On April 23, 2010, FERC conditionally approved the New York Independent System Operator’s (“NYISO”) proposed revisions to their Market Administration and Control Area Services Tariff (“Services Tariff”).  Specifically, NYISO’s proposed revisions dealt with the issue of “Customer Compliance with Laws, Regulations and Orders.”  

NYISO originally submitted revisions to its Services Tariff on October 27, 2009.  However, on December 23, 2009, the Acting Director of the Division of Electric Power Regulation-East issued a deficiency letter related to NYISO’s filing.  On February 22, 2010, NYISO filed additional information in response to the deficiency letter.   

FERC found the proposed revisions to Section 4.1.6a of the Services Tariff were reasonable, but directed NYISO to make the following changes or additions:

  • FERC directed NYISO to include a clarification statement which says that all customer violations of FERC “orders, rules and regulations” also violate 4.1.6a of the Services Tariff;
  • FERC rejected NYISO’s proposed sentence for 4.1.6a2, which enabled NYISO to retain discretion to inform FERC of electric energy market manipulation.  FERC also encouraged NYISO to notify the Office of Enforcement (“OE”) if the Market Monitoring Unit does not refer a violation; and
  • FERC rejected NYISO’s proposal which would “request that FERC determine whether a violation has occurred and if so, that FERC impose appropriate remedies.”  FERC also found that NYISO can request that FERC make these determinations, but cannot expect the release of information by OE.

FERC accepted NYISO’s filing with an effective date of December 27, 2009, conditioned upon NYISO filing revised tariff sheets within 30 days reflected the above-referenced changes.

FERC’s full order can be found at www.ferc.gov under Docket No. ER10-119-000.