The California Independent System Operator Corporation (California ISO) board of governors authorized the ISO to move forward with negotiating a formal agreement with PacifiCorp for a joint real-time energy imbalance market (EIM).
The ISO and PacifiCorp announced the potential EIM partnership last month and explained it will optimize available energy supplies by providing frequent and automatic dispatching that takes into account resources across the entire EIM region.
Without an EIM, only generation assets within each balancing authority can be used to cover short-term gaps in generation resources. The EIM could become operational in October 2014.
The EIM would be facilitated by the ISO. PacifiCorp, which controls two balancing authorities covering portions of six states, including part of Northern California, is not joining the ISO and would maintain control of its assets and responsibilities for serving its customers. The combined savings are estimated to range from $21 million - $129 million by 2017.
The EIM negotiations now given the green light do not preclude other similar discussions with industry groups in the West and both parties remain supportive of efforts to broaden participation in this or similar regional energy imbalance markets in the future.
The California ISO provides open and non-discriminatory access to one of the largest power grids in the world. The vast network of high-voltage transmission power lines is supported by a competitive energy market and comprehensive grid planning. Partnering with about a hundred clients, the nonprofit public benefit corporation is dedicated to the continual development and reliable operation of a modern grid that operates for the benefit of consumers.