NYISO seeks change to credit requirements for transmission congestion product

摘要

New York Independent System Operator has asked for the Federal Energy Regulatory Commission’s nod on new credit requirement calculations for certain transmission congestion contracts in an effort to better align the grid operator’s requirements with the risk associated with those financial instruments. TCCs allow market participants to hedge transmission price fluctuations from congestion. TCC holders either have the right to collect or the obligation to pay congestion rents in the day-ahead market for power associated with transmission between specified points of injection and withdrawal. NYISO said the tariff changes (ER21-486) it proposed would help protect NYISO’s markets in the event of a default. Because credit is collectively extended by all market participants in NYISO to each individual market participant, a default by one company requires the others to make up the shortfall, the grid operator said in its filing to FERC.