ISO New England (ISO-NE) and the New York Independent System Operator (NY-ISO) announced the implementation of a new interregional market system on December 15 that is expected to streamline electric energy transactions, cut costs, and improve the flow of power between the two regions.
The system – based on 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.
- More frequent scheduling of energy transactions over the transmission network between regions;
- Software changes that will enable the two ISOs to better coordinate selection of the most economic transactions; and
- Elimination of several fees that impede efficient trade between New England and New York.
With these changes, higher-cost generation can be displaced by lower-cost generation, wherever the lower-cost supply is located, according to ISO-NE CEO Gordon van Welie, who said, “Coordinated Transaction Scheduling will increase competition, because it improves the ability for market participants to trade between regions….Credit goes to the staffs of ISO New England and the NY-ISO, as well as market participants, for the successful implementation of this important market upgrade.”
“Our Broader Regional Markets initiatives are providing savings by optimizing the use of the most efficient regional power resources,” said NY-ISO ,” CEO Bradley Jones.
Both grid operators have been working cooperatively since the Federal Energy Regulatory Commission (FERC) approved (Docket No.ER12-1155-000) 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.