NYISO and PJM Increase Scheduling Frequency
FERC-Approved Plan will Result in Greater Market Efficiency and Resource Flexibility
RENSSELAER, NY (07/19/2012)(readMedia)-- The New York Independent System Operator (NYISO), a not-for-profit corporation that operates the bulk electricity grid and wholesale electricity markets serving New York, announced today that it has implemented an improved scheduling process with PJM Interconnection, which serves all or parts of Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia and the District of Columbia.
The new Enhanced Interregional Transaction Coordination (EITC) measures will enable more frequent energy transaction scheduling between the New York and PJM control areas. The move will lower overall system operating costs, provide system operators with additional resource flexibility and increase the efficiency of real-time markets.
"By reducing the time between the scheduling and pricing of energy at the PJM border, we will increase efficiency and reduce costs to our consumers," said NYISO President and CEO Stephen G. Whitley. "This is another important step in the Broader Regional Markets initiative that will expand the pool of resources available to help the NYISO and our neighbors more quickly balance supply and demand on our interconnected electric systems."
Previously, the scheduling of power flowing between the systems had to remain constant for an hour. Shortening that time to 15 minutes allows for power flows to better correspond to overall system needs.
"Providing greater flexibility in scheduling power flows between our two regions increases reliability and provides more efficient, lower-cost market pricing for customers in both regions," said Terry Boston, PJM president and CEO. "This scheduling change is just one great example of the benefits of creativity and cooperation among grid operators."
Last year, the NYISO transitioned to more frequent schedules with Québec. The Broader Regional Markets initiative calls for similar scheduling improvements to be implemented with each of New York's other neighboring grid operators.
While now interconnected, the various power grids and wholesale electricity markets serving the United States and Canada were developed separately and reflect differences in geography, climate, reliability requirements and available power resources. These differences-seams in the overall fabric of grid-can inhibit efficient coordination of grid operations. The Broader Regional Markets initiative is an effort to mend seams, enhance efficiency of existing resources and reduce costs for power consumers.
The Broader Regional Markets initiative involves the NYISO, PJM Interconnection, ISO New England, the Midwest Independent Transmission System Operator, Ontario's Independent Electricity System Operator and Hydro Québec. The collaborative effort among the region's grid operators is intended to optimize the use of existing resources and complement the development of new resources.