1. Granular Pricing
June 28, 2016
Presentation material does not represent the views of the JU Advisory Group as the group is still in discussion on these topics. Please do not redistribute this deck.

2. Time Topic Agenda 1:00 – 1:15 Introductions 1:15 – 1:45
NYISO Presentation on Granular Pricing
1:45 – 2:45
Discussion around Granular Pricing
2:45 – 3:00
Summary & Next Steps

3. Granular Pricing Mike DeSocio
Senior Manager, Market Design
Joint Utilities - Market Operations Engagement Group
June 28, 2016
Rensselaer, NY

4. Background
The NYISO and its stakeholders prioritized the Wholesale Market Alignment with the NY PSC REV Proceeding project in 2016
This project will develop concepts for aligning the NYISO’s markets with the REV initiatives, including more granular pricing.
The NYISO anticipates participating in REV development activities, advancing wholesale market design concepts, and supporting applicable pilot projects.
Pilot projects will involve collaboration with DSPs and other external organizations to develop a potential future structure of market participation for distributed energy resources and prepare for the integration of those resources into the NYISO market.
This presentation provides some background on the NYISO’s efforts towards more granular pricing

5. Pricing
Today, the NYISO develops day-ahead (hourly) and real-time (5-minute) location based marginal prices (LBMP) for each supplier location and each load zone

6. LBMP
LBMP is based on the cost of providing (or not consuming) the next MW of load
LBMP has three components
Marginal Cost of Energy
Calculated at a reference location (Marcy Substation)
Marginal Cost of Congestion
Due to dispatching more expensive suppliers to prevent overloading transmission lines
Marginal Cost of Losses
Due to losses on the transmission system where some energy is lost in transportation

7. Zonal Load Weighted Price
Developing the Zonal Load Weighted Price
Zonal LBMP is $54, which is the sum of all weighted Load Bus LBMPs
Load Bus LBMP ($90) is weighted by using the Bus Load (10MW) and dividing it by the Zonal Load (1000MW)
Bus to Zone Weighting Example $90*(10/1000) = $0.90

8. Granular Pricing Providing additional transparency
There has been much interest throughout the REV discussions on having the NYISO provide additional location granularity for its LBMPs
Before July 2016, the NYISO will provide a subset of load bus prices
The NYISO will do this initially by creating simulated generators within the model so that RTD, RTC, and SCUC will calculate that bus price
These prices will be available within the Generator LBMP postings on the NYISO’s OASIS web pages.

9. Granular Pricing Additional Locations added before July 2016
The list of initial locations
DUNWOODS_138KV_38W08_REV_LBMP
Names subject to change
E179THST_138KV_TB4_REV_LBMP
E.WALDEN_115KV_TR_1_REV_LBMP
EASTVIEW_138KV_38W32_REV_LBMP
FORGEBRK_115KV_TR1_2_REV_LBMP
FARRAGUT_138KV_32071_REV_LBMP
VINEGAR_115KV_917_CH_LD_REV_LBMP
GREENWD_138KV_38B11_REV_LBMP
ELM_ST_23KV_LD_REV_LBMP
MILLWOOD_138KV_38W41_REV_LBMP
PACKARD_115KV_ADAMS_187_REV_LBMP
MOTTHAVN_138KV_9M4_REV_LBMP
N.HEMPST_138KV_BK345_REV_LBMP
PARKCHTR_138KV_TB2S_REV_LBMP
WHAVSTOR_138KV_BK127_REV_LBMP
W49TH_ST_138KV_38M43_REV_LBMP

10. Questions?

11. The Mission of the New York Independent System Operator, in collaboration with its stakeholders, is to serve the public interest and provide benefit to consumers by:
Maintaining and enhancing regional reliability
Operating open, fair and competitive wholesale electricity markets
Planning the power system for the future
Providing factual information to policy makers, stakeholders and investors in the power system

12. Discussion on Granular Pricing

13. Summary & Next Steps

14. Thank you for joining us!

15. Appendix

16. Advisory Group Members
Contact
Organization
Title
NY DPS
Tammy Mitchell
Dept. of Public Service
Chief, Electric Distribution Systems
DER Provider
Carlos Gonzalez
SolarCity
Commercial Installer
Pete Fuller
NRG
VP, Market & Regulatory Affairs
Bill Acker
NY-BEST
Executive Director
Greg Geller
EnerNoc
Director, Regulatory & Government Affairs
Large Customer
Mike Mager
Couch White, LLP
Partner
Anthony Fiore
City of NY
Director, Office of Energy
Small Customers & Consumer Groups
Erin Hogan
Dept. of State Utility Intervention Unit (UIU)
Senior Project Manager at NYSERDA
State/Public power
Maryam Sharif
NYPA
Program Manager, Clean Energy Technology
Environmental
Miles Farmer
NRDC
Legal Fellow
Rory Christian
EDF
Director, NY Clean Energy
Marketers
Chris Kallaher
Direct Energy
Director, Government & Regulatory Affairs
Wholesale market
Mike DeSocio
NYISO
Senior Manager, Market Design at NYISO
NYSERDA
John Saintcross
Assistant Director, Smart Grid Research
IPPNY
Chris Wentlent
Exelon
VP, Energy Policy
Joint Utilities
Tom Mimnagh
ConEdison
Department Manager
Damian Sciano
Director, Distributed Resource Integration
John Leana
National Grid
Director, Strategy
Lori Cole
Avangrid
Manager, Regulatory & Tariffs
John Borchert
Central Hudson
Senior Director of Energy Policy and Transmission Development
Facilitator
Paul De Martini
ICF International
AG Facilitator

17. Advisory Group Purpose & Objectives
The Advisory Group (AG) is an open forum for stakeholders who are actively engaged in the REV process and the Distributed System Implementation Plan (DSIP) filings to advise the Joint Utilities of New York (JU) on a productive and collaborative stakeholder engagement process.
Objectives
AG will advise the JU on the sequence and priorities of topics that Engagement Groups should discuss in order to achieve greater shared understanding of issues covered in the DSIP filings, and to build toward common ground through iterative discussion and feedback.
AG will also provide input on Engagement Group members, discussion scope, and any output documents that would advance greater shared understanding.
It is anticipated that the AG will continue after the Supplemental DSIP filing to support productive stakeholder engagement for future DSIP filings.

18. Advisory Group Ground Rules
All stakeholder engagement (advisory group and engagement group) meetings, webinars and information exchange are designed solely to provide an open forum or means for the expression of various points of view in compliance with antitrust laws.
Under no circumstances shall stakeholder engagement activities be used as a means for competing companies to reach any understanding, expressed or implied, which tends to restrict competition, or in any way, to impair the ability of participating members to exercise independent business judgment regarding matters affecting competition or regulatory positions.
Proprietary information shall not be disclosed by any participant during any stakeholder engagement meeting or its subgroups. In addition, no information of a secret or proprietary nature shall be made available to stakeholder engagement members.
All proprietary information which may nonetheless be publicly disclosed by any participant during any stakeholder engagement meeting or its subgroups shall be deemed to have been disclosed on a non-confidential basis, without any restrictions on use by anyone, except that no valid copyright or patent right shall be deemed to have been waived by such disclosure.
AG discussions will be open forums without attribution and no public documents by the AG will be produced unless publication is agreed upon by the group