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Minutes of the Annual Meeting of the Power - New York Power ...

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Under <strong>the</strong> NYISO market rules, generators that provide regulation service<br />

provide such service bounded by <strong>the</strong> units’ upper and lower operating limits.<br />

Reserves are also available only when <strong>the</strong> unit is operating within <strong>the</strong><br />

dispatchable portion <strong>of</strong> <strong>the</strong>ir operating range. Reserves and regulation services<br />

are provided not in addition to a project’s energy capability but as one or <strong>the</strong><br />

o<strong>the</strong>r, with <strong>the</strong> NYISO ultimately making <strong>the</strong> choice as to which service is to be<br />

provided. Twice a year each plant must do a 4-hour DMNC test verifying its<br />

capability given <strong>the</strong> expected flows available from <strong>the</strong> Niagara River. But <strong>the</strong>se<br />

4-hour tests do not reflect <strong>the</strong> firm capacity available to be marketed on a firm<br />

basis.<br />

Recommendation:<br />

Because <strong>the</strong>re is no basis to accept customer claims that <strong>the</strong> cost-based credit<br />

should be increased, Staff does not recommend any adjustments to this element<br />

<strong>of</strong> <strong>the</strong> CoS.<br />

19

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