FERC approves implementation for ISO-PacifiCorp energy imbalance market

CAISO-PacifiCorp Energy Imbalance Market gains FERC approval via an Implementation Agreement, including a $2.1 million startup fee, revised market design, extended stakeholder process, and an unchanged October 2014 go-live to improve dispatch and reserves.

The Federal Energy Regulatory Commission FERC has approved the implementation agreement between the California Independent System Operator Corporation ISO and PacifiCorp that establishes the scope and schedule for a variety of tasks the parties will undertake to launch an energy imbalance market by October 2014.

“We find that the Implementation Agreement is just, reasonable, and not unduly discriminatory or preferential. Accordingly, we will accept the Implementation Agreement, effective July 1, 2013, as requested,” FERC said in the ruling.

Among its provisions, the implementation agreement sets out procedures for PacifiCorp to pay the ISO a $2.1 million fixed start-up fee to enable PacifiCorp to participate in the ISO’s existing energy imbalance market. The implementation agreement was filed with FERC on April, 30, 2013 as part of sweeping market changes underway.

The ISO also issued yesterday July 2, 2013 a revised “straw proposal” that sets forth the proposed structure and rules for operation of the new market design for the energy imbalance market. The market design reflects changes made in response to stakeholder feedback regarding earlier versions. Among the changes are extensions to the time external parties will have to review and offer comments to the market design rules before they are finalized and submitted to the ISO Board of Governors to consider in November 2013. The revised market design proposal and adjustment to the stakeholder process does not affect the planned October 2014 “go-live” date for the EIM.

The ISO and PacifiCorp announced a partnership in February 2013 to add PacifiCorp’s two balancing authorities covering portions of six western states to the existing EIM, a western energy market operated by the ISO in California. The EIM is intended to reduce operational expenses for both parties through Western grid integration and more efficient dispatch of resources within and between balancing authorities, the ability to share and therefore reduce the need to hold flexibility reserves, and reduced curtailment of renewable generation sources.

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