On July 29, 2019, the New York Public Service Commission (“NYPSC”) and the New York State Energy Research and Development Authority (“NYSERDA”) filed a complaint at FERC seeking to exempt energy storage resources within the New York ISO market from Buyers Side Mitigation (“BSM”) rules. The New York ISO’s BSM rules are akin to PJM’s so-called Minimum Offer Pricing Rule (“MOPR”). The BSM and MOPR rules require an Offer Floor for new market entrants within the RTO-administered capacity markets. The rules are intended to limit uneconomic entry but have proven to be controversial over the past several years, having spawned significant administrative and appellate litigation.

The July 29 complaint requests a blanket exemption from BSM measures for storage resources, or in the alternative, an annual exemption of 300 MW with unused exempt capacity carried forward to subsequent annual periods. The NYPSC and NYSERDA seek fast track processing of the complaint in order for the requested changes to be in place prior to the commencement of the next interconnection cycle, the so-called CY 19 interconnection process, set to begin in August 2019. Notably, pursuant to Section 74 of the New York State Public Service Law, the NYPSC has adopted a statewide energy storage goal and deployment policy which includes installation of up to 3,000 MW of energy storage systems by 2030, with an interim objective of deploying 1,500 MW of energy storage systems by 2025.

The complaint is noteworthy because (i) it demonstrates how certain state-driven renewable and storage deployment goals may run into barriers at the regional market level, and (ii) it sets off another round of battles over the application of BSM/MOPR rules. Comments on the July 29 complaint are due by August 19, 2019. The July 29 complaint, docketed at EL19-86-000, can be found here.