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The New York ISO has submitted market rule changes for consideration by the Federal Energy Regulatory Commission (FERC) which, if accepted, will stimulate the investment needed to meet the state’s decarbonization and renewable investment mandates.
The NYISO’s proposal also implements measures to maintain a reliable grid while minimizing costs for New York’s electricity consumers.
The proposal was approved by over 82 percent of NYISO stakeholders, following months of analysis and engagement with stakeholders, regulators, and policymakers through the NYISO’s open governance process. Those voting for the proposal include the New York State Utility Intervention Unit, the New York State Energy Research Development Authority, the New York State Power Authority, the Long Island Power Authority, and the City of New York.
If accepted by the FERC, the NYISO expects these new market rules will support and advance the objectives of the state’s Climate Leadership and Community Protection Act (CLCPA) by further opening wholesale electricity markets to significant investment in wind, solar and battery storage development.
“I am extremely thankful to our stakeholders, including our partners at the Department of Public Service, NYSERDA, NYPA, LIPA, the City of New York, and the New York State Utility Intervention Unit, for working collaboratively to reach a solution that best positions the state for the grid of the future,” said Rich Dewey, President and CEO of the New York ISO. “This change will accelerate renewable development and help reach New York’s mandates under New York’s Climate Act. This change also positions the NYISO’s markets to serve New York electricity customers reliably and will attract new technologies needed for a cleaner grid.”
“The market rule changes proposed by the NYISO will remove significant impediments to the development of renewable resources that can be added to New York’s statewide power grid,” said Justin E. Driscoll, Interim President and CEO of the New York Power Authority. “Expansion of renewables and build out of new transmission are key elements to building an energy infrastructure that supports a nation-leading clean energy economy right here in New York State.”
Doreen M. Harris, NYSERDA President and CEO said, “Rapidly scaling up clean energy generation across the state is critical to delivering a climate resilient and healthier state for all New Yorkers as we continue to grow our green economy in the face of climate change. NYSERDA appreciates the NYISO’s support of New York’s Climate Leadership and Community Protection Act goal to secure 70 percent of our energy from clean, renewable sources by 2030 and looks forward to their continued partnership as we strive to meet our state’s climate goals.”
“NYISO’s proposal is an important reform to wholesale electricity markets to promote wind, solar, and battery storage in New York, while maintaining a reliable and affordable electric grid for customers. The approval by 82 percent of NYISO stakeholders demonstrates the commitment of the NYISO and market participants to meeting the state’s carbon reduction goals,” said Thomas Falcone, CEO of the Long Island Power Authority.
The process leading up to the proposal being submitted to the FERC included a year of analysis and deliberation by stakeholders, government partners and market participants through the NYISO’s open governance process. The NYISO, with stakeholder input, performed a consumer impact analysis, which found that if the market rules are accepted by the FERC as proposed, consumers could expect annual savings of nearly $500 million.
The proposal is the culmination of twenty stakeholder meetings since the project begun in 2021. Notable milestones include:
Putting the new rules into place is important to support future investment in new technologies supplying the grid. The NYISO has asked the FERC to accept the proposal and make the new rules effective March 6, 2022.
