By William Opalka

Bradley Jones, who stepped in as CEO of NYISO late last year, recently told RTO Insider that his three top initiatives “have always been transmission, transmission, transmission.”

He came to the right place. Transmission upgrades dominated activity in the NYISO footprint in 2015 and promise to occupy headlines in 2016.

The improvements are occurring amid a changing energy landscape. State officials and regulators are deciding how to handle aging and unprofitable power plants in western New York. Meanwhile, the Reforming the Energy Vision initiative seeks to encourage the growth of distributed and renewable resources throughout the state.

The New York Public Service Commission last month declared a public policy need for an expected $1.2 billion in upgrades to move 1,000 MW of power from upstate generation sites to load centers in and around New York City. The project has been discussed for more than three years; now, NYISO will seek bids on the projects. The PSC hopes to evaluate siting proposals by the end of the year, with approvals anticipated in 2017. The upgrades are expected to be in service in 2019. (See NYPSC Declares Public Policy Need; Directs NYISO to Seek Tx Bids.)

Future of Nuclear Uncertain

Will the transmission projects come too late to save aging and unprofitable nuclear and coal-fired power plants in the western part of the state? Or, as environmental and consumer advocates might ask: Are those plants even worth saving?

In his State of the State address on Jan. 13, Gov. Andrew Cuomo is expected to announce details of a plan to shift the state to 50% renewable energy by 2030, along with a strategy to keep the nuclear plants open until then by offering some financial recognition of their carbon-free emissions. (See Cuomo: 50% Renewables by 2030, Keep Nukes Going.)

Nevertheless, Entergy is standing by its decision to close the James A. FitzPatrick nuclear plant on Lake Ontario in late 2016 or 2017.

Exelon and stakeholders are finalizing a reliability support service agreement for the R.E. Ginna nuclear plant that would run through March 2017 — after which, the company says, the plant is likely to retire. The PSC has extended the negotiating window for that deal to Feb. 29. (See Ginna Lifeline to End in 2017; Profits After ‘Unlikely’.)

At the same time, the state’s REV proceeding is continuing with development of demonstration projects, including microgrids and energy efficiency programs.

Much attention will be paid to the anticipated Track 2 Order that addresses rate design for the new business models. (See NYPSC Outlines Reforming the Energy Vision Changes.)

RMRs Winding Down

In the meantime, several reliability-must-run agreements that pay unprofitable plants above-market rates are starting to wind down. Some of the facilities hope to repower with natural gas, proposals that will be addressed by regulators this year.

One of these, the coal-fired Dunkirk station outside of Buffalo, was mothballed Dec. 31, when its RSSA expired. Owner NRG Energy has suspended the repowering plan pending resolution of a lawsuit filed by Entergy. (See NRG Plant Closures Could Impact Reliability in NY.)

The 312-MW Cayuga coal-fired plant outside of Ithaca is operating under an RSSA through mid-2017. Although its owner has proposed converting it to natural gas, a transmission project proposed by a distribution utility and endorsed by environmentalists could make the plant unnecessary.

Plans to convert the idled Greenidge power plant on Seneca Lake to gas are on hold as EPA has said it must undergo a “new source” review.