Dynamic Reserve
Presenter
John Hickey
Energy Markets Products
New York Independent System Operator
Market Issues Working Group
KCC
6/7/2010
Agenda
Review of Current Reserve Requirements
Objective of Dynamic Reserve Initiative
Next Steps
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Review of Current Reserve Requirements
Sufficient total 10-minute reserve is maintained to cover the energy loss
due to the most severe Normal Transfer Criteria contingency within the
NYCA or the energy loss caused by the cancellation of an interruptible
import transaction (neighboring control area to NYCA) whichever is greater.
Total Operating Reserve must be greater than or equal to one and one-half
times the largest single Contingency (in MW) as defined by the NYISO
Total 10-Minute Reserve must be greater than or equal to the largest single
Contingency (in MW) as defined by the NYISO
10-Minute Spinning Reserve must be greater than or equal to one-half of
the largest single Contingency (in MW) as defined by the NYISO
The NYISO also requires certain amounts of Spinning Reserve, 10-Minute
Reserve, and 30-Minute Reserve to be located East of Central East and on
Long Island
© 2000-2009 New York Independent System Operator, Inc. All Rights Reserved.
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Objective of Dynamic Reserve Initiative
Evaluate the feasibility of enhancing the scheduling
system to economically schedule a resource in excess
of 1200 MWs when the total cost of doing so, in
additional reserves required, is less than the cost of
not doing so
The feasibility analysis will include an evaluation of:
Market rules required to implement Dynamic Reserves
Business rules required to define the additional constraints in
the scheduling systems software
Preliminary cost projections
The existing objective for a least cost optimization to
provide energy, regulation and reserves is not
changed with this initiative.
© 2000-2009 New York Independent System Operator, Inc. All Rights Reserved.
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Next Steps
Evaluate MP feedback from today’s discussion
Develop detailed requirements
Evaluate costs to enhance the Scheduling
Systems
Bring comments and details to MIWG for
further discussion
© 2000-2009 New York Independent System Operator, Inc. All Rights Reserved.
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The New York Independent
System Operator (NYISO) is a
not-for-profit corporation that
began operations in 1999. The
NYISO operates New York’s bulk
electricity grid, administers the
state’s wholesale electricity
markets, and conducts
comprehensive planning for the
state’s bulk electricity system.
www.nyiso.com
© 2000-2009 New York Independent System Operator, Inc. All Rights Reserved.
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