New York Independent System Operator (NYISO)
In this letter to the NYISO's Board of Directors dated October 20, 2006, the New York State Department of State Division of Consumer Protection explains that the Board should not overturn recent decisions by NYISO committees to implement new measures to help prevent the exercise of market power in electric capacity markets in New York State. Deficiencies in the oversight of that market caused consumers to pay tens of millions of dollars more than necessary for electricity. The Division worked with utilities and other parties to develop a new measure to ensure that prices in electricity capacity markets are reasonable.
Request for Investigation of Capacity Market
In this July 14, 2006, letter, the New York State Department of State Division of Consumer Protection requests that the NYISO conduct an immediate and formal investigation of the electric capacity market in New York State, particularly New York City, to determine if there has been an exercise of market power. Electric capacity prices have been at relatively high levels, despite the addition of capacity in recent years.