New York’s “Peaker” Rule

In 2019, the New York State Department of Environmental Conservation adopted a regulation to limit nitrogen oxides (NOx) emissions from simple-cycle combustion turbines (referred to as the “Peaker Rule,”). Combustion turbines known as “peakers” typically operate to maintain bulk power system reliability during the most stressful operating conditions, such as periods of peak electricity demand. Many of these units also maintain transmission security by supplying energy within certain constrained areas of New York City and Long Island — known as load pockets. The Peaker Rule, which phases in compliance obligations between 2023 and 2025, will impact turbines located mainly in the lower Hudson Valley, New York City, and Long Island. The Peaker Rule required all impacted plant owners to file compliance plans by March 2, 2020.