Power system security and reliability aspects under SMD: the New York experience

The challenge of restructuring in the electricity industry is the creation of competitive markets while at the same time maintaining system reliability. The two are interrelated and that is what makes electricity restructuring like that of no other sector in the economy. Under the existing ISOs/RTOs, as well as it is intended under SMD, security and reliability considerations are inextricably intertwined with market systems that are used to commit and dispatch the power system, and with market power considerations. New York is a case in point where SMD has already been achieved and even surpassed when it is considered that reliability rules are mandatory for the NYISO and all its market participants.