Twenty-seven New York Independent System Operator market participants have been suspended as a result of the grid operator’s new minimum participation requirements, NYISO staff announced at a Friday Credit Practices Working Group teleconference.
Many of the changes required by the Federal Energy Regulatory Commission’s credit reform ruling came into effect on October 1. In NYISO, the changes included a shift to a weekly settlement cycle, changes to unsecured credit limits, a new minimum capitalization requirement and the mandatory submission of market participants’ officer certification form.
To participate in the NYISO market, companies must demonstrate that they have $1 million in tangible net worth or $10 million total assets. If a company does not meet those minimum capitalization standards it can still participate in the NYISO market by providing additional collateral. Those collateral requirements were set at $500,000 for companies that participate in NYISO’s transmission congestion contracts market and $200,000 for all other participants.
Click here to read more.