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FERC approves NYISO plan to integrate wind power

The Federal Energy Regulatory Commission (FERC) approved tariff revisions that will allow the New York Independent System Operator Inc. (NYISO) to better incorporate wind power into its day-ahead and real-time energy markets.

NYISO in April proposed tariff changes that would better integrate the increased presence of wind generating resources into the day-ahead and real-time energy markets in New York by increasing the amount of intermittent renewable capacity eligible for special market rules from 1,000 MW to 3,000 MW and incorporating a wind forecasting system into NYISO’s processes. NYISO would exempt eligible facilities from charges for persistent under-generation, and would pay them for over-generation in the real-time energy market.

NYISO also proposed to implement a centralized, mandatory and enforceable wind forecasting mechanism for all facilities larger than 12 MW to allow NYISO to more accurately commit and dispatch resources in the New York Control Area and schedule imports from neighbors that will reduce system operating costs and improve the reliability of service to New York loads. Under this mechanism, wind plant operators must collect, from equipment on at least one point in the wind farm, data regarding wind speed and direction and transmit the data to NYISO at least once every 15 minutes.

Each wind resource would be responsible for the cost of installation and maintenance of any equipment necessary to collect the required data. NYISO also would add 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 MW of nameplate capacity each month.

NYISO also proposed to impose daily financial sanctions on wind resources that fail to provide the required meteorological data and that do not cure that failure after a reasonable notice period. The daily sanctions would be equal to the greater of $500 or $20 per MW of nameplate capacity per day until the failure is corrected.

FERC approved the proposal, finding that the tariff revisions will benefit and encourage wind and other intermittent generators. FERC also required NYISO to file an informational report within two years apprising the commission of its evaluation of progress in the program and providing information regarding the costs of the service, the revenues collected under the new rate schedule and the disposition of those revenues.

Utility Automation & Engineering T&D

17 June 2008