FERC has accepted, with conditions, New York ISO’s (NYISO) proposed tariff revisions under which generators provide restoration services in the Consolidated Edison Company of New York (Con Edison) local restoration plan to restore electric service to New York City in the event of a major system disturbance.
While all of the proposed revisions only impact generators providing restoration services under the Con Edison plan, NYISO’s proposed revisions include minor changes to the provisions governing generators under NYISO’s plan or individual transmission owner plans other than the Con Edison plan, FERC said in its Oct. 31 order.
Notably, “proposed section 15.5.1,” which applies to all generators providing restoration services within NYISO, states that the individual transmission owners are to designate the generators that will be included in their plans.
Other revisions clarify that each customer is to pay for restoration services based on its share of the supply of load in the New York Control Area that is not used to supply station power as a third-party provider under the NYISO open access transmission tariff.
NYISO also proposed to modify the testing criteria for steam turbine units providing restoration services. The current black start capability test requires steam units to perform a full start-up from hot condition, synchronize to the transmission system within six hours and be firm to the system and operating within eight hours. NYISO’s proposed revisions require steam turbine units to perform the existing, full start-up test only once every three years.
NYISO proposed that its tariff revisions be made effective by Nov. 1, according to the order.
FERC said that it finds that NYISO’s proposed tariff revisions appear to be a reasonable step in meeting concerns over the adequacy of black start service to support a local system restoration in New York City.
“The filing had near unanimous approval of NYISO stakeholders and the commenters in the instant proceeding are in agreement, or do not contest, that NYISO’s proposed revisions are important to help ensure the timely and efficient restoration of electric service to New York City in the event of a significant system disturbance,” FERC said.
NRG (NYSE: NRG) Companies, including NRG Power Marketing, filed the only protest in the proceeding, noting that while it supports most of the terms of NYISO’s proposed revisions, it protests NYISO’s attempt to eliminate a generator’s right to file its own rate schedule for restoration services with FERC.
NRG asked FERC to confirm the right of a public utility to file its own rate schedule to provide services in the NYISO market and to reject NYISO’s proposal to require a generator to file a special, unit-specific rate with FERC under section 206 of the Federal Power Act (FPA).
“We find that the language proposed…referring to FPA section 206…is confusing because other language in the proposed provision does not purport to impose a section 206 burden on the filing generator to show that the existing tariff rate…is unjust and unreasonable,” FERC said, adding that it grants NRG’s request to the extent it seeks rejection of the proposed language referencing section 206.
However, FERC denied NRG’s request for a declaration of a general right to file its own rate schedule under the FPA, as that issue goes beyond the scope of the instant filing.
Among other things, FERC said that because the proposed tariff provides the terms and conditions under which generators provide restoration services in the Con Edison plan and in certain respects requires the modification of that plan, NYISO is to revise a rate schedule to provide that, upon receipt from Con Edison, NYISO will file the revised Con Edison plan with FERC as an informational filing.
The order came as New York and other East Coast states were experiencing outages after Hurricane Sandy made landfall near Atlantic City, N.J., on Oct. 29 as a post-tropical cyclone.
NYISO said on Nov. 5 that it continues to work with the state’s electric utilities, power producers, government agencies and its neighboring regions as they focus on recovering from the impacts of the storm.
Ties to ISO New England have been restored, NYISO said, adding that 19 transmission circuits remain out of service, including four of the five ties between New York City and New Jersey. An additional 347 MW of generation capacity have been restored since Nov. 4, NYISO said, adding that about 2,589 MW remain out of service.
“While New York state’s bulk electric system continues to meet all criteria for transmission and operating reserves, significant challenges remain for the utilities and generation owners as they work to repair the unprecedented damage and restore power,” NYISO said.
Con Edison is a subsidiary of Consolidated Edison (NYSE:ED).