NYISO Participates in PSC Technical Conference

RENSSELAER, NY (05/15/2014)(readMedia)-- The New York Independent System Operator (NYISO) participated in the New York State Public Service Commission's (PSC) May 15 technical conference on winter energy pricing and supply. NYISO Vice President of Operations Wes Yeomans reviewed NYISO operations during the five major cold snaps this past winter as three "Polar Vortexes" extended across much of the country and drove a new record winter peak demand for electricity in New York.

Mr. Yeomans informed the PSC that the fuel diversity of New York's generation fleet, power plants with dual-fuel capability, market signals and excellent regional coordination all contributed to maintaining uninterrupted electric service.

"While the regional and sustained nature of the cold weather this past winter placed tremendous demands on both the gas and electric systems, reliable service was maintained for millions of customers," said Mr. Yeomans.

In addition to reviewing cold weather operations, Mr. Yeomans highlighted a number of initiatives the NYISO is working on with the gas industry and other stakeholders in response to lessons learned during the cold snaps. The efforts, part of the ongoing work of the NYISO's Electric-Gas Coordination Working Group, include:

• Improving grid operator awareness of both generator fuel status and gas pipeline system conditions.

• Working to better coordinate electric and gas infrastructure maintenance outages.

• Exploring potential market rule changes that will better recognize the value of generators' fuel assurance to avoid the potential of limited fuel supplies during sustained periods of high demand.

• Considering improvements to allow generators to more accurately reflect fuel supply constraints when bidding the NYISO's day-ahead energy market.

• Continuing active participation in the Eastern Interconnection Planning Coordination studies that are examining current and future gas pipeline capability, potential coal and nuclear plant retirements and the increased amount of gas-fired generation throughout the region.

Winter Operations

On January 7, the NYISO successfully met a new winter record peak demand for electricity of 25,738 megawatts (MW), eclipsing the previous winter peak record of 25,541 MW set in 2004. In addition, Mr. Yeomans pointed out that month-long electricity use also set a record this January, reaching a total of 14,719 gigawatt-hours, the highest January total in the 15-year history of the NYISO.

Extremely cold temperatures over a prolonged period of time, such as those experienced on five different occasions this winter, can cause equipment problems on the electric system. At the PSC technical conference Mr. Yeomans reviewed the NYISO's preparations and performance and the amount of generation that was unavailable during the cold snaps as a result of fuel, weather-related and other problems.

While New York benefits from a diverse fuel mix for its generation fleet-including nuclear, natural gas, hydro, coal, wind and oil- natural gas fuels the largest percentage of the generation portfolio. In the winter, the millions of retail residential, commercial and industrial gas customers served by local utilities have priority on the pipeline system to meet heating and commercial needs. The high demand for natural gas and limits on gas pipeline infrastructure during periods of extreme cold weather over a large portion of the country can reduce the availability of natural gas for power plants and drive up the cost of gas.

A copy of the NYISO's presentation at the technical conference is available at www.nyiso.com.