NYISO Issues Comprehensive Reliability Plan

RENSSELAER, NY (01/11/2011)(readMedia)-- The Board of Directors of the New York Independent System Operator (NYISO) has approved the 2010 Comprehensive Reliability Plan (CRP) for New York's power system.

"While electric system planning traditionally focuses on forecasting load growth and the resources needed to meet the growing demand for power, the NYISO recognizes that factors other than load growth can contribute to reliability concerns. The 2010 CRP considers factors relating to aging infrastructure and significant environmental initiatives that may impact power resources. This plan relies on vigilant monitoring of potential retirements of existing resources and other factors," said Stephen G. Whitley, NYISO president and CEO.

The 2010 CRP is the product of the Comprehensive Reliability Planning Process conducted by the NYISO to provide a blueprint for meeting the reliability needs of the state's bulk electricity grid over a 10-year planning horizon. The multi-phased process includes an assessment of reliability needs prior to development of the reliability plan.

In September, the NYISO issued the 2010 Reliability Needs Assessment (RNA), which reported that New York state's electric power resources (generation, transmission and demand-side programs) are expected to meet the state's electricity reliability needs through 2020, assuming energy efficiency programs and planned resource additions proceed as anticipated and no significant facilities are retired from service.

The 2010 RNA also identified several key risks and uncertainties. These include:

• A stronger than expected economic recovery that could pose reliability risks in 2019, absent the projected impact of energy efficiency programs.

• The Indian Point retirement scenario, which showed reliability violations in 2016 if both units retired when their current licenses expire. If the Indian Point plant were to retire in 2016 without the development of adequate replacement generation in Southeastern New York to ensure adequate resources and transmission security, impacts would include loss of power supply and transmission voltage support affecting the metropolitan New York region.

• The combined impact of proposed environmental regulations including control technology requirements for nitrogen oxides (NOx), as well as a proposed policy requiring power plants to utilize closed cycle cooling and other regulatory initiatives, which could result in unplanned plant retirements that may impact reliability.

• The unscheduled retirement of more than 1,000 MW of generating capacity in the Long Island, New York City, or Lower Hudson Valley regions, which would pose reliability risks. (The RNA additionally noted that specific plant retirements could cause transmission problems.)

The 2010 RNA also reviewed a scenario that indicates that full and effective implementation of New York State's 45x15 Clean Energy Strategy (a 15 percent reduction in electricity demand and supply of 30 percent of New York's electricity from renewable resources) would improve the adequacy of system resources.

While there were no reliability needs identified in the planning process, the NYISO will continue to monitor potential reliability risks and other issues that may have the ability to affect the outlook of New York's electric system. This effort will include:

• Ongoing critical asset tracking, including planned development of generation, transmission and demand response resources;

• Review of the cumulative effect of emerging environmental regulations;

• Evaluation of the impacts of the New York State Energy Efficiency Portfolio Standard (EEPS) initiative; and

• Assessment of the voltage performance of the bulk power system.

The 2010 CRP was developed within the NYISO's stakeholder process, which provides input from regulators and market participants who supply, use, transmit and trade energy in New York's wholesale electricity markets.

More information about the 2010 Comprehensive Reliability Plan is available on the NYISO website – www.nyiso.com.

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