What is uplift and how is it allocated?
Uplift is the increased cost of generation beyond what has been scheduled by SCUC and BME. The most common cause is the dispatching of uneconomic units to provide locational security or NYISO security. The backing down of a scheduled generating unit also creates uplift as that unit is entitled to receive a Bid Production Cost Guarantee (BPCG). In addition, a generating unit may be OOM (Out of Merit) during a DMNC test resulting in uplift. [Note: The OOM designation is given to a generating unit that for specific reasons is allowed to generate either above or below its’ schedule without incurring penalties.] Locational security is usually activated in the NYC area. Due to transmission constraints, it is not always possible to import the most economic energy across the various interfaces. The local TO (Transmission Owner) is responsible for notifying the NYISO of a locational security requirement. NYISO dispatchers will decide which unit or units will be set OOM to solve for the constrai
