Federal Energy Regulatory Commission

Role of Market Role of Market Monitoring at the Monitoring at the

NYISONYISOJohn P. BuechlerJohn P. Buechler

VP – Market StructuresVP – Market Structures

FERC Open Session • Washington, D.C. • May 18, 2006FERC Open Session • Washington, D.C. • May 18, 2006

NYISO: Redesigned NYISO: Redesigned Organization Organization

(Effective November 21, 2005)(Effective November 21, 2005)

Charles GarberVP and Chief Financial Officer

Diane EganExecutive Assistant and Assistant Secretary to the Board

IA - reports for administrative purposes to Market Structures

Sandra SanfordVP, Human Resources

Garry BrownVP, External Affairs

Robert FernandezGeneral Counsel

John BuechlerActing VP, Market

Structures

Internal Audit

Board of Directors

Mark Lynch President and CEO

Ken FellVP and Chief

Information Officer

Michael CalimanoVP, Operations

--Strategic & Business Planning--Product & Project Mgmt--Market Monitoring, Analysis & Performance--Compliance & Risk Mgmt--Market & Employee Training--Customer Support

Independent Market Advisor (IMA)

IMA - advises CEO, Sr. Staff & MMAP unit

Role & Responsibilities: Role & Responsibilities: MMAPMMAP

Administration of NYISO’s FERC-Approved:Administration of NYISO’s FERC-Approved: • Market Monitoring PlanMarket Monitoring Plan• Market Mitigation MeasuresMarket Mitigation Measures

Market MonitoringMarket Monitoring• Participant Behavior & Market OutcomesParticipant Behavior & Market Outcomes• Mitigation & InvestigationsMitigation & Investigations

AnalysisAnalysis• Market Simulations & Market ImprovementsMarket Simulations & Market Improvements

PerformancePerformance• Daily Market Review & Monthly Performance ReportsDaily Market Review & Monthly Performance Reports

Interface with FERC StaffInterface with FERC Staff

Role & Role & Responsibilities: IMAResponsibilities: IMA

Advises NYISO Board, CEO & Senior StaffAdvises NYISO Board, CEO & Senior Staff • Market Design & PerformanceMarket Design & Performance• Market ImprovementsMarket Improvements

Advises MMAPAdvises MMAP • Market Design & PerformanceMarket Design & Performance• Mitigation Design & implementationMitigation Design & implementation• Regulatory FilingsRegulatory Filings

Performs Annual SOM AssessmentPerforms Annual SOM Assessment• Presents to Board, FERC & NYISO StakeholdersPresents to Board, FERC & NYISO Stakeholders

ResourcesResources MMAP Staff: 23 PersonnelMMAP Staff: 23 Personnel

• Includes 3 PhD Economists; Engineers & Includes 3 PhD Economists; Engineers & AnalystsAnalysts

Independent Market AdvisorIndependent Market Advisor NYISO Staff & Outside CounselNYISO Staff & Outside Counsel Automated ToolsAutomated Tools

• Production Software (e.g. – AMP); Off-Line ToolsProduction Software (e.g. – AMP); Off-Line Tools• Simulation Tools (e.g. – PROBE; SCUC) Simulation Tools (e.g. – PROBE; SCUC)

Manual Policies and ProceduresManual Policies and Procedures ConsultationConsultation

• Regulatory Staff & Market ParticipantsRegulatory Staff & Market Participants

Current PrioritiesCurrent Priorities

Daily Market Monitoring ActivitiesDaily Market Monitoring Activities Support of Corporate-Wide Support of Corporate-Wide

“Excellence-in-Execution” Initiative“Excellence-in-Execution” Initiative• Automation of Manual ProcessesAutomation of Manual Processes• Off-Line Systems Moved to Production EnvironmentOff-Line Systems Moved to Production Environment• Enhance Controls & ComplianceEnhance Controls & Compliance

Improvement of Analysis CapabilitiesImprovement of Analysis Capabilities• Data Storage and Accessibility Data Storage and Accessibility • Interface with Strategic PlanningInterface with Strategic Planning

Environmental IssuesEnvironmental Issues