Commissioner James Danly
July 17, 2020
Docket Nos. ER16-1404-001, ER16-1404-002
I concur in the result of this order, insofar as it correctly finds that New York Independent System Operator, Inc.’s (NYISO) compliance filing has satisfied the requirements of the Commission’s February 2020 Order. That order required specific narrow adjustments be made to NYISO’s buyer-side market power mitigation rules, and I agree with the Commission that NYISO has made the required adjustments.
I write separately, however, to express my misgivings about the effects of NYISO’s filing on the operation of its markets. Any regime that implements such exemptions in its market power rules may not be capable of properly employing market forces to arrive at just and reasonable rates. Markets function when they establish universal rules applicable to all participants—exemptions, regardless of the policy objectives they may seek to achieve, impede a market’s ability to set prices that accurately reflect market forces.
Consequently, I urge the Commission to consider seriously the implications of the exemptions approved today on the overall effectiveness of NYISO’s buyer-side market power mitigation rules if the Commission has the opportunity to do so in the future.
For these reasons, I respectfully concur.
 N.Y. Indep. Sys. Operator, Inc., 170 FERC ¶ 61,121 (2020) (February 2020 Order).