Transcript New York Independent System Operator

New York
Independent
System Operator
Welcome
New York
Independent
System Operator
(Pre-NYISO) Regulated Market
• Physical contracts
• Regulated industry
• Cost Based System
• Two Party Deals
• Bundled Services
• Members sell Firm Transmission Capacity
• Losses
• Scheduled in MWH’s (megawatt hours)
• Fixed %
• Balanced (hourly or Monthly)
New York
Independent
System Operator
NYISO De-regulated Wholesale
Electric Market
• Financial
• Deregulated
• Price Based System
• Unbundled Services
• NYISO OATT (Open Access Transmission Tariff)
• Marginal Losses paid in $’s
• Balanced every 5 minutes
• Transmission Congestion Contracts (TCC’s)
New York
Independent
System Operator
New York
Independent
System Operator
New York
Independent
System Operator
New York Independent System Operator
• A not for profit corporation established to:
• Maintain safety and reliability of New
York State transmission system
• Schedule and coordinate power transactions
New York
Independent
System Operator
New York Independent System Operator
• Provide open access to New York State
transmission system
• Provide non-discriminatory treatment for all
market participants
• Provide meaningful involvement by market
participants in the oversights of New York State
transmission system
• Act as a clearinghouse for transactions by
market participants
New York
Independent
System Operator
Load Serving Entity
New York
Independent
System Operator
Load Serving Entity
(i.e. Freeport Electric)
• Responsible for providing energy, capacity and ancillary
services
• Retail customers liaison with NYISO
• Submits (schedules) forecasted retail loads for which it is
responsible to the NYISO two days ahead and five days
out
• Submits actual metered load data to the NYISO
New York
Independent
System Operator
Ancillary Services
New York
Independent
System Operator
Ancillary Services
• Ancillary Services – necessary to support the transmission
of energy from generator to loads, while maintaining
reliable operation of the power system
• Scheduling, System Contract and Dispatch
• Reactive Supply and Voltage Support
• Regulation and Frequency Response
• Energy Imbalance (mismatches between day ahead
schedules and real-time)
• Operating Reserve (back-up generation)
• Black Start (generators starting without outside electric
supply following a system blackout)
New York
Independent
System Operator
Locational Based Market Price
New York
Independent
System Operator
Locational Based Market Price
• The price of energy at each of the 11 zones of the
New York State Transmission System
• Equivalent to the cost to supply the next increment of
load in the zone
• Differences in LBMP reflect cost of transmission
associated with system congestion
• Price for NYISO transmission losses
• Energy imbalance charges
New York
Independent
System Operator
Day Ahead Market
New York
Independent
System Operator
Day Ahead Market
• Schedules the most economic units available
• Hour by hour load schedules and generator bids
• Accepted load schedules and generator bids
become forward contracts
• Prices locked in
• Sets congestion rents for Transmission
Congestion Contracts (TCC’s)
• Closes at 5:00AM the day before schedule
• Accepted bids posted at 11:00AM the day before
New York
Independent
System Operator
Hour Ahead Market
New York
Independent
System Operator
Hour Ahead Market
• Advisory – Generators only
• Projection of next hour prices
• Prices not locked in
• Transaction accepted are settled in Real Time
Market (RTM)
• Closes 90 minutes prior to the hour
• Looks ahead three hours
• Accepted bids posted 30 minutes prior to the hour
New York
Independent
System Operator
Real Time Market
New York
Independent
System Operator
Real Time Market
• Dispatches generation to serve the real time load
• Real-time computer program adjusts the output of
dispatched generators
• Final settlement for DAM and HAM schedules
where actual generation or sales differ from DAM)
• Operated to match actual load to available generation
New York
Independent
System Operator
Transmission Congestion Contract
New York
Independent
System Operator
Transmission Congestion Contract
• A financial hedge of transmission congestion, (I.e.
protection from congestion charges)
• Financial equivalent of firm transmission rights
• Allows holder to collect congestion rent from the
NYISO associated with transmitting power from
point of injection to point of withdrawal
• Associated with the physical capability of
transmission system
New York
Independent
System Operator
Installed Capacity
New York
Independent
System Operator
Installed Capacity
• Available resources which ensure that the probability
that load exceeds available generation occurs no
more than one day in 10 years
• ALL LSE’s (load serving entities) in New York must
maintain ICAP (locational ICAP)
• Each LSE is assigned an ICAP requirement
predicated on its peak demand coincident with the
transmission District peak demand
• If a LSE does not fully meet its ICAP requirement, it
must purchase the deficiency through NYISO
auctions
New York
Independent
System Operator
Thank You