibilities
Clarification that Staff authority does not extend to
changes in policy
Clarification that President can act under exigent
circumstances on matters other than tariff changes
 President shall use best efforts to notify the major
committee Chairs & Vice Chairs in advance
 Such actions on matters otherwise assigned to a
Committee are subject to ratification by that
Committee
Transmission Planning Consensus
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Highlights
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Transmission Planning Committee: a permanent
sub-committee reporting to both BIC & OC
 TPC has same membership & voting as BIC & OC
 Reports to both committees on policy matters and
development of the Consolidated Transmission Plan
 Reports to OC only on application of policies
 Bring all planning functions under the TPC
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TPC will develop cost allocation criteria for
reliability based transmission expansion
TPC will consider incentive mechanisms for
reliability based transmission expansion
Transmission Planning Consensus
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Highlights
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Consolidated Transmission Plan (CTP) will include
all transmission facilities needed to ensure
reliability
CTP will include all existing and planning facilities,
as appropriate and will evaluate alternatives to
assure reliability
CTP process to be coordinated with neighboring
ISO’s and state regulatory agencies
TPC can go directly to MC with the CTP, if
necessary to break a deadlock
Board has final authority to approve CTP; or can
remand to the MC for modification
Transmission Planning Consensus
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Highlights
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TO’s commit to construct Reliability Projects
included in the CTP, provided:
 TO is assured full recovery of all reasonably incurred
costs by the appropriate regulatory authority
 All federal, state and local approvals are obtained
 All technical requirements are met for the expansion
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TO’s retain right to expand their transmission
facilities subject to regulatory approval/order
TO’s will allow merchant transmission, subject to
negotiation re: ownership, franchise rights, etc.
Scope & Interregional
Coordination Consensus
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Highlights
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NYISO Scope is adequate for the present
Northeast is moving in the direction of establishing
a “virtual” RTO
Expedited initiatives announced between NYISO
& ISO-NE
MOU process is moving to resolve seams issues
Investigation of feasibility of Regional DAM is
underway
NYISO participation in NPCC/NERC provides a
broad regional perspective
Joint Board Resolution
Between NYISO and ISO-NE

Executed January 16th
 Boards are committed to efficient regional
markets
 ISO’s will work together to enhance
interregional coordination
 Objective is to reduce barriers to
transactions between the two markets
 Complements other regional efforts
 Participation is open to other ISO’s
NYISO/ISO-NE Joint
Agreement

Highlights
 Establish Joint Task Force to expedite seams issues
 Initial objectives include:
– Uniform rules for Day-Ahead Markets
– Compatible schedules for inter-ISO schedules
– Reserve sharing protocols
– Uniform standards for generator interconnections
 Establish Joint Monitoring Committee
– NYISO & ISO-NE Market Advisors
– MMU’s to share information across ISOs
– Review & assess markets, rules and procedures