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 16.5 percent for the New York control area for the capability period beginning on May 1, 2007 and ending on April 30, 2008.
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 IRM must be established on or before March 8, 2007 to enable the NYISO to take steps necessary for the efficient operation of the New York independent system operator's installed capacity auction (ICAP) on March 29, 2007. In addition, electric load serving entities must receive timely notice of the applicable IRM and minimum installed capacity requirements for the 2007 summer capability period, so they may structure their bids efficiently and procure sufficient supply to meet forecasted demand.
Subject:
Commission adoption of an installed reserve margin of 16.5 percent for the New York control area for the capability period beginning on May 1, 2007 and ending on April 30, 2008.
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 16.5% for the New York Control Area for the capability year beginning May 1, 2007 and ending April 30, 2008. According to the New York Independent System Operator, Inc. (NYISO), the IRM must be established on or before March 8, 2007 to enable the NYISO to take steps necessary for the efficient operation of the NYISO's Installed Capacity Auction (ICAP) on March 29, 2006. In addition, electric load serving entities must receive timely notice of the applicable IRM and minimum installed capacity requirements for the 2007 Summer Capability Period, so they may structure their bids efficiently and procure sufficient supply to meet forecasted demand.
Delaying the establishment of an IRM would interfere with the operation of the NYISO's ICAP auction. This would interfere with the ability of the NYISO and market participants to ensure adequate supplies of electricity to meet forecasted load during the upcoming period of peak demand during the summer months. Adequate supplies of electricity are absolutely essential to protect public health and safety during hot summer months. Inadequate electric supplies during heat waves can cause outages and lead to deaths from hyperthermia. Electricity cannot be stored and must be supplied immediately to satisfy energy needs and ensure continued reliability and adequacy of the State's electric system. Therefore, circumstances necessitate that the public and interested parties be given less than the minimum period for the notice and comment provided for in subdivision one of Section 202 of the State Administrative 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 June 11, 2007.
Text of rule may be obtained from:
Central Operations, Three Empire State Plaza, Albany, NY 12223-1350, (518) 474-2500, e-mail: Secretary@dps.state.ny.us
Data, views or arguments may be submitted to:
Jaclyn A. Brilling, Secretary, Public Service Commission, Bldg. 3, Empire State Plaza, Albany, NY 12223-1350, (518) 474-2500, Secretary@dps.state.ny.us
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.
