New York Independent System Operator Inc. (NYISO), which governs the state's bulk electricity grid, said it believes there will be adequate electric capacity to meet the state's needs through the annual winter peak in demand.

Meanwhile, the nonprofit said grid operators and electric system planners were "paying increased attention to natural gas as its use in electric generation expands," adding that coordination was growing between gas and electricity suppliers (see Daily GPI, Dec. 11a; Dec. 11b).

NYISO said it forecasts the peak demand during the 2013-2014 winter season will reach 24,709 MW, a 123 MW (0.5%) decrease from the previous winter forecast of 24,832 MW, and an 832 MW (3.3%) decrease from the state's record demand of 25,541 MW, which occurred on Dec. 20, 2004.

NYISO said generation capacity this winter will be 40,196 MW, with an additional 1,063 MW of net external capacity purchased and secured for the season. Combined, the capacity resources are 67% above the forecast peak demand of 24,709 MW. NYISO said installed capacity for the winter season would be 28,910 MW, in accordance with state regulations.

On natural gas, NYISO said that besides its use in power plants, the fuel "is widely relied upon as a heating fuel throughout New York and the northeastern United States. As a result, the gas-electric coordination requires particular attention during the winter heating season. Disruptions in the supply or delivery of natural gas can affect the ability of gas-fueled generation to provide power, which could impact electric system reliability.”

NYISO said natural gas supplies 55% of the state's generating capacity, although 47% of generating capacity is from dual fuel units that can also accept oil as a source fuel.