- Administering New York’s Electricity Markets
The NYISO manages the available supply of power from hundreds of electricity-generating facilities around the state and balances it with consumer demand via competitive wholesale markets that encourage efficiency.
- Hundreds of power producers make offers to supply electricity to New York’s 19 million consumers.
- The NYISO accepts the lowest-cost offers to reliably meet consumer demand, sparking price competition and promoting the most cost-effective wholesale power for New York consumers.
- Every five minutes, every day of the year, the NYISO conducts and monitors competitive auctions of wholesale electricity, which matches the companies serving electricity consumers with New York’s bulk power suppliers.
- Improving Efficiency, Controlling Costs
When power producers are made to compete, they have an incentive to improve efficiency. Since the inception of the NYISO, New York’s market system has led to a reduction in the amount of fuel needed to produce electricity. That’s not only good for consumers; it’s good for the environment, too.
Competition in wholesale electricity markets has helped stimulate investments in cleaner generation and encourage operating changes to improve the overall efficiency—and reduced emissions—of New York’s power plants.
- Thanks in part to competitive market pressures to lower production costs improvements in the fuel efficiency of New York’s power generator exceeded the national rate by 300%.
- From 2000 – 2013, that increased fuel efficiency produced cost savings of $6.4 billion.
- What Else Have Open and Efficient Markets Achieved?