Latest Decision From FERC Highlights Potential For State Action On Resource Adequacy

Late in the eve before the Labor Day weekend, the Federal Energy Regulatory Commission ("FERC") rejected changes proposed by the New York Independent System Operator ("NYISO") to improve its buyer-side mitigation ("BSM") rules. ¹ The proposed improvements to the so-called "Part A" and "Part B" tests would have made it easier for resources receiving direct incentives and related state support – such as wind, solar, and battery storage – to pass those tests and avoid the price floor requirements in the capacity market. The changes were recommended not only by the NYISO's Market Monitor but were easily approved by a supermajority of NYISO stakeholders, even including generator groups that have consistently supported the FERC's recent slew of BSM orders.