Update on Energy Imbalance Market and
the EIM Transitional Committee
March 2015
Page 1
Energy Imbalance Market is an important to tool
for effective use of resources around the west
• Builds on existing market:
automated dispatch resolves
imbalance & avoids congestion
• Provides situational awareness,
enhances reliability
• No critical mass required,
and no exit fees
• Easily scalable, low-cost, low
risk option for new participants
• Preserves BAA autonomy,
including compliance,
balancing, and reserve
obligations
Page 2
Estimated benefits are consistent with earlier benefit
analysis
BAA
November
December
Total
ISO
$0.65
$0.59
$1.24
PACE
$1.05
$1.26
$2.31
PACW
$1.39
$1.03
$2.42
Total
$3.09
$2.88
$5.97
• The EIM generally dispatched energy transfers in a 15-minute interval
between 80 and 120 megawatts (MW) with up to:
•
200 MW from PAC East BAA (PACE) to PACW
•
421 MW from PacifiCorp West BAA (PACW) and ISO
•
220 MW from ISO to PACW
March 2013 study by Energy + Environmental Economics (E3) for PacifiCorp and the ISO can be viewed
here: http://www.caiso.com/Documents/PacifiCorp-ISOEnergyImbalanceMarketBenefits.pdf
Page 3
EIM dispatching resources as designed to balance
real-time supply/demand across the EIM areas
15-minute energy transfers (MWH)
PACE to PACW
PacifiCorp to ISO
ISO to PacifiCorp
(+) PacifiCorp to ISO / (‐) ISO to PacifiCorp Page 9
EIM Transitional Committee: guiding objectives drive
long-term EIM structure
Prompt & direct input
Adaptable structure
Promote successful implementation
STEP 1
Stakeholder Transitional Committee
Roles:
•Advise on EIM matters
•Propose long-term EIM structure
STEP 2
Long-term
EIM structure
Page 5
Transitional Committee appointed in May 2014
1. Chair Rebecca Wagner, Commissioner, Public Utilities Commission
of Nevada
2. Stephen Beuning, Xcel Energy, Inc.
3. Tony Braun, Braun Blaising McLaughlin & Smith, PC
xxx(representing CA Municipal Utility Association)
4. Dede Hapner, Pacific Gas and Electric Company
5. Natalie Hocken, Representative from EIM Entity PacifiCorp
6. Travis Kavulla, Commissioner, Montana Public Service Commission
7. Kevin Lynch, Iberdrola Renewables
8. Mark Smith, Calpine Corporation
9. Walter Spansel, Representative from EIM Entity NV Energy
10. Robert Weisenmiller, Chair, California Energy Commission
11. Carl Zichella, Natural Resources Defense Council
Page 6
The EIM Transitional Committee is following an
iterative process
POLICY AND PLAN DEVELOPMENT
Issue
Paper
Straw
Proposal
Draft Final
Proposal
EIM TC
Board
Stakeholder Stakeholder
Input
Input
We are here
Page 7
Tentative stakeholder engagement schedule
Date
Event
January 5
Issue Paper posted
January 12
Stakeholder meeting on Issue Paper
January 26
Stakeholder comments due
March 5
EIM Transitional Committee meeting
March 19
Committee to post Straw Proposal
March 26
Stakeholder webinar on Straw Proposal
April 16
Stakeholder comments due
April 30
EIM Transitional Committee meeting
May 21
Committee to post revised or final Straw Proposal
May 28
Stakeholder webinar on revised or final Straw Proposal
June 11
Stakeholder comments due
June 25
EIM Transitional Committee meeting
August 25
EIM Transitional Committee meeting
Sept 17/18
ISO Board meeting
Page 8
Issue paper describes three models representing a
range of potential relationships
Paper outlines
•
•
•
•
The general relationship between the ISO and the EIM governing
body;
The nature and degree of the influence the EIM body should have
over EIM rules.
The nomination and selection process
Funding and resources
Central features common to each model
•
•
•
Independence of members
Process for selecting new members
Organization of state regulators
Page 9
Model
Advisory Committee
Governing Board under
Bylaws
Autonomous Separate Entity
Nomination
and
Selection
Various stakeholder sectors
identify nominees, subject to
approval by the ISO Board
Various stakeholder sectors
identify nominees, subject to
approval by the ISO Board initially
and, subsequently, the EIM board
Various stakeholder sectors and a
member of the ISO Board identify
nominees, subject to approval by EIM
Sector Stakeholders
Scope of
Authority
Advisory role only –
Make recommendations to ISO
Board about proposed tariff
changes and other EIM-related
matters
Mixture of delegated authority and
advisory role Have primary governing authority
over the portions of the ISO tariff
that address exclusively the EIM;
secondary authority (advisory role
to the ISO Board) over elements of
the tariff that affect but are not
limited to the EIM
Complete rights under Section 205 to
file changes to EIM tariff
Have full rights under Section 205 for
a free standing tariff separate from the
ISO tariff. To change the market rules,
the EIM organization would need to
file at FERC and negotiate contractual
changes with the ISO
Relationship Members have contracts with ISO Through amendment, ISO bylaws No governance relationship - ISO
and collectively serve as advisory establish role of EIM board and
would provide services to the EIM
with ISO
body to ISO Board, like the
Market Surveillance Committee
and the Transitional Committee
Resources/
Funding
reflect delegation of authority
ISO staff available to meet needs ISO staff available to meet needs
of the committee; no additional
of the committee; no additional
funding needed
funding needed
organization, such as running the
integrated market, pursuant to a
contract with the ISO
EIM organization hires staff, procures
facilities, and pays the ISO for
services under a contract.
Recover costs through a new charge
for EIM participation.
Page 10
Resources
EIM governance initiative page http://www.caiso.com/informed/Pages/StakeholderProcess
es/EnergyImbalanceMarketGovernance.aspx
EIM Transitional Committee Charter http://www.caiso.com/Documents/EnergyImbalanceMarket
TransitionalCommitteeCharter.pdf
Page 11
Questions
Contact: Stacey Crowley
Director, Regional Affairs
scrowley@caiso.com
(916) 608-7130
Page 12