New York electricity market (NYISO)

• The New York power grid is self-contained in the state of New York.
• The southeastern part of this region the most heavily concentrated areas of demand for electricity in the country: New York City and Long Island.
• The region is characterized by the flow of low cost power from the northern and western sections of the state into the high demand regions surrounding New York City.
• Most of New York metropolitan area is located on islands ==> (1) there is limited ability to transfer power to those areas from other parts of the region; (2) high reliance on inefficient generators during periods of peak demand. ==> New York City area is one of the most expensive power market in the country.
• To assure reliable service, power plants in the New York metropolitan area are subject to much stricter rules and regulatory requirements than are common in other regions.