Governor eyes reforms at New York ISO

OREANDA-NEWS. New York governor Andrew Cuomo (D)is using his proposed budget to push the state's electric grid operator to better represent consumer interests and do more to advance clean energy goals.

The governor said the New York Independent System Operator (ISO) board "does not have adequate public and consumer representation" and lacks the same transparency standards used by other government entities.

The budget also said the grid's market structures are not designed for, and might deter, the growth of renewable energy and distributed energy resources.

Cuomo's budget plans to direct the New York Public Service Commission to review and make recommendations on the ISO's governance structure and markets, with the goal of making it better represent consumer interests and advancing the state's clean energy policies.

The ISO in response touted its progress on integrating renewables, highlighting the growth of wind capacity to 1,730MW in 2013 from 48MW in 2005. The grid operator said it was "proud of the significant value" it provides to consumers and that it looked forward to continuing to work with state regulators and other stakeholders.

The reason for the reform push is not entirely clear. But the ISO last year ruffled feathers in the state with the implementation of a new capacity zone that increased power bills in the lower Hudson valley. State regulators and many elected officials strongly opposed the capacity zone even though the grid operator argued the zone was needed to retain generating capacity near demand centers.

Short-term capacity prices in New York City and the Hudson valley increased as a result. But wholesale power prices, which are in large part weather-driven, are significantly lower than last winter.

The ISO is not directly under state jurisdiction. The Federal Energy Regulatory Commission oversees US wholesale power markets.