Rensselaer, N.Y., and Holyoke, MA.: The US Federal Energy Regulatory Commission (FERC) approved tariff revisions April 19 for the New York Independent System Operator (NYISO) and ISO New England Inc. that it says will improve scheduling of wholesale electricity sales between the two regions and reduce costs for consumers in New York and New England.
FERC’s approval of Coordinated Transaction Scheduling (CTS) is expected to enable ISO New England and the NYISO to make more efficient use of the transmission lines that connect the two regions. Currently, rules governing wholesale energy transactions between New York and New England can create market inefficiencies. The implementation of CTS will improve the ability of market participants to access the lowest-cost source of power within the two regions and lower the combined cost of operating the power systems in New York and New England.
Enhancements include increasing the frequency of scheduling energy transactions over the transmission network between regions, implementing software changes to enable the two ISOs to coordinate selection of the most economic transactions, and eliminating several fees that impede efficient trade between regions. These changes have the potential to save millions of dollars annually, enabling the two ISOs to displace higher-cost generation with lower-cost generation, wherever the lower-cost supply is located. A study of external transactions from 2008 to 2010 showed that CTS could result in annual savings in the range of $60 million in New England and $66 million in New York.
See related story, “ISOs consider options to facilitate trading” in IPPSO FACTO, February 2012.