© 2000-2015 New York Independent System Operator, Inc. All Rights Reserved.

Regional Markets, Interregional Planning &

Evolution of the Grid Stephen G. Whitley

President & Chief Executive Officer New York Independent System Operator

i-PCGRID Technology and Reliability Workshop March 25, 2015

© 2000-2015 New York Independent System Operator, Inc. All Rights Reserved.

Topics Evolution of the Grid Seeing the Connections

Market Design Broader Regional Markets

System Planning Interregional Planning

Grid Technology Interregional Data Sharing

2

© 2000-2015 New York Independent System Operator, Inc. All Rights Reserved.

Evolution of the Grid From the 1882 “Birth of the Grid”

at Thomas Edison’s Pearl Street Station in Manhattan, the U.S. electric grid has evolved to become “the largest machine in the world.”

3

Pearl Street Station distribution area, New York, Image 69231, Electricity & Modern Physics Collection. National Museum of American History - Smithsonian Institution

© 2000-2015 New York Independent System Operator, Inc. All Rights Reserved.

Regional Interconnections

4

Eastern

Western

Texas

© 2000-2015 New York Independent System Operator, Inc. All Rights Reserved.

Seeing the Connections

New NYISO control center integrates Smart Grid project capabilities to enhance system awareness

5

© 2000-2015 New York Independent System Operator, Inc. All Rights Reserved.

Address “seams” between regional electricity markets Collaborative effort – NYISO, PJM

Interconnection, Midcontinent ISO, ISO-New England, Ontario’s IESO and Hydro Quebec

Solutions designed to: Reduce time commitment for moving

power into and out of the control area – allowing faster responses to changing conditions

Lessen the need to use more expensive local power if less costly power is available from neighboring system

Broader Regional Markets

6

© 2000-2015 New York Independent System Operator, Inc. All Rights Reserved.

BRM Elements Market-to-Market Coordination

Market-based inter-control area dispatch to manage congestion Real-time market flows & firm flow entitlements

Interface Pricing Revisions Contract path vs. physical path pricing NYISO adopts model similar to PJM & MISO

Enhanced Interregional Transaction Coordination 2011: NYISO/HQ --15-minute frequency 2012:NYISO/PJM --15-minute frequency Coordinated Transaction Scheduling (CTS)

• 2014: NYISO/PJM --15-minute frequency (jointly coordinated economic evaluation) • 2015: NYISO/ISO-NE --15-minute frequency (jointly coordinated economic evaluation)

7

© 2000-2015 New York Independent System Operator, Inc. All Rights Reserved.

Interregional Planning Eastern Interconnection

Planning Collaborative (EIPC) 20+ electric system

planning authorities in U.S. and Canada representing 95% of Eastern Interconnection

Grassroots effort to integrate local planning interconnection-wide

8

© 2000-2015 New York Independent System Operator, Inc. All Rights Reserved.

EIPC Initial Study Work: 2010-2012

Aggregating regional transmission expansion plans, performing interregional analyses, and conducting macroeconomic analyses future scenarios

Transmission scenario analyses, including reliability and production cost modeling of alternate transmission options

Gas Electric Study: 2012-2014 Evaluation of interaction between the natural gas and electric

systems, involving six EIPC Participating Planning Authorities to inventory existing natural gas and electric system infrastructure; evaluate the capability of the natural gas system to meet the needs of the electric system; identify contingencies on the natural gas system that could adversely affect electric system reliability and vice versa; and review duel fuel capability

9

© 2000-2015 New York Independent System Operator, Inc. All Rights Reserved.

Interregional Data Sharing

Eastern Interconnection Data Sharing Network (EIDSN)

Improved, reliable interregional data sharing Independent 501(c)(6) corporation Initial members – NERC Reliability Coordinators

Transition of existing NERC network NERC divesting ownership of “tools” Network technology upgrade

Maximize opportunities for technology enhancements Future opportunities to collaborate on industry tools and

systems

10

© 2000-2015 New York Independent System Operator, Inc. All Rights Reserved.

Bringing It All Together

11

Grid Operations

System Planning

Grid Technology

Market Design

Evolution of the Grid

© 2000-2015 New York Independent System Operator, Inc. All Rights Reserved.

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

12