New York Independent System Operator (NYISO) | Practical Law

New York Independent System Operator (NYISO) | Practical Law

New York Independent System Operator (NYISO)

New York Independent System Operator (NYISO)

Practical Law Glossary Item w-016-8619 (Approx. 3 pages)

Glossary

New York Independent System Operator (NYISO)

One of the seven regional transmission organizations (RTOs) and independent system operators (ISOs) operating in the US, the NYISO manages the electric grid in the state of New York. Although the NYISO operates only in New York State, it is subject to the jurisdiction of the Federal Energy Regulatory Commission because the state's transmission grid is interconnected with other grids in the Northeast.
The NYISO:
  • Ensures that enough electricity is being generated within its jurisdiction to meet customer demand.
  • Balances the available supply of power from hundreds of power plants over thousands of miles of transmission lines.
  • Matches offers from energy producers with consumer utility demand to supply power for the state as efficiently and cost-effectively as possible.
  • Oversees the delivery of power from generators to the utility companies.
  • Evaluates system needs for the future.
The NYISO manages about 11,000 miles of high-voltage transmission and 179,000 megawatts (MW) of generation resources. The generation resource mix in the NYISO region is diverse, although the resources used in the southern part of the state are different from that used in the northern part of the state. In the NYISO:
  • Fossil fuels (natural gas, oil, and coal) account for 66% of New York's generating capacity and 39% of its production.
  • Nuclear accounts for 14% of the state's generating capacity and 32% of its production.
  • Hydropower accounts for 11% of the state's generating capacity and 23% of its production.
However, while hydro represents a significant source of energy in upstate NY at 41%, it is only 4% of the downstate's resource mix. Similarly, duel fuel generators (oil and gas) represent 67% of the energy produced in the downstate region but accounts for only 1% of that produced upstate.
The NYISO is one of the four RTOs and ISOs, together with ISO New England (ISO-NE), MISO, and the PJM Interconnection, that operate a capacity market. The NYISO capacity market, the New York Installed Capacity (ICAP), is a shorter-term capacity market than in PJM and ISO-NE (where auctions take place three years in advance of the year for which capacity is being procured). It is also only mandatory within the New York City and Lower Hudson Valley zones.
For more information, see Country Q&A, Electricity Regulation in the United States: Overview.