NYS pushes generation, slashes metering funds. (News).

GUILDERLAND, NY--The New York Independent System Operator (NYISO) on February 23 forecast that New York City, Long Island, and the state as a whole should have adequate power supplies during the summer months of 2003.

The NYISO forecast cites improvements to a number of existing facilities, the addition of a modest amount of new generation, and the implementation of demand response programs by the NYISO and the utility companies to reduce demand during times of peak need as factors in its forecast.

The installed capacity required for New York State for the months of May through October 2003 is 37,087 megawatts (MW), according to the report. Currently, 36,527 MW of installed capacity is available from in-state resources. Anticipated new generation, out-of-state capacity, and the capacity that demand response programs produce, add to this in-state capacity to provide a total of 37,087 MW.

"Despite the forecast for this summer, New York still needs to focus on getting new generators sited and built on an expedited basis. New York's electric demand continues to rise and shows little sign of abating. Unless significant generating capacity is added to the system--and soon--demand is going to overwhelm supply and reliability will be at risk," said William J. Museler, NYISO president and CEO.

The NYISO was also expected to approve a pricing change in the state's wholesale electric markets aimed at providing more revenue to power generators. Opponents, led by consumer groups and utilities like Consolidated Edison, say the move will lead to higher electric prices. Though critics originally argued that the price rise would be 8% a year, they now say the annual hike would probably be around 25% for retail bills. That amounts to an estimated $160 million for city users. Plant operators say the change is needed to spur construction of new plants and phase out older, dirtier ones. They say that need would become particularly acute if Indian Point is forced to close or if some upstate plants, which are struggling financially, go bankrupt. The change involves putting a floor and a ceiling on the price for installed capacity, which is factored into the price of wholesale electricity. By putting in a floor, generators would be guaranteed a certain amount of money for their installed capacity, giving them a f inancial boost and making it easier for them to get loans from the capital market to build new plants. Still it was all but clear that New York State's energy deregulation was furthering all proposals that could enhance the state's energy reliability. Panelists at a trade fair on advanced metering disagreed on the financial impacts of changes to advanced metering rules being proposed by New York State agencies. At a February 12 event sponsored by the New York Energy Buyers Forum (NYEBF), a coalition of commercial retail energy ...