FERC accepts NYISO compliance filing on Lake Erie Loop Flows

FERC accepted a joint compliance filing Sept. 21 for a proposed market-to-market coordination (MMC) process by the New York ISO (NYISO) and PJM Interconnection, granting an extension for the implementation date to Jan. 15, 2013, and requiring an additional compliance filing within the month.

This proceeding followed on earlier proceedings to address issues with Lake Erie Loop Flows through service territories for NYISO, the Ontario ISO (IESO), the Midwest ISO (MISO), and PJM. NYISO presented short-term solutions to the power flow issue that were accepted by FERC in August on the condition that NYISO coordinate with the other parties on developing a long-term solution to the issue.

NYISO worked with PJM, MISO, and IESO on an MMC process that would address market distortions from unscheduled power flows and reduce costs associated with congestion.

In the compliance filing, the applicants proposed additional definitions for market-to-market entitlement calculations that they told FERC would “produce equitable results,” as well as redispatch rules that ensure “market-to-market redispatch settlements are limited to circumstances when the non-monitoring RTO is redispatching to provide relief, or the non-monitoring RTO’s market flow exceeds its market-to-market entitlement.”

Additionally, the applicants proposed a requirement that NYISO consider impacts from phase angle regulators (PARs) on the MMC process, noting that PARs will be considered “in-service” when all four regional PAR paths are in service.

In its response, FERC said the applicants did not justify “why the consideration of the impact of … PARs on the MMC process should be limited to the circumstances at play when all … PARs paths are in-service. In fact, there is no record evidence supporting or otherwise justifying applicants’ proposal.”

FERC said that the current proposed formula could take into consideration different PAR configurations, and the applicants told FERC they plan to reconsider this issue when operational data is available.

The applicants indicated in the filing that their joint operating agreement will adhere to existing regulatory obligations in the rollout of the MMC process.

FERC granted a 15-day extension beyond the original Jan. 1, 2013, implementation date for the MMC proposal in order to give the applicants time to make necessary software updates. The applicants have 30 days to submit an additional compliance filing on FERC’s Sept. 21 order.