NYISO carbon pricing proposal

The New York Independent System Operator has released a Carbon Pricing Straw Proposal, which would reflect the cost of carbon emissions in wholesale energy market offers via a “carbon charge.”  The Proposal also considers carbon charges on electricity imports into NYISO, outlines a methodology for returning carbon charge “residuals” to consumers, and contemplates minor changes to NYISO’s capacity market and transmission planning processes. An economic impact analysis found that the carbon price may spur faster access to sufficient revenue certainty, particularly incentivizing downstate generation.