ESCO Opposes Request By ConEd For FERC Waiver To Correct Data Previously Provided To NYISO

March 8, 2024

Email This Story
Copyright 2010-23 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

The following story is brought free of charge to readers by VertexOne, the exclusive EDI provider of EnergyChoiceMatters.com

Electree LLC has opposed a February 16 petition at FERC filed by Consolidated Edison Company of New York, Inc. ('Con Edison', 'ConEd', or the 'Company') in which ConEd moved for a limited one-time waiver of section 7.4.1 of the New York Independent System Operator’s ('NYISO’s') Market Administration and Control Area Services Tariff ('Services Tariff')

ConEd had said in its February 16 petition that, "on November 12, 2023, Con Edison made an inadvertent error with respect to its role as the metering authority for its transmission district resulting in a significant underreporting of the generation production values from the Astoria Energy, LLC ('Astoria Energy') Unit 1 Facility located in NYISO Zone J (the 'Astoria 1 Facility')."

ConEd said, "This error, which was not discovered until January 23, 2024, resulted in an underreporting of approximately 173,000 Megawatt-hour ('MWh') to the NYISO for Astoria Energy for the month of September 2023. As a result, Astoria Energy was required to return most of the revenues that the NYISO had initially paid to Astoria Energy for the energy produced by the Astoria 1 Facility."

ConEd noted that the time period to correct generator data for the September 2023 billing month ended on December 5, 2023

The deadlines to challenge load data and for meter authorities to submit updated Transmission Owner Load ('TOL') files are February 28, 2024, and March 4, 2024, respectively.

Con Edison on Feb. 16 had requested that FERC act before February 28, 2024 to issue a waiver of section 7.4.1 of the Services Tariff so that Con Edison can submit corrected generator data for the Astoria 1 Facility’s production to the NYISO and the NYISO can use that data to facilitate appropriate invoices and settlements on the Final Bill Closeout Invoice, which will be posted for final review on May 6, 2024 and issued on June 7, 2024.

Alternatively, if the Commission does not grant this waiver prior to February 28, 2024, Con Edison had requested that the Commission grant a waiver enabling the NYISO to update its entire TOL data file for September 2023. Granting a waiver will enable Astoria Energy to be paid for all of the energy it supplied during that month. A waiver will also enable the NYISO to accurately bill the LSEs in the Con Edison service territory for the energy that their customers used.

ConEd said, "Granting a waiver will enable Astoria Energy to be paid for all of the energy it supplied during that month. A waiver will also enable the NYISO to accurately bill the LSEs in the Con Edison service territory for the energy that their customers used ... Granting this waiver will enable the NYISO to correctly pay Astoria Energy for the energy that it supplied and restore LSE bills to what they should have been but for the billing error."

ConEd said, "Moreover, while this waiver will correct the volume of energy recorded as being produced by Astoria Energy and the volume of energy recorded as being consumed by certain Zone J LSE customers, it will not change the actual energy price. This is because the data used to dispatch generation, which ultimately determined the price of energy, was viewed as being accurate."

ConEd said, "While some LSEs may have to pay an increased amount for their September 2023 bills, the amount they would pay would be equal to the actual energy that their customers used. In the end, granting a waiver will enable LSEs to pay for the actual amount of energy their customers used."

Electree opposed ConEd's petition

"Electree strongly urges the Commission to deny Con Edison's waiver request in order to uphold the integrity, transparency and equitable treatment of all market participants in the New York Independent System Operator ('NYISO') energy markets," Electree said

"Granting the requested waiver poses a severe threat to the integrity of NYISO's market operations and the procedural discipline that is essential for an orderly, rules-based marketplace. Allowing retroactive data corrections of this magnitude, even if unintentional, compromises the strict standards of accuracy and accountability. It enables a dangerous precedent of leniency that could diminish the overall integrity of the market's processes. Market participants must have full confidence that billing data cannot be adjusted once reporting deadlines have passed," Electree said

"Con Edison's errors have directly and unduly burdened LSEs through issuing inaccurate energy billing data and the prospect of unplanned, retroactive payment adjustments. This situation threatens the financial planning capabilities and stability of LSEs. Ultimately, the costs and risks created by Con Edison's mistakes get passed through to consumers in the form of unexpected rate increases, eroding consumer confidence and violating principles of market transparency. LSEs and consumers should not bear the financial repercussions of a utility's avoidable errors," Electree alleged

"Any process to adjust billing data after the NYISO's established reporting deadlines have lapsed must adhere to the highest standards of transparency and due process. This is critical to protect all market participants from potential disadvantages. Con Edison has not provided adequate justification for why its error warrants the extraordinary remedy of a full waiver that could unfairly impact other parties financially," Electree said

"To uphold market integrity and discipline, Con Edison must be held fully accountable and responsible for bearing the principal consequences of its own reporting inaccuracies. Granting an extraordinary waiver without requiring Con Edison to bear the majority of the financial impact would set a deeply concerning precedent - that errors by market participants can be rectified at the expense of others," Electree said

"Electree respectfully requests the Commission deny Con Edison's waiver request. Preserving consumer interests and upholding steadfast compliance with NYISO's established market rules and procedures should be prioritized over allowing a market participant's mistake to be remedied through an extraordinary waiver. Granting such a waiver risks severe unintended consequences that could undermine confidence in the entire New York energy marketplace. Strict adherence to reporting timelines and the disciplined rules of the marketplace is essential for ensuring equitable treatment of all market participants," Electree said

Docket No. ER24-1291

ADVERTISEMENT

ADVERTISEMENT
NEW Jobs on RetailEnergyJobs.com:
• NEW! -- Sr. Market Risk Analyst -- Retail Supplier
• TPV Sales Executive

HOME

Copyright 2010-23 Energy Choice Matters.  If you wish to share this story, please email or post the website link; unauthorized copying, retransmission, or republication prohibited.