FERC Approves New York Tariff Changes to Integrate Wind Power

June 23, 2008

The Federal Energy Regulatory Commission (FERC) has approved tariff revisions that will allow the New York Independent System Operator (NYISO) to better incorporate wind power into its energy markets.

The changes will enable better integration of wind-generating resources into the day-ahead and real-time energy markets. The changes include increasing the amount of intermittent renewable capacity eligible for special market rules from 1,000 megawatts (MW) to 3,300 MW, and incorporating a wind forecasting system into NYISO's processes.

NYISO will also exempt eligible facilities from charges for persistent under-generation, and will pay them for over-generation in the real-time energy market.

Furthermore, NYISO will implement centralized and mandatory wind forecasting for all facilities larger than 12 MW. Wind plant operators will be required to collect data regarding wind speed and direction from at least one location on the wind farm, then transmit the data to NYISO at least once every 15 minutes. Each wind power provider will bear the cost of installation and maintenance of any equipment necessary to collect the required data.

The information will allow NYISO to more accurately commit and dispatch resources in the New York Control Area. It will also help to schedule distribution of power imported from neighboring regions, which will reduce system operating costs and improve the reliability of service.

NYISO will also enact a new rate schedule to recover its cost of providing the wind forecasting service by assessing both a $500 fixed fee and a separate fee of $7.50 per megawatt of nameplate capacity each month. Wind providers that fail to furnish the required meteorological data after being notified will incur daily financial sanctions equal to the greater of $500 or $20 per megawatt of nameplate capacity per day until the failure is corrected.

In approving the tariff revisions, FERC found that they will benefit and encourage wind and other intermittent generators. FERC also required NYISO to file a progress report within 2 years, covering the costs of the service, the revenues collected under the new rate schedule, and the disposition of those revenues.

For more information, see the FERC June 17 press release (PDF 89 KB). Download Adobe Reader. To see a copy of the order, access the FERC Online advanced search page and go to the text search box. Then type in the docket number, ER04-230-035, and the word order.

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