BY STEPHEN G. WHITLEY<\/p>\n
Fifteen years ago, New York restructured
\nits electricity industry by embracing one
\nfundamental belief: Competition, not
\nmonopolies, would create a more efficient
\nelectric system and provide real benefits for
\nconsumers.<\/p>\n
The move was controversial, but the facts
\nare incontrovertible: The decision was wise.<\/p>\n
New York’s fair, open wholesale markets
\nprovide competitively priced electricity that
\nmeets consumer demands. These markets have
\nalso produced billions in savings, cleaner, more
\nefficient power plants, and the integration of
\nsignificant new wind energy.<\/p>\n
The New York Independent System Operator
\n(NYISO), which manages New York’s electric
\ngrid and the competitive markets that power
\nit, has managed this market transformation.<\/p>\n
An independent, neutral, and not-for-profit
\norganization, the NYISO recently analyzed and
\nquantified the under-publicized benefits of 15
\nyears of open competition.<\/p>\n
Increased fuel efficiency. Competition has
\nreduced the amount of fuel used to produce
\nelectricity, cutting costs by $6.4 billion.
\nNew York’s electric system improved its fuel
\nefficiency at a pace three times the national
\naverage.<\/p>\n
Reduced reserve requirements. New York
\nsaved another $540 million as its markets
\nhelped reduce electricity needed above peak
\ndemand levels. Competition-based incentives
\nfor generators helped shrink this reserve
\nmargin from 22 to 17 percent.<\/p>\n
Competitively priced commodity costs.
\nMarket prices fluctuate, but New York’s
\nwholesale electricity costs (independent of
\ndelivery costs, taxes, and surcharges) in 2013
\nwere only 2 percent higher than electricity
\ncommodity costs in 2000, while inflation grew
\nby more than 35 percent.<\/p>\n
Reduced carbon emissions. Fuel efficiency
\nimprovements spurred by competitive markets
\nhave contributed to environmental quality.
\nNearly 25 million tons of carbon emissions
\nwere avoided in 2013 compared to 1999–a
\n41 percent reduction equivalent to taking 4.8
\nmillion passenger vehicles off the road.<\/p>\n
Increased green power. Competition is
\nhelping to cultivate renewable energy. Between
\n2003 and 2013, New York added enough wind
\ngeneration to power 490,000 homes.<\/p>\n
Investments in new generation. From
\n2000-2014, power suppliers added over 10,400
\nmegawatts of generation – 80 percent of it in
\nhigh-demand areas. The additions represent 27
\npercent of New York’s electricity requirements.
\nThis success has been made possible by
\npolicymakers who envisioned a better way as
\nwell as market participants, regulators, and
\nother stakeholders who constantly sharpen
\nthat vision.<\/p>\n
The NYISO contributes in many ways.
\nFor example, we maintain reliable, cost effective
\noperation of the bulk electric system
\nby conducting real-time, competitive auctions
\nof wholesale electricity – every five minutes,
\n365 days a year.<\/p>\n
We meet the nation’s strictest reliability
\nstandards, including nearly 1,000 requirements for safe, secure electric service. We are proud<\/p>\n
of
\nour record of sustained grid reliability.
\nWe conduct independent, unbiased research
\nand analysis that generates information needed
\nto plan for New York’s future power needs.
\nAnd we invest in state-of-the-art tools and
\ntechnology that are making possible a new,
\nsmarter grid.<\/p>\n
Competitive electricity markets have
\nworked – for New York and its homes; for
\nits businesses and government entities. The
\nNYISO will sustain its commitment to reliable,
\nresponsible electric service as it powers New
\nYork responsibly.<\/p>\n
Whitley is the president and chief executive Photo Courtesy New York Independent System Operator<\/p>\n","protected":false},"excerpt":{"rendered":" Stephen Whitley, CEO and president of the New York Independent System Operator.BY STEPHEN G. WHITLEY Fifteen years ago, New York restructured its electricity industry by embracing one fundamental belief: Competition, not monopolies, would create a more efficient electric system…<\/p>\n","protected":false},"author":121,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[58,68,102],"class_list":["post-17787","post","type-post","status-publish","format-standard","hentry","category-business-reports","tag-business-reports","tag-energy","tag-ny-state"],"yoast_head":"\r\n
\nofficer of the New York Independent System
\nOperator, the organization that operates New
\nYork’s high-voltage power grid.<\/em><\/p>\n