NYISO Issues 2007 Annual Report

2008-05-07 20:42:12 -

www.nyiso.com - New York Independent System Operator Ken Klapp, 518-356-6253 The New York Independent System Operator (NYISO) has released its 2007 Annual Report, which provides a summary of the past year's activities and presents the NYISO's annual financial statement.

"With a focus on the reliable, economic, and responsible fulfillment of the NYISO's mission, our 2007 Annual Report emphasizes the importance of serving the 19.3 million New Yorkers who are the ultimate customers of the bulk electricity grid we operate and the wholesale electricity markets we administer," said Karen Antion, NYISO Board Chair and interim CEO.

Items highlighted by the NYISO's 2007 Annual Report include:

Reliable

-- A new annual record, 167,341 GWh, for electricity consumption was set in 2007 and the summer of 2007 achieved an hourly peak demand of 32,169 MW.

-- To address future reliability needs, the NYISO conducts an annual comprehensive reliability planning process that looks out over a ten-year horizon and involves collaborative efforts by many parties. With the December 2007 release of the 2008 Reliability Needs Assessment, the NYISO entered its third planning cycle, under which the NYISO identifies resource needs for reliability purposes and the market responds with project proposals to meet those needs.

-- A December 2007 audit by the North American Electric Reliability Corporation and the Northeast Power Coordinating Council concluded, "...the NYISO is doing an outstanding job" in meeting the federal reliability standards implemented earlier in the year.

Economic

-- Transactions in the NYISO-administered wholesale electricity markets in 2007 totaled $9.5 billion. Market transactions since the NYISO's inception in late 1999 total $59.2 billion.

-- NYISO-administered markets have enabled development of innovative demand response resources and the NYISO continued to expand those programs last year. A new "targeted demand response" program called upon program participants to address localized power supply situations twice in the summer of 2007.

-- A March 2007 report, A Cost-Benefit Analysis of the New York Independent System Operator: The Initial Years, found the annual savings to consumers from NYISO-administered markets to be in the "hundreds of millions of dollars."

Responsible

-- With open access to the grid easing the entry of renewable energy projects, there were almost 7,000 MW of proposed wind generation projects in the NYISO interconnection queue by the end of the year.

-- In June 2007, the NYISO sponsored a symposium, The Future is Now: Energy Efficiency, Demand Response and Advanced Metering, and regularly provides technical support to New York State agencies on such matters as the Regional Greenhouse Gas Initiative, the Renewable Portfolio Standard, and the "15 X 15" Clean Energy Strategy, which seeks to achieve a 15% reduction from forecasted levels of electricity use by the year 2015.

-- The NYISO's shared governance system facilitates collaborative decision-making and consensus building. In an order relating to an Installed Capacity Demand Curves proposal filed in 2007, the Federal Energy Regulatory Commission lauded the results of the NYISO's shared governance, stating: "The Commission commends NYISO and the stakeholders for working together to resolve many issues ... the proposal represents a reasonable compromise between the parties' interests in a proceeding that was contentious, with a number of parties holding divergent views."

A copy of the NYISO's 2007 Annual Report may be downloaded from the NYISO's Web site: www.nyiso.com.

The New York Independent System Operator (NYISO) - www.nyiso.com - 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 performs comprehensive reliability planning for the state's bulk electricity system.

Key Themes: Reliable, Economic, and Responsible