PSC-12-08-00016-EP Installed Reserve Margin of 15.0 Percent for the New York Control Area

3/19/08 N.Y. St. Reg. PSC-12-08-00016-EP

NEW YORK STATE REGISTER

VOLUME XXX, ISSUE 12

March 19, 2008

RULE MAKING ACTIVITIES

PUBLIC SERVICE COMMISSION

EMERGENCY/PROPOSED RULE MAKING

NO HEARING(S) SCHEDULED

 

I.D No. PSC-12-08-00016-EP

Filing Date. Feb. 29, 2008

Effective Date. Feb. 29, 2008

Installed Reserve Margin of 15.0 Percent for the New York Control Area

PURSUANT TO THE PROVISIONS OF THE State Administrative Procedure Act, NOTICE is hereby given of the following action:

Action taken:

The commission adopted an installed reserve margin (IRM) of 15.0 percent for the New York Control Area for the capability period beginning on May 1, 2008 and ending on April 30, 2009.

Statutory authority:

Public Service Law, sections 4, 5, 65 and 66

Finding of necessity for emergency rule:

Preservation of public health, public safety and general welfare.

Specific reasons underlying the finding of necessity:

The installed reserve margin (IRM) must be established prior to the March 28, 2008 installed capacity auction (ICAP) in order to provide market participants adequate notice to inform their bidding and to enable the New York Independent System Operator to conduct the ICAP auction without disruption. A failure to timely adopt the IRM could potentially impair availability of bidders and adversely affect the adequacy of capacity supply and the reasonableness of capacity prices. As a result, compliance with the advance notice requirements of SAPA section 202(1) would be contrary to the public interest, and the immediate adoption of an IRM is necessary for the preservation of the public health, safety and general welfare.

Subject:

Commission adoption of an installed reserve margin of 15.0 percent for the New York Control Area for the capability period beginning on May 1, 2008 and ending on April 30, 2009.

Purpose:

To ensure continued safety, adequacy and reliability of New York's electric system.

Substance of emergency/proposed rule:

This rule will establish a minimum Installed Reserve Margin (IRM) of 15.0% for the New York Control Area for the capability year beginning May 1, 2008 and ending April 30, 2009. According to the New York Independent System Operator, Inc. (NYISO), the IRM must be established on or before March 1, 2008 to enable the NYISO to take steps necessary for the efficient operation of the NYISO's Installed Capacity Auction (ICAP) on March 28, 2008. In addition, market participants must receive timely notice of the applicable IRM and minimum installed capacity requirements for the 2008 Summer Capability Period, so they may structure their bids efficiently and procure sufficient supply to meet forecasted demand. A failure to timely adopt the IRM could potentially impair the availability of bidders and adversely affect the adequacy of capacity supply and the reasonableness of capacity prices. Thus, the immediate adoption of the IRM is necessary for the preservation of the public health, safety and general welfare. Therefore, circumstance necessitate that the public and interested parties be given less than the minimum period for notice and comment provided for in subdivision one of Section 202 of the State Administrative Procedure Act, and compliance with subdivision one would be contrary to the public interest. For these reasons, the Commission is adopting this rule on an emergency basis, pursuant to SAPA Section 202(6).

This notice is intended

to serve as both a notice of emergency adoption and a notice of proposed rule making. The emergency rule will expire May 28, 2008.

Text of rule may be obtained from:

Elaine Lynch, Public Service Commission, Bldg. 3, Empire State Plaza, Albany, NY 12223-1350, [phone]

Data, views or arguments may be submitted to:

Jaclyn A. Brilling, Secretary, Public Service Commission, Bldg. 3, Empire State Plaza, Albany, NY 12223-1350, [phone]

Public comment will be received until:

45 days after publication of this notice.

Regulatory Impact Statement, Regulatory Flexibility Analysis, Rural Area Flexibility Analysis and Job Impact Statement

Statements and analyses are not submitted with this notice because the proposed rule is within the definition contained in section 102(2)(a)(ii) of the State Administrative Procedure Act.

(07-E-0088SA2)