NYISO Strategic Plan: Efficient Markets Power Reliability

RENSSELAER, NY (12/07/2015)(readMedia)-- Strengthening New York's efforts to sustain electric system reliability powered by markets, the New York Independent System Operator (NYISO) today released its multi-year Strategic Plan. The 2016-2021 plan focuses on efficient wholesale electric markets, integration of distributed energy resources, and technology investments to prepare for future changes in the grid.

The plan is based on the NYISO Board of Directors' review of financial and regulatory outlooks, as well as the economic and environmental factors affecting market participants and stakeholders. It accounts for market and regulatory trends that will shape the industry going forward, and positions the NYISO's markets, planning processes, and operational practices for changes in the energy industry landscape.

"We've seen over the past 15 years that competitive markets create a powerful incentive to improve efficiency and reduce costs, while providing an effective means to achieve public policy goals," said NYISO Board Chair Michael Bemis. "The NYISO's Strategic Plan is aimed at continuing market evolution to meet emerging challenges."

Earlier this year, the NYISO's report, Powering New York Responsibly, highlighted the value of competitive markets in sparking improved efficiency. The report showed that an estimated reduction of $6.4 billion in fuel costs, greenhouse gas emissions reductions of approximately 40%, and investments in renewable resources and cleaner generation have benefitted consumers and the environment.

The NYISO maintains robust planning processes; fosters technological innovation; and serves as an independent, objective and authoritative source of information for policymakers, market participants and consumers. With a strong focus on financial discipline, the NYISO remains committed to market transparency and to its role as a leader in grid reliability, market design and performance.

Over the next five years, the NYISO will lead efforts in the following areas:

? Reliability through Markets

o The NYISO will enhance its energy and capacity markets as necessary to maintain system reliability and operate efficient wholesale power markets. Market signals must align with system reliability needs in order to have effective resource response in the short-term and to encourage investment when and where it is needed over the long-term.

? Integration of Distributed Energy Resources

o The NYISO will develop the tools needed to plan and operate the bulk power system in an environment that includes greater levels of distributed energy resources. The NYISO market design will drive changes that support the integration of new resource types.

? Technology and Infrastructure Investment

o The NYISO will position itself to manage the increasingly complex, costly, but necessary systems required to run New York's bulk power system and wholesale markets. IT infrastructure is the backbone of reliable grid operations and efficient markets. The upgrade of the Energy Management and Business Management Systems (EMS/BMS) is a substantial effort requiring the commitment of resources across the organization. The EMS/BMS upgrade is critical for the NYISO to meet its core reliability and market objectives going forward.

? Integration of Public Policy

o The NYISO will assume a pivotal role in the integration of Public Policy objectives while taking appropriate steps to ensure that such efforts complement open, fair and competitive markets.

? Sustainable Business Model

o The NYISO will position itself to operate increasingly complex systems in an environment of increased cost pressure. The NYISO will address the costs associated with meeting these challenges by identifying cost drivers and taking steps to reduce those that can be managed.

The Strategic Plan serves as the building block for the NYISO's annual Business Plan, which sets business and project priorities for the year to come.

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