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For NYPA Business Customers

OPTION 3b: Capacity & Energy - High Yield

Capacity & Energy – High Yield provides the same program advantages as Option 3a but carries the risk of a penalty in exchange for higher capacity payments.

Capacity & Energy incorporates the NYISO's Special Case Resources Program (SCR). Capacity programs are a key component to keep electric power flowing in New York State, especially during periods of high electric demand.

Capacity & Energy is a partnership between NYPA, the participant, the NYISO and Con Edison. This option is appropriate for customers throughout New York State with the capability of providing load reductions for payment during the summer, the winter, or throughout the year.

Participants in this option that are located in Con Edison service territory may also be eligible to participate in Con Ed's Distributed Load Relief Program and have the potential to earn additional bonus incentive payments.

Option 3b
REQUIREMENTS Minimum KW
REQUIREMENTS Minimum KW	Minimum of 10 kW (must be measurable)
Curtailment method	On-site generation and/or interruptible loads
Permitting	Generators require proper permitting by NYS DEC and applicable local permitting requirements
Location	New York State
Curtailment period	January 1st – December 31st, any day, any hours. Customers can enroll based on Summer (May - October) and Winter (November - April) capability periods.
INCENTIVE	Capacity Payments: For the facility's pledged capacity, 95% of the NYISO Monthly auction clearing price for each month enrolled. Energy Payments: For verified performance by the facility during the greater of $0.50/kWh or 100% of the market price during each hour of the event. The customer will also be paid 100% of the market price for participating in mandatory one-hour tests. Bonus Payments: If participating facility is in Con Ed service territory, may be eligible for participation in Con Ed's Distributed Load Management Program (DLMP). Additional payments can range from $2-5/kW-month depending on the facility's location and participation. Payment will be made at the end of each capability period, provided that NYPA has been paid by or received a credit from NYISO and/or Con Ed.
NOTIFICATION	Two hour notification of activation with a 21-hour day-ahead advisory alert
NUMBER OF EVENTS	Unlimited
DURATION OF EVENTS	Min = 1 Hour Max = Unlimited
DERATING	If the participant is unable to reduce its full committed amount during four consecutive hours of all events (plus the mandatory one-hour test), it may be subject to a derating adjustment, which could limit the potential capacity payment in future Capability Periods.
PENALTIES	Deficiency Penalty – If the participant does not demonstrate its full committed amount for one full hour during an event (or test), it may face a penalty of 1.5 times the spot market price for the amount of the capacity found deficient. Any penalties assessed by the NYISO will be passed through to the participant.
MONITORING & VERIFICATION Method
MONITORING & VERIFICATION Method	Review of hourly interval metering data will validate performance
Required Equipment	Installed integrated hourly metering device
Cost of Equipment	Participant is responsible for cost of installation of metering equipment (if necessary)