FERC Accepts CAISO Energy Imbalance Market; PacifiCorp First Participant
The Federal Energy Regulatory Commission today conditionally accepted California Independent System Operator Corporation’s (CAISO) proposal to implement an Energy Imbalance Market (EIM) that will allow neighboring balancing authorities to participate in its real-time market for imbalance energy. In a related order, FERC conditionally accepted in part revisions to PacifiCorp’s open-access transmission tariff to reflect the utility’s participation in the market.
The EIM proposal was the result of an extensive stakeholder effort in the West. It will allow participants to buy and sell five-minute real-time energy to meet energy imbalance needs through a market-driven regime built on CAISO’s existing real-time market.
A study by CAISO and PacifiCorp of the benefits from an energy imbalance market for their balancing authority areas projected annual consumer benefits of up to $129 million from economic efficiencies, improved renewable integration and increased reliability.
Participation in the EIM is voluntary, and CAISO will not assume operational control over the transmission facilities in the participating balancing authorities, except to the extent a transmission owner may have separately placed them under CAISO’s control.