Energy Law

NYISO's Plan to Integrate Wind Power Wins FERC Approval

By Maria Urbina

FERC issued an order June 17 approving the New York Independent System Operator's (NYISO) proposed tariff revisions intended to accommodate wind generating resources in its day-ahead and real-time energy markets. One revision increases the amount of intermittent renewable capacity eligible for special market rules from 1,000 MW to 3,300 MW; in effect, this would increase the amount of intermittent renewable resources eligible for an exemption from persistent under-generation charges. A second revision implements a centralized and mandatory wind forecasting system for all facilities 12 MW or larger. Under the wind forecasting system, wind plant operators would be responsible for the cost of installing and maintaining equipment necessary to collect meteorological data, like wind speed and direction, to be transmitted to NYISO every 15 minutes. NYISO also plans to enforce the wind forecasting system by imposing daily financial sanctions on wind resources that fail to provide the required information or comply within a reasonable notice period. The tariff revisions take effect June 18, 2008.

In its ruling, FERC states that the proposed revisions will encourage wind and other intermittent generators by extending special payment provisions and penalty exemptions to more generators. FERC also asserts that a centralized wind forecasting system will allow NYISO to predict more accurately the availability of wind resources and thereby lower the cost of keeping those resources on line. Additionally, FERC ordered NYISO to submit within two years an informational report evaluating the progress of this program and providing information regarding the costs of this service, the revenues collected and the disposition of those revenues.

Full post as published by Energy Legal Blog on July 09, 2008 (boomark / email).