FERC’s Acceptance of NYISO’s Proposed Tariff Revisions Ensures State’s Clean Energy Goals Will be Met Efficiently and Reliably

Albany, NY – Yesterday evening, the Federal Energy Regulatory Commission (FERC) issued an order accepting the New York Independent System Operator, Inc.’s (NYISO) proposed tariff revisions to exempt State-supported clean energy resources from the NYISO’s buyer-side market power mitigation measures (BSM Rules), improve the valuation of resources’ installed capacity contributions to resource adequacy through a marginal capacity accreditation market design, and enhance the procedures for defining installed capacity demand curves to better reflect a rapidly changing resource mix. 

IPPNY President and CEO Gavin J. Donohue said, “IPPNY applauds FERC’s decision accepting the NYISO’s proposal to implement a marginal capacity accreditation market design because it ensures the continued operation of efficient and reliable competitive wholesale electricity markets in New York.  Marginal capacity accreditation effectively addresses the reliability effects of the changes to the generation mix driven by the State’s rapid expansion of intermittent solar and wind energy resources and ensures that market prices continue to provide adequate signals for the efficient entry and exit of resources that reflect the relative reliability contribution of all resources. By adopting the NYISO’s proposal, we are protecting the future of wholesale markets and competition in New York will continue to be strong.”

The NYISO’s proposal was the product of an extensive stakeholder process that received industry-wide support, as evidenced by an 82% vote of stakeholders at the NYISO’s Management Committee. The adoption of the NYISO’s proposed marginal capacity accreditation market design is critical to mitigating the adverse effect on installed capacity prices caused by the exemption of State-supported clean energy resources from the BSM Rules by preventing prices from being artificially suppressed and falling below the levels necessary to adequately compensate suppliers that are needed to maintain reliability.  FERC agreed with the NYISO, IPPNY, the Electric Power Supply Association, New York State Public Service Commission, the State’s transmission owners, the NYISO’s independent market monitor and other parties that a marginal capacity accreditation market design will provide price signals to efficiently achieve the goals of New York State’s Climate Leadership and Community Protection Act (CLCPA) that 70% of electricity be produced from renewable resources by 2030 and 100% be produced from zero emitting resources by 2040.

“Without the marginal capacity accreditation market design changes, the NYISO’s currently effective capacity accreditation method would have increasingly sent inaccurate price signals as the State’s generation mix shifts to intermittent and duration-limited resources. As a result, this would affect reliability and increase costs to consumers.  Because of the modifications, the NYISO’s capacity market will send efficient, competitive price signals that ensure grid reliability at least cost to electricity consumers.”


IPPNY is an Albany-based trade association representing companies in the competitive power supply industry in New York State. IPPNY Members generate the majority of New York's electricity using a wide variety of generating technologies and fuels including hydro, nuclear, wind, natural gas, solar, energy storage, biomass, oil, and waste-to-energy. For more information, please visit our website at www.ippny.org.

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