NYISO CEO Rich Dewey used Wednesday’s Management Committee meeting to brief stakeholders on “the state of the grid” and the ISO’s priorities going forward.
“NYISO is excited about 2023 but is cognizant of the unprecedented challenges” arising from the Climate Leadership and Community Protection Act (CLCPA), which moves New York through “an unprecedented energy transition,” Dewey said.
Dewey said the ISO is focused on effectively transitioning the state’s grid from high-polluting and high-emitting resources to new renewables without compromising reliability. He also listed as priorities: ensuring projects such as the Long Island offshore wind solicitation remain on schedule; improving the interconnection process with more transparency and expediency; and fine-tuning market mechanisms to be more responsive during the transition.
Another priority is to “continue to recruit talented, engaged and motivated people” to NYISO and create a “learning environment focused on inclusion for every team member,” Dewey told the committee.
Scott Leuthauser of Hydro-Quebec Energy Services asked for Dewey’s opinion on the Public Service Commission’s recent approval of 62 renewable projects (See NY PSC Approves 62 Tx Upgrades Totaling 3.5 GW.)
Dewey responded that much of New York’s infrastructure and transmission needs were already identified by NYISO, and so the PSC’s recently approved projects are “compatible with what we see as needed and what we’ve been calling for.”
Chris Wentlent, of the Municipal Electric Utilities Association of New York State, asked Dewey what NYISO’s role would be in implementing the cap-and-invest program proposed by Gov. Kathy Hochul. Mark Younger, president of Hudson Energy Economics, asked whether it would be difficult to implement. (See Hochul Highlights Cap and Invest in State of the State Address.)
Dewey said NYISO has already spoken with heads of state agencies about the proposal, and they have “tapped into our expertise” and expressed “a spirit of cooperation and collaboration.” Dewey said he believes “it wouldn’t be a hard lift” to incorporate carbon pricing into NYISO markets but that “the proof will be in the pudding.”
Chris Casey, a senior attorney with the Natural Resources Defense Council, asked if Dewey believed that a cap-and-invest program might dissuade investors from New York.
Dewey responded that incentive programs that accelerate the transition to renewables can drive economic opportunities, but NYISO wants a balanced approach that “doesn’t create counter incentives that prematurely retire resources.”
Casey also inquired about NYISO’s staffing concerns. Dewey noted that vacancy rates in some parts of the organization were once above 10% of staff levels but have since dropped back to the historic norm of 5% because of the ISO attracting top talent in key areas.
DER Revisions
The MC approved NYISO’s proposed revisions to its participation model for DER aggregation, recommending that the Board of Directors approve them as well.
The revisions process had been contentious, but a NYISO statement promising to revisit its unpopular 10-kW minimum for individual resource participation assuaged stakeholders. The ISO’s Michael DeSocio read the statement before staffer Harris Eisenhardt outlined the revisions, which passed without discussion, objections or abstentions.
With FERC approval, the revisions are expected to go into effect in summer, which is also when DER aggregation open enrollment should begin. (See NYISO Promises to Lower DER Minimum Capability in Future.)