NYISO Seeks More Time for Local Capacity Market Power Mitigation Measures

The New York ISO has asked FERC for more time to develop additional market power mitigation measures that NYISO believes are required as part of implementing new local capacity zones, as directed by a recent FERC order.

FERC established requirements compelling the creation of new local capacity zones in September (see 9/9). In that order, FERC noted that, "additional market power mitigation measures may be needed for an established new capacity zone."

The NYISO reported that it has discussed market power mitigation with the Market Monitoring Unit (MMU), and said that both, "agree that a consistent set of supplier-side and buyer-side market power mitigation measures applicable to all New Capacity Zones should be included in the NYISO's tariffs."

"The NYISO envisions that these measures would be imposed only on suppliers including, with respect to buyer-side mitigation, new market entrants in New Capacity Zones that trigger clear and objective market power screens. The specific parameters and thresholds under the generally applicable screen might vary from one New Capacity Zone to another," NYISO said.

But, "[g]iven the inherent complexity of designing such measures it was not possible to develop a market power mitigation proposal by the deadline for making this filing," NYISO said.

NYISO intends to make a further compliance filing, no later than June 30, 2012, that would propose new market power mitigation tariff provisions that would apply to any future New Capacity Zone.

NYISO noted that this subsequent filing would still occur almost two years before any New Capacity Zone would be activated.