Tuesday, March 26, 2019

FERC Grants NYISO Shortage Pricing Waiver

FERC last week granted NYISO a waiver of its shortage pricing rules, giving the ISO time to align its Tariff with its market software (ER17-758).

NYISO requested the waiver after its Market Monitoring Unit discovered that the ISO’s software had not been calculating prices in accordance with the Tariff language since it implemented transmission shortage cost pricing in February 2016.

FERC NYISO waiver Shortage Pricing


The MMU, Potomac Economics, reported the problem to the ISO at the end of August 2016. After further investigation, the ISO told stakeholders Nov. 3 that the inconsistencies constituted a “Market Problem” because they had materially impacted its markets.

The ISO asked FERC to waive the relevant Tariff provisions from Feb. 11, 2016, until the Services Tariff was revised — as occurred June 14, 2017, when the commission accepted the ISO’s proposed revisions, under delegated authority.

“NYISO now realizes that it inadequately explained the pre-existing logic for its software and the interaction of this logic with the graduated transmission shortage cost provisions,” FERC recounted.

Noting that no commenters opposed the waiver, the commission said that the ISO had “acted in good faith and worked diligently with MMU and its stakeholders to resolve the inconsistency.”

— Rich Heidorn Jr.