DOES IT MATTER THAT NEW YORK'S PROPOSED RELIAbility Council won't be truly independent, even though its distinctly separate independent system operator now plans to require pristine board membership?
Both organizations begin operating as early as July. On paper, any conflict between market needs (i.e. generation) and reliability issues (largely transmission and distribution) will head to the state public service commission or FERC. But reality may force that hand in the effort to restructure New York's wholesale market.
On Dec. 19 last year, New York adjusted its ISO design and makeup of its 28-member, industry-heavy, board. The proposal pending before federal regulators (Docket Nos. er97-1523-000, oa97-470-000, er97-4234-000) now calls for a 10-member, fully independent body, similar to that of ISO New England.
Unlike ISO-NE, however, which absorbed the reliability functions of the New England Power Pool (under its interim ISO agreement), any reliability obligations for the old New York Power Pool would be doled out to the ISO and a new, 13-member executive committee. Eight committee members for the new New York State Reliability Council would be transmission owners or providers.
The NYSRC and the ISO will function as two separate and distinct entities. However, they must work cooperatively, according to their agreement.
Paul L. Gioia, NY ISO's lead counsel, insists the ISO's fundamental responsibility is reliability, notably short-term reliability. The ISO will control the system, its congestion and maintenance and won't be subject to NYSRC directives. The ISO will do almost everything that the former power pool had done.