December 22, 2024
NYISO Manual Changes for New SRE Penalty OK’d
NYISO approved manual changes to accommodate a new penalty scheme to improve the ISO’s ability to call on external capacity resources.

In a brief teleconference meeting Wednesday, the NYISO Business Issues Committee approved manual changes to accommodate a new penalty scheme to improve the ISO’s ability to call on external capacity resources.

The revisions to the Installed Capacity Manual and Transmission and Dispatch Operations Manual, aligning them with the external supplemental resource evaluation (SRE), passed without opposition.

Under the new scheme, any external resource that fails to meet delivery criteria would be subject to the penalty, which is equal to 1.5 times the applicable spot price multiplied by the number of megawatts of shortfall and the percentage of the SRE call hours to which a supplier fails to respond.

NYISO
LBMP import transactions use an external proxy bus as the source and the NYISO reference bus as the sink. | NYISO

External capacity suppliers would not be subject to the penalty if their failure to deliver is beyond their control. The ISO would calculate deficiencies monthly, using the total number of SRE call hours in a given month that the resource could be available and the total megawatt shortfall in that month.

The market operations report was not included in the BIC meeting materials because the data had not yet been compiled. It will be added to the meeting materials once completed, said Robb Pike, director of market design and product management.

— Michael Kuser

Capacity MarketGenerationNYISO Business Issues Committee

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