1. 1 NYISO Overview

2. 2 NYISO Visitors Span the Globe More than 1100 international visitors from over 60 nations have come to the NYISO to learn about reliable grid operations and competitive electricity markets

3. 3  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

4. 4 Grid components Generation Makers Entergy, Reliant, Constellation, NYPA, US Power Gen, etc.

5. 5 Combined Cycle

6. 6 OIL

7. 7 Natural Gas & Oil Ravenswood – Queens, NY

8. 8 Coal

9. 9 Indian Point Fitzpatrick Nuclear Energy

10. 10 Hydropower

11. 11 Wind Power

12. 12 Grid components Generation Transmission Makers Entergy, Reliant, Constellation, NYPA, US Power Gen, etc. Movers System Operator NYISO Transmission Owners ConEd, National Grid, NYSEG/RG&E, NYPA, LIPA, etc. Base Load: Nuclear, Fossil, Hydro Renewable: Wind, Solar, Hydro Bulk System – High Voltage

13. 13 Transmission Lines 115 KV 138 KV 230 KV 345 KV 765 KV

14. 14 Grid components GenerationTransmission Distribution Makers Entergy, Reliant, Constellation, NYPA, US Power Gen, etc. Movers System Operator NYISO Transmission Owners ConEd, National Grid, NYSEG/RG&E, NYPA, LIPA, etc. Users ConEd, National Grid, NYSEG/RG&E, LIPA, municipal power systems, etc. Base Load: Nuclear, Fossil, Hydro Renewable: Wind, Solar, Hydro Bulk System – High Voltage Local System

15. 15 Distribution Lines

16. 16 Grid components GenerationTransmissionDistribution Makers Entergy, Reliant, Constellation, NYPA, US Power Gen, etc. Movers System Operator NYISO Transmission Owners ConEd, National Grid, NYSEG/RG&E, NYPA, LIPA, etc. Users ConEd, National Grid, NYSEG/RG&E, LIPA, municipal power systems, etc. Base Load: Nuclear, Fossil, Hydro Renewable: Wind, Solar, Hydro Bulk System – High VoltageLocal System NYISO’s responsibility ends here!

17. 17 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

18. 18 NYISO Governance 10-member Board of Directors with experience in energy, environment, finance, academia, technology and communications Board 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

19. 19 End-Use Consumers 20% Generation Owners 21.5% Other Suppliers 21.5% Transmission Owners 20% Power Authorities – NYPA & LIPA (8%) Municipals & Co-ops (7%) Environmental Parties (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

20. 20 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.

21. 21 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

22. 22 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

23. 23 Capacity by Fuel Type MW (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

24. 24 Energy by Fuel Type

25. 25 Bilateral Contracts 50% Real Time 2% Day-Ahead Market 48 % NYISO Markets  Day-Ahead  Real Time NY’s Wholesale Electricity Markets

26. 26 NYISO Load Zones A C E F I J H B D G K

27. 27 Wholesale Energy Costs NOTE: 2011 electric costs are estimated April 2012 YTD Average $36.05/MWh

28. 28 Historic Peak Loads YearPeak Load 199828,166 MW 199930,311 MW 2000 28,136 MW 2001 30,983 MW 200230,664 MW 200330,333 MW 2004 28,433 MW 2005 32,075 MW 2006 33,939 MW 2007 32,139 MW 2008 32,432 MW 2009 30,844 MW 2010 33,452 MW 201133,865 MW 201233,295 MW (forecast)

29. 29 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

30. 30 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

31. Generation Added 31

32. Transmission Added 32

33. Demand Response Resources 33

34. Emissions

35. Windpower Existing Wind Generation -- 2011 (nameplate capacity) -- 1,348 MW Proposed Wind Generation (nameplate capacity) -- 7,039 MW

36. 36 NYISO Planning Congestion Study Review of Specific Proposals Reliability Planning Economic Planning

37. 37 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