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NYISO Floats Carbon Pricing Plan

May 212018

NYISO floated a carbon pricing proposal that would subject suppliers inside the market to carbon charges. The proposal focuses only on the process of incorporating the cost of carbon emissions into the wholesale market; setting the price would be another process altogether. Under the plan, internal suppliers would be subject to charges “equal to the product of their point-of-production carbon emissions and the applicable per-unit carbon price." The suppliers, including self-scheduled resources, would report emissions of their supply fleet. The ISO would determine the carbon price depending on whether internal physical suppliers were covered by the Regional Greenhouse Gas Initiative. Suppliers covered by the regional trading market would be charged a carbon price equal to the gross social cost of carbon, minus the most recently posted quarterly carbon allowance price.