FERC Filings
MOTION TO INTERVENE AND PROTEST OF INDEPENDENT POWER PRODUCERS OF NEW YORK, INC. AND ELECTRIC POWER SUPPLY ASSOCIATION-Consolidated Edison Company of New York, Inc.-Docket Nos. ER01-1385-000; EL01-45-000
II. BACKGROUND
In its March 1 filing, Con Edison states that revisions to the Mitigation Measures are necessary to “close certain loopholes in their coverage” that it believes have become apparent since the NYISO commenced operations. March 1 filing at 1. Con Edison claims that New York City consumers have been excessively charged tens of millions of dollars because the Mitigation Measures have failed to prevent the exercise of localized market power. Con Edison proposes revisions to the Mitigation Measures that would expand the application of mitigation to: 1. the real-time market; 2. all instances where generation must be operated out of merit due to local reliability requirements; 3. start-up and minimum generation bids whenever mitigation would apply to a unit’s incremental energy bid; and 4. all in-City units, rather than only the facilities divested by Con Edison. Con Edison requests that the revised Mitigation Measures become effective May 1, 2001.
As discussed below, Con Edison has failed to meet its burden imposed under Sections 205 and 206 of the Federal Power Act of proving that the revisions to the Mitigation Measures are just and reasonable or that the existing Mitigation Measures are unjust, unreasonable, unduly discriminatory or preferential. Con Edison’s proposed revisions are unnecessary because the NYISO’s mitigation measures administered by its Market Monitoring Unit (“MMU”) are adequate to detect and mitigate localized market power in New York City. In addition, the proposed revisions will harm the development of a robust competitive market by inhibiting the entry of critically needed supply in New York City. Further, the proposed revisions will undermine incentives for Con Edison to implement prudent demand response options, such as securing a portfolio of products that would allow Con Edison to protect its customers from price increases that may occur as a result of supply shortages.