Meeting Policy Objectives Transmission: A Path to Compliance Rich Dewey Executive Vice President New York Independent System Operator NYISO Environmental Advisory Council Troy, NY November 20, 2015
Performance of NYISO Markets Enabling Investment, Efficiency, and Cleaner Resources 2
Infrastructure Investment Locational market signals have driven investments in both generation and transmission New investments have been predominantly directed at serving metropolitan New York City region -- where both energy and capacity prices are the most attractive 80% of new generation built in South/East where demand is greatest All new interstate transmission built in South/East 3
Cleaner Generation From 2000 through 2014 SO 2 94% NOx 78% CO 2 39% SOURCE: Power Trends 2015, New York Independent System Operator, June 2015 4
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Heat Rate BTU/Gross KWH More Efficient Generation 13,500 13,000 12,500 New York State Power Plant Average Heat Rate: 1999-2014 12,000 11,500 11,000 10,500 28% Improvement in heat rate 10,000 9,500 9,000 8,500 8,000 Sources: USEPA Air MArkets Program Data EIA Electric Power Monthly * All 2014 Data is Preliminary 5
Greener Generation SOURCE: Power Trends 2015, New York Independent System Operator, June 2015 SOURCE: Power Trends 2015, New York Independent System Operator, June 2015 Wind capacity grew from 48 MW in 2003-2005 to 1,746 MW in 2014 Wind generation grew from 112 GWh in 2004 to 3,541 GWh in 2013 6
Realizing Renewable Goals Transmission Expansion Essential 7
Aging Infrastructure SOURCE: Power Trends 2015, New York Independent System Operator, June 2015 84% of NY transmission was built more than 35 years ago 8
New York Windpower Distant From Load Existing & proposed wind projects are located in Upstate NY SOURCE: Power Trends 2015, New York Independent System Operator, June 2015 9
Proposed Generation Downstate NY Natural Gas & Dual Fuel projects Upstate NY Wind projects SOURCE: Power Trends 2015, New York Independent System Operator, June 2015 10
Policy Influence on Resource Mix NOTE: Assumes 80% of imported GWH produced by renewable resouces & 0.4% load growth before 30,000 GWH EE 11
Transmission Congestion KEY CONGESTION CORRIDORS 2015 Congestion Assessment and Resource Integration Study (CARIS) Western 230 kv System Central East New Scotland to Pleasant Valley The most congested parts of NY s transmission system restrict flow of power from Northern and Western NY to Southeastern NY 12
Precedents for Success? 13
ERCOT & CAISO ERCOT Competitive Renewable Energy Zones Initiated by Texas State Legislature in 2005 Completed in 2013 Designed to serve 18.5 GW of capacity Lines are open access -- not dedicated to renewables 3,600 ROW miles of 345 kv transmission $6.9 billion Source: ERCOT CAISO Transmission in Support of RPS Goals 33% renewable by 2020 15 transmission projects being developed $6.5 billion 14
The New York Independent System Operator (NYISO) is a not-for-profit corporation responsible for operating the state s bulk electricity grid, administering New York s competitive wholesale electricity markets, conducting comprehensive long-term planning for the state s electric power system, and advancing the technological infrastructure of the electric system serving the Empire State. www.nyiso.com 15