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NYISO Adds Transmission Project Cost Containment to its Tariff

On December 17, 2019, in ER20-617, the NYISO proposed changes to its public policy transmission process to establish provisions for cost containment of transmission projects proposed by developers.  As detailed in its filing, the NYISO’s proposed revisions will establish: (A) the cost containment mechanisms that a Developer may voluntarily include as part of a proposed Public Policy Transmission Project in the Public Policy Process; (B) how the NYISO will evaluate in a quantitative and qualitative manner cost containment commitments made by Developers to select the more efficient or cost effective transmission solution to a Public Policy Transmission Need; (C) the manner in which cost containment commitments will be implemented as part of the rate recovery for a selected transmission project; (D) the requirements to include any cost containment commitment in the pro forma Development Agreement that must be entered into between the NYISO and the Developer of the selected project; and (E) additional, related tariff revisions.

Paul Dumais's picture

Thank Paul for the Post!

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Matt Chester's picture
Matt Chester on Jan 21, 2020 3:56 pm GMT

What are the expected implications/impacts of this move, Paul?

Paul Dumais's picture
Paul Dumais on Jan 21, 2020 5:24 pm GMT

Most developers in the past included cost caps in their proposals.  This change by NYISO provides how they will evaluate cost caps.  IN th epast, they have not included them directly in their project evaluations.  

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