New York ISO and ISO New England streamline energy exchange between regions
Coordinated Transaction Scheduling Expected to Reduce Wholesale Electricity Costs
The New York Independent System Operator (NYISO) and ISO New England have implemented a new interregional market system that will streamline electric energy transactions and improve the flow of power between the two markets. Introduced on December 15, Coordinated Transaction Scheduling (CTS) makes more efficient use of the transmission lines by enabling market participants to access the lowest-cost source of power between the two regions.
Enhancements include increasing the frequency of scheduling energy transactions over the transmission network between regions, software changes so the two ISOs can better coordinate selection of the most economic transactions, and the elimination of several fees that impede efficient trade between New York and New England. With these changes, higher-cost generation can be displaced by lower-cost generation, wherever the lower-cost supply is located.
“Coordinated Transaction Scheduling will increase competition because it improves the ability for market participants to trade between regions. The anticipated result will be lower wholesale costs,” said Gordon van Welie, president and CEO of ISO New England Inc. “Credit goes to the staffs of ISO New England and the NYISO, as well as market participants, for the successful implementation of this important market upgrade.”
“This successful deployment is the latest example of our strong working relationship with ISO New England,” said Bradley Jones, NYISO president and CEO. “Enhancing the efficient flow of power between our electric systems through coordinated scheduling is critical for wholesale market efficiency. Our Broader Regional Markets initiatives are providing savings by optimizing the use of the most efficient regional power resources.”
Both grid operators have been working cooperatively since FERC approval of CTS in 2012 to develop the complex system and related process enhancements as well as training market participants on how to use this market update.