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New Challenges Facing System OperatorsStephen G. WhitleyPresident & Chief Executive OfficerNew York Independent System Operator

Past Present and Future of the Power GridA Cornell University workshop in honor of Robert J. ThomasIthaca, NYAugust 9, 2012

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Topics

• Growth of the Grid• Renewable Resources• Demand Response• Advancing Technology• Regional Collaboration

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Growth of the Grid

Pearl Street Station distribution area, New York, Image 69231, Electricity & Modern Physics Collection. National Museum of American History - Smithsonian Institution

1882Pearl Street Station

59 customers

600 kW of generation

10.5 miles of main lines

2012New York Control Area

7 million electric utility customers

43,000,000 kWof generating capacity,

transmission capability & demand-response

11,000 circuit-miles of high-voltage transmission

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Looking Ahead

• Integrating Renewable Resources• Empowering Consumers• Advancing Technology• Enhancing Collaboration

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Wind Power• 2006 – NYISO exempts wind from undergeneration

penalties as a variable energy resource• 2008 – NYISO establishes centralized wind

forecasting system established• 2009 – NYISO integrates wind into Economic

Dispatch system (First in nation)

Growing wind in NY… Wind-powered generating capacity in NY grew

from 48 MW in 2005 to 1,414 MW in 2012 Another 4,000 MW of wind projects proposed

for interconnection to NY grid

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2009 -- NYISO implements first market rules in US enabling storage systems to participate in the markets as frequency regulation providers

Energy storage complements development of variable energy resources

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Energy Storage

NY’s Energy Storage Firsts… First commercial grid-scale battery-based storage

system to operate as a generator in the US First full-scale flywheel energy storage facility to

provide frequency regulation service in the US

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2012 – NYISO exempts solar power from under-generation penalties to compensate solar fully for all energy production

Future – Market evolution for solar resources likely to parallel wind power initiatives

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Solar Power

Grid-scale solar in NY… The largest photovoltaic array in the

eastern US is the 32-MW Long Island Solar Farm at Brookhaven National Laboratory – completed in Nov. 2011

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Demand Response

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Shaving the Peak

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NYCA 2011 Peak DayWith & Without Demand Response

20,000

22,000

24,000

26,000

28,000

30,000

32,000

34,000

36,000

38,000

1 2 3 4 5 6 7 8 9 101112 131415 16171819 202122 2324

Actual Without Demand Response

Actual Load with DR

Estimated Load without DR

July 2011 heat waves could have

pushed demand to over 35,000 MW

-- a new record peak -- had DR

programs not served to reduce

load by more than 1,400 MW

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Dynamic Pricing

NYISO/Brattle Group Study Dynamic pricing can encourage shift to off-peak usage Potential 10-14% reduction in system peak Market-based customer cost reductions of 2-5%

Impact of Dynamic Pricing on Hourly Loads

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Smart Grid

Smart Grid Investment Grant (SGIG) Three-Year project -- $74 Million (DOE SGIG funding of

$37 Million to cover 50% of project cost)

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Project components Creation of a statewide Phasor

Measurement Network

Installation of Capacitor Banks

Enhanced reliability PMU Installation one of key DOE recommendations

from 2003 blackout study endorsed by FERC and NERC

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NYISO Infrastructure

New state-of-the-art primary control center in a facility adjacent to existing corporate center

Renovation of 42-year-old power control facility to serve as alternate control center Existing

Corporate Center

New Primary Power Control

Center

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Regional Collaboration

• Broader Regional Markets Address “seams” between regional

markets and grid operations

Collaborative effort - NYISO, PJM Interconnection, Midwest ISO, ISO- New England, Ontario’s Independent System Operator and Hydro Quebec

More frequent scheduling can facilitate better regional integration of variable, renewable resources

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Interregional Planning

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Eastern Interconnection Planning Collaborative 25 electric system planning

authorities in U.S. and Canada representing 95% of Eastern Interconnection

Grassroots effort to integrate local planning interconnection-wide

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Moving Forward

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The New York Independent System Operator (NYISO) is a not-for-profit corporation

responsible for operating the state’s bulk electricity grid, administering New York’s competitive wholesale electricity markets,

conducting comprehensive long-term planning for the state’s electric power system, and

advancing the technological infrastructure of the electric system serving the Empire State.

www.nyiso.com