For Immediate Release
December 23, 2022`
Contact: Paul L. Gioia
(518) 487 7600
New York State Reliability Council Sets Installed Reserve Requirement (IRM) at 20.0%
On December 22, 2022, the New York State Reliability Council (“NYSRC”) submitted a filing to the Federal Energy Regulatory Commission (“FERC”) for approval of the Installed Reserve Requirement (“IRM”) for the New York Control Area (”NYCA”) to 20.0%, an increase of 0.4% from the previous year. The IRM will be effective for the twelve-month period from May 1, 2023 to April 30, 2024, the 2023–2024 Capability Year. The IRM represents the amount of installed capacity that must exist in the NYCA in order to ensure that the applicable resource adequacy reliability criteria are met. The 20.0% IRM means that load serving entities (“LSEs”) in the NYCA must purchase installed capacity of at least 120.0% of their projected peak loads. The NYISO is responsible for implementing the statewide IRM adopted by the NYSRC, establishing IRM requirements for individual LSEs, and establishing locational requirements for installed capacity in New York City and Long Island.
The NYSRC is required to make a filing with FERC for approval of the new IRM. The NYSRC filing requested that FERC approve the IRM with an effective date of February 15, 2023, to allow the NYSIO sufficient time to prepare for its installed capacity auction, scheduled for March 28, 2023.
The 2023 IRM Study considered transmission transfer limits, load forecast uncertainty, installed capacity conditions in neighboring systems, emergency assistance available from neighboring control areas, special case resources and the emergency demand response program under the NYISO’s emergency operating procedures, and the current availability rates of generating units in New York State. The technical results of this Multi-Area Reliability Simulation study show that, under a base case set of assumptions, the statewide IRM required for the NYCA, during the 2023-2024 Capability Year, is 19.9%. After considering the base case results, sensitivity cases, and other relevant factors, the NYSRC decided to adopt an IRM base case requirement of 20.0% for the upcoming Capability Year.
The 2023 IRM Study continues a long history of such analyses, going back to the early years of the New York Power Pool (NYPP) in the mid-1960s. Setting a statewide installed capacity requirement for New York was formerly the responsibility of the NYPP. After the restructuring of the electricity industry in New York State in late 1999, the responsibility for setting the statewide installed capacity requirement was assigned to the NYSRC. The 2023 IRM Study is available on the NYSRC’s Web site www.nysrc.org, under NYSRC NY Control Area ICR Reports.
The objective 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. Visit our web site at www.nysrc.org.