During its last meeting of the year Dec. 18, the NYISO Management Committee approved two proposals that would institute a new design for the reserve market and alter a calculation used in the regulation service market.
Stakeholders approved tariff revisions to establish dynamic reserves, as opposed to the current static model, which bases the reserve requirement on the largest single source contingency and assumes the transmission system is fully scheduled.
Dynamic reserves, however, can be adjusted in real time based on grid conditions. This would allow NYISO to procure the lowest-cost mix of generation to meet current system conditions. The ISO expects this to help as the system depends more on intermittent resources and during extreme weather conditions.
The proposal has been in development since 2021, with the release of the Reserve Enhancements for Constrained Areas study, which found that the current modeling of reserve regions could not reflect the needs of the grid to respond to system changes in real time.
Implementation of dynamic reserves is planned for 2027. NYISO is targeting the second quarter of next year to file the final tariff revisions with FERC.
The MC also approved an update to the Regulation Movement Multiplier, a factor used to schedule regulation service providers. It represents the relationship between the number of megawatts of regulation capacity the ISO has historically sought to maintain each hour and the regulation movement megawatts instructed by automated generation control each hour.
25th Anniversary
In his monthly address to the committee, NYISO CEO Rich Dewey noted that Dec. 1 was the 25th anniversary of the ISO.
“There are 28 employees still around who went through that transition, and there are 22 NYISO employees that weren’t even born yet when we did that,” said Dewey, referring to the evolution of the New York Power Pool to the ISO.
He congratulated stakeholders on their work. “Many of you also participated in the development of our rules and the formation of the ISO. … I’m looking forward to the 50-year anniversary, which is 25 short years away.”