On October 5, 2018, FERC accepted revisions to the New York
Independent System Operator, Inc.'s ("NYISO")
methodology used to determine Locational Installed Capacity
Requirements ("LCRs") in NYISO's Installed Capacity
("ICAP") market. In doing so, FERC found that the
proposed Alternative LCR Methodology was just and reasonable
because, among other things, the Alternative LCR Methodology
results in LCRs, and thus capacity costs, that are reasonably
aligned with the associated reliability benefits.
Under current rules, each year, the New York State Reliability
Council, L.L.C. ("NYSRC") establishes the Installed
Reserve Margin ("IRM") for the upcoming Capability Year.
NYISO then uses the IRM to calculate the statewide minimum ICAP
requirement for each Capability Year (referred to as the
"Unified Method"). NYISO's ICAP market rules require
all load-serving entities ("LSEs") to purchase a
specified amount of capacity to count toward this statewide
minimum, and LSEs with
