NYISO, others blast gas generators’ proposed fix to alleged price distortions in capacity market
While Cricket Valley and Empire argue the same issue exists in NYISO as in PJM, and therefore FERC should approach the two filings exactly the same, NYISO and other stakeholders in the region disagree.
Cricket Valley complains that zero emissions credits, renewable energy credits and offshore wind credits, which compensate load-serving entities for procuring zero carbon resources in order to meet the state’s clean energy goals, are suppressing market prices in the state. Both generators own or are building gas plants in the NYISO footprint and say the prices those plants had been promised have been “crushed” largely due to subsidized clean energy resources.
The Independent Power Producers of New York (IPPNY), a trade group that represents New York competitive suppliers in the state, generally supported the generators’ complaints, though it noted its concern that FERC taking such a measure could “increase the tension between State policy goals and the competitive wholesale markets” that could result in “years of litigation.”
As a result, IPPNY and the Electric Power Supply Association, a trade group representing competitive power suppliers across the U.S., both encouraged carbon pricing as an alternative solution in their filed comments, though EPSA added “[w]ithout such an approach … expanding the MOPR to all resources in the [New York Control Area] would be necessary to preserve the market as the grid decarbonizes.”