NYISO on Monday submitted a FERC compliance filing to establish a proposed effective date for the Part A test enhancements to its buyer-side market power mitigation rules (BSM) and requested an extension of time to submit all needed tariff changes no later than Aug. 1 (ER20-1718-003).
The commission in February reversed its September 2020 decision to reject the ISO’s proposal, voting 4-1 to accept NYISO’s revisions to the rules designed to prioritize evaluating state-subsidized resources. (See FERC Reverses Itself on NYISO BSM Exemptions.)
The Part A enhancements allow for evaluation of the new, policy-driven clean energy projects before evaluation of conventional energy projects and all projects under the Part B test, which is based on forecasts of unit-specific economics, the ISO said.
NYISO said that when it files the conforming tariff changes it will also address the effective date for the Part A enhancements “such that they will apply to the Class Year that begins immediately following Class Year 2021.”
Significant progress in Class Year 2021 has already been made over the past year, with several process milestones pertaining to the Part A enhancements having long since passed, and “trying to implement the Part A enhancements at this time to Class Year 2021 could be disruptive and cause confusion,” the ISO said.
NYISO originally filed the Part A enhancements in April 2020.
Initially, the ISO intended to implement the Part A enhancements for the Class Year 2019 study and included tariff language explaining that the revisions would apply to the Class Year 2019 and all subsequent BSM evaluations of examined facilities. Class Year 2019 was completed in January 2021, and Class Year 2021 began in March 2021.
Under the Part A test, NYISO will exempt a new entrant from the offer floor if the forecast of capacity prices in the first year of a new entrant’s operation is higher than the default offer floor, which is 75% of the net cost of new entry of the hypothetical unit modeled in the most recent demand curve reset.