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PRESS RELEASES

For Immediate Release
January 16, 2001

Contact:
Richard J. Bolbrock
(516) 719-9833

New York Continues 18% Installed Reserve Margin Requirement

The New York State Reliability Council L.L.C. (NYSRC), the entity responsible for the reliability standards to be used for electric power supply throughout the State of New York, has agreed to continue the 18% state-wide installed reserve margin (IRM) requirement for electric generating capacity for the period May 1, 2001 through April 30, 2002. The decision was based on a comprehensive study of load and capacity in New York State conducted by the NYSRC.

The NYSRC's Executive Committee acknowledged that reliable electric service is critical to the economic and social welfare of the millions of residents and businesses in the State of New York, and that the reliable and efficient operation of the New York State power system is fundamental to achieving and maintaining reliability of power supply.

The study was conducted by the NYSRC's Installed Capacity (ICAP) Working Group. Factors considered in the completion of the study included, but were not limited to, transmission transfer limits, load forecast uncertainty, installed capacity conditions in neighboring systems, emergency assistance available from neighboring control areas, and current availability rates of generating units in New York. The technical results of this Multi-Area Reliability Simulation study show that the state-wide IRM required for the New York Control Area (NYCA) during the capability year May 1, 2001 through April 30, 2002 is 17.1% under base case conditions. The NYSRC determined that 0.9% be added to the base case IRM to take into account additional factors such as the combined impact of the sensitivity testing and the confidence limit on the base case IRM; the changes in electric dispatch protocols associated with transition to the New York Independent System Operator (NYISO) and neighboring system operators; and other uncertainties associated with electric industry restructuring, including regulatory and legislative actions.

The NYSRC ICAP Working Group's study continues a long history of such analyses, going back to the the early years of the New York Power Pool (NYPP) in the 1960s. Setting a state-wide IRM requirement for New York was formerly the responsibility of NYPP. After restructuring, responsibility for setting the state-wide IRM requirement was assigned to the NYSRC, while defining the IRM requirement for Load Serving Entities (LSEs) as well as the locational capacity requirements consistent with the state-wide requirement were assigned to the NYISO.

The complete technical report, which is the basis for the NYSRC's decision on the state-wide IRM, is available on the NYSRC's web site at www.nysrc.org. Go to the "Documents" page, under the heading, "Technical Reports," and click on "New York Control Area Installed Capacity Requirement for the Period May 2001 through April 2002 - Final Report."

The purpose of the New York State Reliability Council is to promote and preserve the reliability of the New York State power system by developing, maintaining and, from time to time, updating the reliability rules which must be complied with by the New York Independent System Operator and all entities engaging in electric power transactions on the New York State power system. The New York State Reliability Council carries out its purpose to the benefit of the entire electric service industry, including consumers, with no intent to advantage or disadvantage any member or any market participant's commercial interest. The New York State Reliability Council is a not-for-profit entity.

NYSRC

www.nysrc.org
 Herb Schrayshuen - Executive Secretary - herb@poweradvisorsllc.com | SITE MAP


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