NYISO Overview

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NYISO Visitors Span the Globe

More than 1100 international visitors from over 60 nations have come to the NYISO to learn about reliable grid operations and competitive electricity markets

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The Roles of the NYISO

   

Reliable operation of the bulk electricity grid

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Managing the flow of power nearly 11,000 circuit-miles of transmission lines from more than 300 generating units

Administration of open and competitive wholesale electricity markets

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Bringing together buyers and sellers of energy and related products and services

Planning for New York’s energy future

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Assessing needs over a 10-year horizon and evaluating projects proposed to meet those needs

Advancing the technological infrastructure of the electric system

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Developing and deploying information technology and tools to make the grid smarter

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Grid components

Generation

Makers Entergy, Reliant, Constellation, NYPA, US Power Gen, etc.

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Combined Cycle

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OIL

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Natural Gas & Oil

Ravenswood – Queens, NY

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Coal

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Nuclear Energy Indian Point Fitzpatrick

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Hydropower

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Wind Power

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Grid components

Generation Base Load: Nuclear, Fossil, Hydro Renewable: Wind, Solar, Hydro

Transmission

Bulk System – High Voltage

Makers Entergy, Reliant, Constellation, NYPA, US Power Gen, etc.

Movers System Operator NYISO Transmission Owners ConEd, National Grid, NYSEG/RG&E, NYPA, LIPA, etc.

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Transmission Lines

115 KV 138 KV 230 KV 345 KV 765 KV

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Grid components

Generation Base Load: Nuclear, Fossil, Hydro Renewable: Wind, Solar, Hydro Transmission Bulk System – High Voltage

Distribution

Local System

Makers Entergy, Reliant, Constellation, NYPA, US Power Gen, etc.

Movers System Operator NYISO Transmission Owners ConEd, National Grid, NYSEG/RG&E, NYPA, LIPA, etc. Users ConEd, National Grid, NYSEG/RG&E, LIPA, municipal power systems, etc.

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Distribution Lines

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Grid components

Generation Base Load: Nuclear, Fossil, Hydro Renewable: Wind, Solar, Hydro Transmission Bulk System – High Voltage Distribution Local System

Makers Entergy, Reliant, Constellation, NYPA, US Power Gen, etc.

Movers System Operator NYISO Transmission Owners ConEd, National Grid, NYSEG/RG&E, NYPA, LIPA, etc. Users ConEd, National Grid, NYSEG/RG&E, LIPA, municipal power systems, etc.

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NYISO Metrics

 New York State population –

19 million

 2011 load –

163,330 GWH

 2012 Required Installed Capacity –

38,622 MW

 Record peak - 33,939 MW (Aug. 2, 2006)  Over

335 generating units



11,009 miles

of high voltage transmission  More than

325 Market Participants

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NYISO Governance

Board of Directors

10-member Board of Directors with experience in energy, environment, finance, academia, technology and communications Board members and all employees are independent, with no business, financial, operating or other direct relationship to any Market Participant or stakeholder

President & CEO NYISO Staff Management Committee Operating Committee Business Issues Committee

Market Participant stakeholder committees of individuals from market sectors: Transmission Owners, Generation Owners, Other Suppliers, End-Use Consumers, and Public Power & Environmental Parties

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NYISO Voting Sectors

58% required to pass End-Use Consumers 20%

Government Advocate & Retail Aggregators (1.8%) State-wide Advocate (2.7%) Small Consumers (4.5%)

Other Suppliers 21.5% Generation Owners 21.5% Transmission Owners 20%

Large Consumers - Industrial (9%) Large Consumers - Government (2%)

Public Power 17%

Power Authorities – NYPA & LIPA (8%) Municipals & Co-ops (7%) Environmental Parties (2%)

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ISOs & RTOs

There are now 10 Independent System Operators and Regional Transmission Organizations (ISO/RTOs) in North America. They serve two thirds of electricity consumers in the United States and more than one-half of Canada's population.

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Government Regulation Federal Energy Regulatory Commission (FERC)

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Jurisdiction over transmission service and wholesale power sales Regulates the NYISO and other ISO/RTOs in the United States New York State Public Service Commission (PSC)

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Regulates the NYISO as an “electric corporation” Jurisdiction over generation, transmission siting, resource adequacy, compliance with NYSRC rules, and local electric distribution within New York

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Reliability Regulation

North American Electric Reliability Corporation (NERC)

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Independent, self-regulatory, not-for-profit organization with mission to improve the reliability and security of the bulk power system in the U.S., Canada and part of Mexico

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Established in response to the 1965 blackout

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Compliance with NERC Reliability Standards became mandatory and enforceable in the U.S. in 2007 Northeast Power Coordinating Council (NPCC)

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Includes New York, New England, Ontario, Québec, and the Maritimes

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Formed as voluntary, not-for-profit, regional reliability organization in 1966 Restructured in 2007

New York State Reliability Council (NYSRC)

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Not-for-profit organization established in 1999 Responsible for Reliability Rules specific to the New York State Power System U.S. law authorizes New York State to impose more stringent reliability standards

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Capacity by Fuel Type

Summer 2010 = 37,416 MW MW (1) (1) - All values are from the Summer Capability column in Table III-2 and are rounded to the nearest whole MW.

(2) – Wind Generators - Summer Rating = 10% of Nameplate (3) - Includes Methane, Refuse, Solar & Wood (PS) - Pumped Storage

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Energy by Fuel Type

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Real Time 2%

NY’s Wholesale Electricity Markets

Bilateral Contracts 50% Day-Ahead Market 48 %

NYISO Markets

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Day-Ahead



Real Time

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NYISO Load Zones

D A B C E F J G K I H

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Wholesale Energy Costs

NY Wholesale Electric Energy Costs: 2000 - 2011 (Energy and Ancillary Services)

$160 $140 $120 $100 $94

April 2012 YTD Average $36.05/MWh

$95 $80 $60 $58 $51 $50 $62 $63 $40 $76 $80 $49 $59 $56 $20 $ 2000 2001 2002 2003 2004 Electricity $/MWh 2005 2006 2007 2008 Natural Gas $/10MMBTU 2009 2010 2011

NOTE: 2011 electric costs are estimated

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Historic Peak Loads

Year

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Peak Load

28,166 MW 30,311 MW 28,136 MW 30,983 MW 30,664 MW 30,333 MW 28,433 MW 32,075 MW 33,939 MW 32,139 MW 32,432 MW 30,844 MW 33,452 MW 33,865 MW 33,295 MW (forecast)

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Installed Capacity Requirement

38,622 MW = ICAP Resource Requirement

16% Margin

33,295 MW = 2012 Forecast Peak Load New York State Reliability Council

Installed Capacity Requirement

16% Required Installed Reserve Margin

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Markets at Work

• • • •

New generation transmission and interstate added – where most needed Power plant efficiency and availability improved Renewable “ green power ” resources increasing Demand-side innovations fostered

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Generation Added

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Transmission Added

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Demand Response Resources

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Emissions

Windpower

Existing Wind Generation -- 2011 (nameplate capacity) -- 1,348 MW Proposed Wind Generation (nameplate capacity) -- 7,039 MW

NYISO Planning

Needs Assessment Requests for Solutions Economic Planning Reliability Plan Congestion Study Review of Specific Proposals

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The New York Independent System Operator (NYISO) is a not-for-profit corporation responsible for operating the state’s bulk electricity grid, administering New York’s competitive wholesale electricity markets, conducting comprehensive long-term planning for the state’s electric power system, and advancing the technological infrastructure of the electric system serving the Empire State.

www.nyiso.com

©2010 New York Independent System Operator. ALL RIGHTS RESERVED 37