The creation of the New York Independent System Operator (NYISO) was authorized by FERC in 1998 and launched on Dec. 1, 1999. The NYISO footprint covers the entire state of New York. NYISO is responsible for operating wholesale power markets that trade electricity, capacity, transmission congestion contracts, and related products, in addition to administering auctions for the sale of capacity. NYISO operates New York’s high-voltage transmission network and performs long-term planning.

The chronic transmission constraints in NYISO are in the southeastern portion of the state, leading into New York City and Long Island. As a result of their dense populations, New York City and Long Island are the largest consumers of electricity. Consequently, energy flows from the west and the north toward these two large markets, pushing transmission facilities near their operational limits. This results in transmission constraints in several key areas, often resulting in higher prices in the New York City and Long Island markets