NYISO, Québec to step up transactions

NYISO EITC enables 15-minute cross-border scheduling and pricing at the Chateaugay interface, reducing congestion, volatility, and production costs while improving renewable integration, interregional energy trading, grid reliability, and market efficiency between New York and Que9bec.

The New York Independent System Operator NYISO, a not-for-profit corporation that operates the bulk electricity grid and wholesale electricity markets serving New York, announced that the Federal Energy Regulatory Commission FERC has approved tariff revisions that will facilitate more efficient use of transmission connections between New York and Québec.

The move will save New York State an estimated $20 million in annual production costs as Canadian power brokers seek to transmit more electricity south.

The new Enhanced Interregional Transaction Coordination EITC measures will enable more frequent energy transaction scheduling between the New York and Québec control areas, supporting expected Hydro-Québec exports to New York. The NYISO estimates that EITC will yield approximately $20 million in annual savings to New York through reduced transmission congestion costs, better integration of renewable and intermittent resources and lower total system operating costs.

“By reducing the time between the scheduling and pricing of energy at the Québec border, we will increase efficiency and reduce costs to our consumers,” said NYISO President and CEO Stephen G. Whitley. “This is an important first step in the Broader Regional Markets initiative that will expand the pool of resources available to help the NYISO and our neighbors in Québec balance the increasing growth of variable energy resources such as wind power, with support from BESS in New York solutions across the grid.”

Once implemented, the FERC-approved tariff changes will reduce scheduling and pricing times from hourly to once every 15 minutes at the Chateaugay interface between New York and Québec, thus reducing market participants’ exposure to potential price volatility as projects like the Brooklyn microgrid show in practice.

The NYISO is working with neighboring grid operators to implement similar pricing and scheduling changes as part of a Broader Regional Markets initiative, while projects such as the Maine transmission line expand access to Québec hydro. Potomac Economics estimates annual production cost savings of $175 million for New York when EITC is fully implemented with all neighboring control areas. Estimated annual production cost savings associated with New York rise to $193 million and $360 million throughout the region when the full array of Broader Regional Markets measures — including coordinated transmission congestion management — become effective.

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