The New York ISO has filed at FERC to model a new locational reserve region for New York City and the reserve requirements associated therewith (i.e., 1,000 MW of the statewide 30-minute reserves requirement and 500 MW of the statewide 10-minute reserves requirement) in its market software.

"Explicit inclusion of the New York City reserve requirements in the market software will provide improved price signals regarding the location-specific value of the reserve capabilities required within New York City, including during periods when the NYISO activates the SCR program and/or EDRP," NYISO said

"Such explicit modeling also provides the opportunity for improved efficiency in the scheduling of resources through extension of the market’s co-optimization of products and services to include the procurement of reserves within New York City," NYISO said

The NYISO proposes to apply Operating Reserve Demand Curves that assign a maximum allowable Shadow Price value of $25 per MWh to the proposed New York City reserves, except for any Load Zone J Scarcity Reserve Requirement established in real-time as the result of an activation of SCRs and/or EDRP within New York City. Any such Load Zone J Scarcity Reserve Requirement would be assigned an Operating Reserve Demand Curve value of $500 per MWh. "Based on the NYISO’s review of 2018 market outcomes described above, the proposed $25 per MWh value provides a reasonable increment over the otherwise prevailing reserve costs in other reserve regions (e.g., SENY as it relates to 30-minute reserves and East of Central-East for 10-minute reserves) to encourage efficient resource commitment and dispatch outcomes and shifting of reserve schedules to resources located in New York City in response to the reserve requirements for the proposed New York City locational reserve region. This value reasonably accounts for the typical range of potential foregone revenue margins that may arise from scheduling resources to provide reserves instead of Energy and/or Regulation Service," NYISO said

See NYISO's filing or more details

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Pricing   New York   NYISO  

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