Full Title: Competitive Electricity Markets Spotlight: New York ISO
Author(s): Electric Power Supply Association (EPSA)
Publisher(s): Electric Power Supply Association (EPSA)
Publication Date: April 20, 2021
Full Text: Download Resource
The New York Independent System Operator (“NYISO”) manages New York’s electric grid and competitive wholesale electric marketplace. The NYISO serves 19.8 million New Yorkers. In addition to cutting consumer costs by $7.8 billion over its history through improved grid efficiencies, NYISO utilizes a diverse energy mix to provide New York with reliable power.
NYISO’s Energy Market secures electricity supply to meet consumer demand in real-time and in the near-term (sometimes referred to as the forward or day-ahead market). Power is bought and sold in the energy market much like a stock exchange – electric generators offer into the market at the price required to cover the costs of producing power and then utilities (or load-serving entities) bid for that electricity in order to meet their customers’ energy demand. The offers are then stacked in order from lowest to greatest and the energy market “clears” where supply and demand meet. Electric generators then receive the clearing price established from the utilities.