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New System Allows Cal ISO To Purchase Power Automatically When Needed

  •  Bob Moffitt 
Monday, November 10, 2014 | Sacramento, CA | Permalink
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California ISO / Facebook
 

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During particularly hot weather, Cal ISO has been right on the edge of not having enough power to meet demand. The operator had to order power at least a day ahead of an expected spike in power consumption.

But new system called an "energy imbalance market," is changing that. The system is a partnership between Cal ISO and PacifiCorp Power, which is based in Oregon.

Don Fuller with Cal ISO says the operator and power company can now automatically purchase the cheapest available power from each other when it's needed.

"It could fluctuate from hour-to-hour," says Fuller. "It could be that we've got a couple hundred megawatts flowing into California one hour and it could switch around the next hour under this approach."

PacifiCorp Power supplies power to six western states.

NV Energy from Nevada plans to join the market next year.

The new system is expected to cost as much as $6 million to establish with at least $29 million in annual savings.

An independent monitor is tasked with making sure there is no collusion or price-fixing among power suppliers.

    Related Stories

  • Andrew Nixon / Capital Public Radio

    Study: Cal-ISO, PacifiCorp Electric Transmission Grid Merger Saves Money

    Tuesday, October 13, 2015
    The creation of a regional electric transmission grid for six western states, including California, has moved a step closer to reality.

 Cal ISONV EnergyPacifi-Corp

Bob Moffitt

Sacramento Region Reporter

Bob reports on all things northern California and Nevada. His coverage of police technology, local athletes, and the environment has won a regional Associated Press and several Edward R. Murrow awards.   Read Full Bio 

 @BobMoffitt Email Bob Moffitt

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