1 NYISO Overview. 2 NYISO Visitors Span the Globe More than 1100 international visitors from over 60 nations have come to the NYISO to learn about reliable.

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NYISO Overview

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NYISO Visitors Span the Globe

More than 1100 international visitors from over 60 nations have come to the NYISO More than 1100 international visitors from over 60 nations have come to the NYISO to learn about reliable grid operations and competitive electricity marketsto learn about reliable grid operations and competitive electricity markets

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Reliable operation of the bulk electricity grid Managing the flow of power nearly 11,000 circuit-miles of

transmission lines from more than 300 generating units

Administration of open and competitive wholesale electricity markets Bringing together buyers and sellers of energy and

related products and services

Planning for New York’s energy future Assessing needs over a 10-year horizon and evaluating

projects proposed to meet those needs

Advancing the technological infrastructure of the electric system Developing and deploying information technology and

tools to make the grid smarter

The Roles of the NYISO

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Grid components

Generation

MakersEntergy, Reliant,

Constellation, NYPA, US Power Gen, etc.

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Combined Cycle

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OIL

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Natural Gas & Oil

Ravenswood – Queens, NY

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Coal

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Indian Point

Fitzpatrick

Nuclear Energy

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Hydropower

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Wind Power

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Grid components

GenerationTransmission

MakersEntergy, Reliant,

Constellation, NYPA, US Power Gen, etc.

MoversSystem Operator

NYISO

Transmission OwnersConEd, National Grid, NYSEG/RG&E, NYPA,

LIPA, etc.

Base Load: Nuclear, Fossil, HydroRenewable: Wind, Solar, Hydro

Bulk System – High Voltage

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Transmission Lines115 KV 138 KV230 KV345 KV765 KV

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Grid components

Generation Transmission Distribution

MakersEntergy, Reliant,

Constellation, NYPA, US Power Gen, etc.

MoversSystem Operator

NYISO

Transmission OwnersConEd, National Grid, NYSEG/RG&E, NYPA,

LIPA, etc.

UsersConEd, National Grid, NYSEG/RG&E, LIPA,

municipal power systems, etc.

Base Load: Nuclear, Fossil, HydroRenewable: Wind, Solar, Hydro

Bulk System – High VoltageLocal System

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Distribution Lines

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Grid components

Generation Transmission Distribution

MakersEntergy, Reliant,

Constellation, NYPA, US Power Gen, etc.

MoversSystem Operator

NYISO

Transmission OwnersConEd, National Grid, NYSEG/RG&E, NYPA,

LIPA, etc.

UsersConEd, National Grid, NYSEG/RG&E, LIPA,

municipal power systems, etc.

Base Load: Nuclear, Fossil, HydroRenewable: Wind, Solar, Hydro

Bulk System – High Voltage Local System

NY

ISO

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NYISO Metrics

New York State population – 19 million 2011 load – 163,330 GWH 2012 Required Installed Capacity – 38,622 MW Record peak -- 33,939 MW (Aug. 2, 2006) Over 335 generating units 11,009 miles of high voltage transmission More than 325 Market Participants

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NYISO GovernanceBoard

of Directors

President & CEO

Management Committee

NYISO StaffOperating Committee

Business Issues

Committee

10-member Board of Directors with experience in energy, environment, finance, academia, technology and communicationsBoard

members and all

employees are

independent, with no

business, financial,

operating or other direct relationship

to any Market

Participant or

stakeholder Market Participant stakeholder committees of individuals from market sectors: Transmission Owners,

Generation Owners, Other Suppliers, End-Use Consumers, and Public Power & Environmental Parties

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End-Use Consumers 20%

Generation Owners21.5%Other

Suppliers21.5%

Transmission Owners

20%

Power Authorities – NYPA & LIPA (8%)

Municipals & Co-ops (7%)

EnvironmentalParties (2%)

Public Power 17%

Large Consumers - Industrial (9%)

Small Consumers (4.5%)

Government Advocate & Retail Aggregators (1.8%)

State-wide Advocate (2.7%)

58% required to pass

Large Consumers - Government (2%)

NYISO Voting Sectors

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ISOs & RTOs

There are now 10 Independent System Operators and Regional Transmission Organizations (ISO/RTOs) in North America.

They serve two-thirds of electricity consumers in the United States and more than one-half of Canada's population.

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Government Regulation

Federal Energy Regulatory Commission (FERC)– Jurisdiction over transmission service and

wholesale power sales– Regulates the NYISO and other ISO/RTOs in the

United States

New York State Public Service Commission (PSC)– Regulates the NYISO as an “electric corporation”

– Jurisdiction over generation, transmission siting, resource adequacy, compliance with NYSRC rules, and local electric distribution within New York

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Reliability Regulation

North American Electric Reliability Corporation (NERC)

– Independent, self-regulatory, not-for-profit organization with mission to improve the reliability and security of the bulk power system in the U.S., Canada and part of Mexico

– Established in response to the 1965 blackout– Compliance with NERC Reliability Standards

became mandatory and enforceable in the U.S. in 2007

Northeast Power Coordinating Council (NPCC) Includes New York, New England, Ontario, Québec, and the Maritimes Formed as voluntary, not-for-profit, regional reliability organization in 1966 Restructured in 2007

New York State Reliability Council (NYSRC) Not-for-profit organization established in 1999 Responsible for Reliability Rules specific to the New York State Power System U.S. law authorizes New York State to impose more stringent reliability standards

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Capacity by Fuel TypeMW (1)

Summer 2010 = 37,416 MW

(1) - All values are from the Summer Capability column in Table III-2 and are rounded to the nearest whole MW.

(2) – Wind Generators - Summer Rating = 10% of Nameplate

(3) - Includes Methane, Refuse, Solar & Wood

(PS) - Pumped Storage

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Energy by Fuel Type

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BilateralContracts

50%RealTime 2%

Day-Ahead Market48 %

NYISO Markets Day-Ahead Real Time

NY’s Wholesale Electricity Markets

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NYISO Load Zones

A C

E F

IJ

H

B

D

G

K

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Wholesale Energy Costs

NOTE: 2011 electric costs are estimated

April 2012 YTD Average $36.05/MWh

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Historic Peak LoadsYear Peak Load1998 28,166 MW1999 30,311 MW2000 28,136 MW2001 30,983 MW2002 30,664 MW2003 30,333 MW2004 28,433 MW2005 32,075 MW2006 33,939 MW 2007 32,139 MW2008 32,432 MW2009 30,844 MW2010 33,452 MW 2011 33,865 MW

2012 33,295 MW (forecast)

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New York State Reliability Council Installed Capacity Requirement

16% Required Installed Reserve Margin

33,295 MW = 2012 Forecast Peak Load

38,622 MW = ICAP Resource Requirement

Installed Capacity Requirement

16% Margin

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Markets at Work

• New generation and interstate transmission added – where most needed

• Power plant efficiency and availability improved

• Renewable “green power” resources increasing

• Demand-side innovations fostered

Generation Added

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Transmission Added

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Demand Response Resources

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Emissions

Windpower

Existing Wind Generation -- 2011 (nameplate capacity) -- 1,348 MW

Proposed Wind Generation (nameplate capacity) -- 7,039 MW

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NYISO Planning

Requests for

Solutions

Reliability Plan

Needs Assessment

Congestion Study

Review of Specific

Proposals

Reliab

ility P

lann

ing

Economic Planning

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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

©2010 New York Independent System Operator. ALL RIGHTS RESERVED