NYISO Issues Comprehensive Reliability Plan

RENSSELAER, NY (04/11/2017) (readMedia)-- New York's bulk power system will meet all applicable reliability criteria through 2026, according to the 2016 Comprehensive Reliability Plan (CRP) approved today by the New York Independent System Operator (NYISO) Board of Directors.

The NYISO's Reliability Planning Process provides a blueprint for meeting electric system reliability requirements and strives to utilize market-based solutions when possible. This approach encourages developers and investors to assess and assume the risks of investments while minimizing costs to consumers.

Every two years, the NYISO's Reliability Planning Process examines the reliability of the state's electric system over a 10-year planning horizon. The NYISO uses a multi-faceted approach to plan for the future of New York's power system, which includes complex computer models to assess the capability of the transmission system and the adequacy of resources that connect to that system.

While finding that all reliability needs have been satisfied on the bulk power system, the 2016 CRP notes that reliability margins could change over the study period (2017-2026) based upon changes in assumptions and other possible risk factors.

These factors include:

• Changes in generation and transmission resources available to the electric system.

• Potential of higher-than-forecasted demand for electricity.

• Performance of aging infrastructure.

• Potential sale of capacity to neighboring markets.

• Potential for delays in the development of proposed generation projects.

• Environmental regulatory programs that could limit the availability of generators to the electric system.

• Growing reliance on natural gas.

• Potential for delays in the implementation of local transmission plans.

The CRP also makes clear that recent developments concerning the future of nuclear generating units in New York could impact system resources requiring additional study and monitoring.

They include:

• Indian Point

o On Jan. 9, Entergy and Governor Andrew Cuomo announced an agreement to close Indian Point units 2 and 3 by 2020 and 2021, respectively.

o This development will require further detailed analysis. When the NYISO receives an official Generator Deactivation Notice for the Indian Point units, the NYISO will use the most up-to-date information to determine whether reliability needs result from the closure of those units as required by its tariffs and procedures.

o The NYISO also will examine the Indian Point deactivation in its 2018 RNA.

• R.E. Ginna and James A. FitzPatrick Nuclear Plants

o Based upon notices from the plants' owners, the 2016 RNA and CRP assumed both the R.E. Ginna and James A. FitzPatrick nuclear power plants would be out of service.

o According to updated information on the status of these units, it appears they may continue to operate for some period of time, which would increase the system's reliability margin.

Reliability planning is the key to maintaining the integrity of the electric grid. The NYISO continuously plans the system and monitors developments to address potential reliability needs. The NYISO will begin preparing its 2018 Reliability Needs Assessment in January, 2018 – the next milestone in the NYISO's rigorous planning process. Scheduled for completion in the fall of 2018, the RNA will evaluate the 2019-2028 planning horizon, identify any potential reliability needs, and establish the basis for soliciting solutions if necessary.