The Management Committee on Wednesday voted for NYISO to not conduct a new cost-of-service study to modify the Rate Schedule 1 cost allocations between units withdrawing and injecting.
The divided vote was previewed last month when NYISO announced stakeholders would have the opportunity to potentially change RS1 allocations, which have been set at 72% for withdrawals and 28% for injections since 2011. (See “Vote Set on Rate Schedule 1,” NYISO Management Committee Briefs: June 13, 2023.)
Some stakeholders opposed the motion and voted in favor of conducting the study, arguing that the allocations had not been updated in a long time and keeping things up to date was important because new technologies are entering the grid.
David Clarke, director of wholesale market policy at LIPA, argued in favor of conducting the study, saying, “we have put this off for a long time. … It is probably important to do this at least once a decade.”
On the other hand, Scott Leuthauser of Hydro-Quebec Energy Services argued against the study, saying, “it seems to me that nobody’s really opposed to the current values.”
“We have so many really high-priority projects that we’re not doing because resources are not available, so let’s just keep it for another year,” he added.
Howard Fromer, who represents Bayonne Energy Center, asked how distributed energy resources aggregations fit into these RS1 mechanisms.
Chris Russell, senior manager at NYISO, responded: “DER aggregations will be charged as a generator essentially,” adding, “these resources would be charged the injection rate similar to how we charge special resources cases today.”
Russell also said storage resources in an aggregation would be charged the prevailing injection rate whether it was injecting or withdrawing.
Erin Hogan of the state’s Utility Intervention Unit argued that these resource-related issues highlight the need to update the RS1 cost allocations.
The motion passed with 91.22% of the vote in favor of not conducting the RS1 study.
Board Selection Subcommittee
NYISO CEO Rich Dewey announced the ISO is forming a new board selection subcommittee to seek a replacement for Ave M. Bie, whose term ends in April.
Dewey said Julia Popova, chair of the MC and NRG Energy’s manager of regulatory affairs, will lead the subcommittee.
Bie is a former chair of the Wisconsin Public Service Commission and joined NYISO’s board in April 2009.
