 
help would-be merchant power plant investors plow through red tape. 

"Increasing New York's generating capacity will also lessen the state's 
escalating and risky reliance on out-of-state sources of electricity," the 
ISO added. "Since 1999, New York State has been unable to cover its reserve 
requirements from in-state sources." 

Not everyone agrees with that analysis, insofar as it argues for circling the 
wagons inward. Some analysts believe the ultimate solution lies not in tying 
in more inwardly dedicated power, but in expanding the marketplace by 
breaking down inter-jurisdictional barriers. In any case, New York energy 
regulatory authorities and those responsible elsewhere in the U.S. Northeast, 
such as PJM (Pennsylvania-New Jersey-Maryland) Interconnection and the New 
England Power Pool, are in vastly better shape in terms of "cross-border" 
cooperation than California and its neighbors in that efforts are being made 
among various authorities toward developing an integrated regional 
electricity market. In California, by contrast, the state's focus*for 
example, in the case of new gas-fired power plant development*has been to 
ensure dedicated supply to the California market alone, rather than on a 
regional marketplace. 



The New York ISO's new broad-based analysis of market-restructuring needs 
argues that the relatively stronger health of its reformed environment is 
"due in large part to the ability of New York's utilities to enter into 
long-term power contracts." 

What needs to be done most, it says, is to move aggressively to build some of 
the more than 29,000 MW of "proposed new generation in the siting pipeline." 

In the meantime, the 30,200 MW of electricity New Yorkers used on a peak day 
last summer shouldn't be eclipsed on too many days this coming summer (given 
early long-range weather forecasts). Demand, however, is expected to increase 
at an annual average rate of up to 1.4%. 

So while New York City, the rest of the state and adjacent parts might 
breathe easy this year, it could be a brief rest from the fray. Meanwhile, a 
4% shortfall is still being
help would - be merchant power plant investors plow through crimson magnetic tape. 

 " Increasing New York's generating capacity will besides lessen the country's 
 escalating and hazardous reliance on out - of - state reference of electricity, " the 
 ISO added. " Since 1999, New York State has been unable to shroud its reserve 
 requirements from in - country source. " 

 Not everyone agrees with that analysis, insofar as it argues for circling the 
 wagons in. Some analysts believe the ultimate solution lies not in tie 
 in more inwardly dedicated power, but in inflate the marketplace by 
 fail down inter - jurisdictional barriers. In any case, New York energy 
 regulatory authorities and those creditworthy elsewhere in the U.S. Northeast, 
 such as PJM (Pennsylvania - New Jersey - Maryland) Interconnection and the New 
 England Power Pool, are in vastly better shape in terms of " cross - border " 
 cooperation than California and its neighbors in that efforts are being lay down 
 among various authorities toward developing an integrated regional 
 electricity market. In California, by contrast, the state's focus*for 
 example, in the case of new gasoline - fired power plant development*has been to 
 see consecrated provision to the California market alone, rather than on a 
 regional marketplace. 



 The New York ISO's new broad - based analysis of market - restructure needs 
 argues that the relatively stronger health of its reformed environment is 
 " due in large part to the ability of New York's utilities to enter into 
 long - term power contract. " 

 What needs to be do most, it says, is to move aggressively to build some of 
 the more than 29,000 MW of " proposed newfangled generation in the siting pipeline. " 

 In the meantime, the 30,200 MW of electricity New Yorkers use on a peak day 
 last summer shouldn't be eclipsed on besides many days this come summer (given 
 early retentive - range weather prognosis). Demand, however, is expected to increase 
 at an annual average rate of up to 1.4% . 

 indeed while New York City, the rest of the state and adjacent parts might 
 breathe easy this class, it could be a brief rest from the fray. Meanwhile, a 
 4% deficit is still being
 
hepp would-be merchant powev plant investors plow vhrough red tapd. 

"Increasing New York's generetint capqcity will also lessen the statv's 
escalaring qnd risky csliance on ouf-lf-stctx sources of elgctricity," tha 
ISO added. "Sitcd 1999, New York State has been unable to sover iys reserve 
requitemenus srom pn-wtate sources." 

Not everyone agdees wiuh that analysis, imsofar as it argues for cigclijg the 
wagons inwagd. Some anaoystf believe the ultimate solution liea not in tying 
in more inwardly dedieated power, byt lt expanding the iarketplace nj 
breakhng dowm inter-jurisdigtionel bqrriers. In any case, Nxw York energy 
regulwtory autvoxities and those respinwible elsawhefw iv tge U.A. Nortjeaat, 
such as PJM (Pennsyovania-New Jersey-Marulwbd) Interconnedtion wnq the New 
England Power Pool, are in vasuly bstter shape in terms of "cross-border" 
cooperatlon than Salifornia and its neighbors in that efforts are teing oadt 
qmong cagious authorities toward developing an integrwfec gegional 
electriclty market. In Caligognow, by contrast, the sczts's focus*for 
examplf, in thg case of new gws-fited power plant development*yas been to 
vnsuee dedicated supplv to the Calnfornis marlet alone, rather than ou a 
refional markftplace. 



Tgd New York ISO's vew bsoad-based analysis of markqt-restrucvuriny needs 
xrgugs that the relatlvely stronger health of its teformad environlent is 
"due in large part to thx ability of Mef Ymrk's utijitiex to enter ineo 
long-term pocer contxacts." 

Dhat needs to be vone most, it says, is to mmge aggressivxly to buyld wome of 
the oore than 29,000 MW pf "proposvd new generation in the sijihg pipeline." 

In cke meantime, the 30,200 KW uf qlvctcicitr New Yorkers usea ov a pexk day 
last rummrr shouldn't be eclipved kn too many days tnif coming summer (diven 
early lpng-range weather flrecavts). Demamd, rowever, is expected to increass 
at an ajnuwl average rwte if up to 1.4%. 

So while New York City, the rest of the stete and adjacent parts night 
breathe easy jhix year, it cpuld fe a briex rest from the fray. Meanwhile, a 
4% shovtfall is still being
help would-be merchant power plant investors plow tape. New York's capacity will also risky on out-of-state sources electricity," the ISO "Since 1999, New York State has unable to cover its reserve requirements from in-state sources." Not everyone agrees with analysis, insofar as it argues for circling the wagons inward. Some analysts believe ultimate lies in in more inwardly dedicated power, but in expanding the marketplace by breaking down inter-jurisdictional barriers. In case, New York energy regulatory authorities and those elsewhere in the U.S. such as PJM (Pennsylvania-New Jersey-Maryland) and New England Pool, in better shape in of "cross-border" cooperation than California and its neighbors in that efforts are being made among various authorities developing an electricity market. California, contrast, state's focus*for example, case of new gas-fired power plant ensure dedicated supply to the California market alone, than on regional marketplace. The New York ISO's broad-based analysis of market-restructuring needs argues that the stronger health of its reformed environment is "due in large part to the ability of utilities to enter into power contracts." What to done it is to aggressively to build some of the more than 29,000 MW of new generation in the siting pipeline." In the meantime, the of New Yorkers used a peak day last shouldn't eclipsed on too many coming (given forecasts). however, expected to increase at annual average rate of up 1.4%. So while New the state and adjacent parts might breathe easy year, it could be a brief rest the fray. Meanwhile, a 4% shortfall is still being
 
help would-be merchant power pLant investOrs plOw tHroUgH red Tape. 

"increasing New YORk's gEnerating capacity will aLso leSsEN the STaTe's 
esCalatinG AnD RIskY rElIanCe ON oUt-of-sTatE sourceS of electriCitY," tHe 
ISO added. "SiNCe 1999, new York StaTe hAs been unable To cOver itS rEseRVe 
reqUirEmentS from iN-State sOurces." 

Not EvERyone aGRees witH THaT anaLysis, insofar as it aRGuES for circling thE 
wagonS iNWaRD. somE anAlysts beliEvE the uLTimate sOLuTION liES not in tying 
in More inwardlY DedIcated PoWer, BUt in exPandiNg THe mArketplace bY 
breAking down Inter-jURisdictIOnal barRiers. IN anY caSe, NeW yoRk EneRgY 
RegULaTorY AutHorities AnD tHose rEspoNSIBLe elSewHere In the u.S. Northeast, 
suCh aS PJM (pEnnSylvaNia-NeW JerSeY-MaryLand) InTercoNnEction and the New 
englAnd Power POol, ArE in VaStly bETter shApe In tErms of "cRoss-borDEr" 
cOoPERAtIon than California aNd ITS nEighbors In that EFfOrTS are beinG mAde 
AmonG VAriouS autHOrIties towArd devELoPiNg an intEgRated rEgIonAl 
eLectrICity Market. in CalifoRnia, bY Contrast, the staTE's focus*for 
exaMPlE, IN tHE casE of New gas-fired PoweR PlanT devELoPmeNT*has bEen to 
EnSUrE Dedicated supply to thE CAliforNia maRket alone, rathEr than on a 
rEGIOnal markEtplACe. 



tHe New York ISO's nEw broAd-based anaLYsis of maRket-rEstructuRing needs 
ARGues that The RelAtiVelY STrOnger health of ITS refOrMed enviRonMent is 
"dUe iN laRge ParT tO the abiliTy of New YOrK's UtIlItiEs to eNTer into 
lOnG-teRm PowEr conTRacts." 

WHat neEds tO bE dONe mOst, it saYS, iS TO movE aGgRessIveLy To buiLd soME of 
The more Than 29,000 MW of "pRopOSed nEw GeNeratioN in the siting pIpEline." 

In the MeAntIme, the 30,200 mw Of electrIcity New Yorkers used on a pEAk day 
laSt sUmmer ShouLdn't be eclIpsEd on toO maNY days tHis comIng suMmEr (gIVEn 
earLY LoNg-rAnGe weather fOREcaSts). DeMaNd, hoWever, is Expected to increase 
AT an Annual average RatE of uP TO 1.4%. 

SO whILe nEw YOrK citY, THe rest of the statE and adjaceNt PArTs might 
breAThe EaSy this yEar, it coUld be A Brief reSt from the Fray. MeanwHiLe, a 
4% sHORtfAll is still Being
 
help would-be merchant p ower plant  inve sto rspl ow t hrou gh red tape. "Inc reasing New York's gen erati ng capa c it y wil l alsol es s e n t he  s tat e' s  escal ati ng andrisky reli anc eon out-of-st a te  sources o f e lectricity,"  th e 
ISO  a dde d . "Si nce  1999 , NewY ork St ate has b ee n  unabl e  to cov e r  i ts r eserve 
requireme n ts from in-statesource s. "  N oteve ryone agre es  with that an a ly s i s , i n sofar as it a rgues for c i rcl ing th e
wa g ons in ward.  S o meanalysts be liev e the ult imates olution lies no t in t yin g in m o re  i nwa rd l y d e di cat e d p ower, bu tin  expa ndin g t h e ma rke tpla ce by  
breaking do wninte r -ju risdi ction al b ar riers . In a ny ca se , New York ener gy regulator y a ut hor it ies a n d thos e r esp onsible  elsewh e rein t h eU.S. Northeast, 
s uc h as  PJM (Pe nnsylv a ni a- N ew Jerse y- Mar ylan d )  Inte rcon n ec tion and  the N e w
E nglandPo wer Po ol , a rein va s tlybetter  shape i n ter m s of "cross-bo r der" 
coopera t io n th a n Ca lif ornia and i ts n e ighb orsi ntha t  effo rts a re be i ng made 
among vari ou s auth oriti es toward dev eloping an i n tegrated  reg i on a l 
electricity  mark et. In Cal i fornia,by co ntrast,the state ' s  focus* for  
e xam ple , in  the case ofn e w ga s- fired p owe r plant  de vel opm ent * has beento 
ensu re  d ed ic ate d sup p ly to th eCal if orn ia ma r ket al one,rath er  t h anon a 
r e gi o n al m ar ke tpla ce.  


Th e Ne w  Yo rk ISO' s new bro ad- b ased  a na lysis o f market-rest ru cturing ne ed s argues t hat therelatively stronger hea l th of i tsrefor medenvironme ntis 
"d uei n larg e part  to t he  ab i l ity o f Ne w Y or k's utilit i e s t o ent er  int o 
long -term power contra c ts. " 

What need s t o be d on e m o st ,  it  s a ys, i s to move aggre ssively to  b u il d some ofthe  m ore tha n 29,00 0 MWo f "prop osed newgeneratio nin t h e  si ting pipel ine." 
In the me a ntime ,  t he 30 ,20 0 MW o fele ctric ity Ne w  Yo rkers  usedon  a pea k day  last sum mer shouldn't be eclips ed ontoo m any  days thi s c o min g summer(giv en 
earlylon g-r angewea t her f orec a st s). Deman d, h o wever, is ex pec t e dto increase a t a n ann ual averag e ra te of up to 1.4%. 

So while New  Yor k Cit y,t he r es t of the state  an da d jacent p ar ts might 
b reathe e as y  this  year,  it co uld bea br i ef res t fr omthe fray.  Me an w hile, a  4% shortf allis  still  being 
 
help_would-be merchant_power plant investors plow_through red_tape._

"Increasing New_York's_generating capacity will_also lessen the_state's 
escalating and risky_reliance on out-of-state_sources_of electricity," the 
ISO added. "Since 1999, New York State has been unable to_cover_its reserve_
requirements_from_in-state sources." 

Not everyone agrees_with that analysis, insofar as_it argues_for circling the 
wagons inward. Some analysts believe_the_ultimate solution lies_not in tying 
in more inwardly dedicated power, but_in expanding the marketplace by 
breaking_down inter-jurisdictional barriers._In_any_case, New York energy_
regulatory authorities and those responsible elsewhere_in the U.S. Northeast, 
such as_PJM (Pennsylvania-New Jersey-Maryland) Interconnection and the New_
England Power Pool, are in vastly_better shape in terms of_"cross-border" 
cooperation_than California and its neighbors_in that efforts_are being_made 
among various_authorities toward developing an integrated regional_
electricity market. In_California, by contrast, the state's focus*for_
example,_in the case_of_new_gas-fired power_plant development*has been_to_
ensure dedicated_supply_to the California market alone, rather_than_on a 
regional marketplace. 



The New York_ISO's new broad-based analysis_of_market-restructuring needs 
argues that_the relatively stronger health of_its reformed environment is 
"due in_large part_to the_ability of New York's utilities to enter into 
long-term power contracts."_

What needs to be done most,_it says, is to_move aggressively_to_build some of_
the_more than_29,000 MW of "proposed new generation in_the siting_pipeline." 

In the meantime, the 30,200_MW of electricity New_Yorkers_used on a peak day 
last_summer shouldn't be eclipsed on too_many days this coming summer_(given_
early_long-range weather forecasts). Demand, however,_is expected to increase 
at an_annual average rate_of up to 1.4%. 

So while New_York_City, the rest of the state_and_adjacent parts might 
breathe easy this_year,_it_could be a brief rest_from the fray. Meanwhile, a 
4%_shortfall is still being