FERC has approved NYISO’s tariff revisions that change the mechanism by which generators opt in to the “firm fuel” capacity accreditation resource class, enable modeling improvements related to natural gas constraints and update the bidding requirements for capacity suppliers (ER25-2245, ER25-2257).
The proposal was the subject of months of discussions between NYISO, stakeholders and the Market Monitoring Unit. (See Firm Fuel Proposal Continues to Confuse NYISO Stakeholders.) The Board of Directors approved the revisions in May.
The revisions, effective July 16, are aimed at shoring up winter fuel as the New York grid transitions into a winter-peaking system. The ISO and the New York State Reliability Council are concerned the downstate gas turbine fleet will find itself competing with home heating for fuel during peak periods.
Suppliers will have until Aug. 1 each capability year to opt into the firm fuel capacity accreditation resource class. For the first capability year under the new paradigm, 2026/27, NYISO requested — and FERC approved — a slightly later deadline of Nov. 1 for generators to elect as firm to give market participants time to adjust to the changes.
Generators opting firm must have fuel supply, transportation and replenishment strategies in place by Dec. 1 of the capability year through the end of February. They must be able to run for 56 hours over seven consecutive days during the winter period.
If a generator is unable to secure firm fuel supplies or if something has gone wrong with the fuel supplier, it is required to notify NYISO. Doing so essentially compensates that generator as if it opted as non-firm. Failure to notify NYISO could result in audit and financial sanctions.
Failure to perform as required could result in audit and financial sanction if the failure was found to be within the plant management’s control.
NYISO’s tariff revisions were supported by the Independent Power Producers of New York and Ravenswood Operations. They told FERC that proposal will produce “efficient outcomes that reflect the marginal reliability value of conventional generators” and better address winter reliability risks.
