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California Energy Markets / This Week
[CEM 1335 / May 22, 2015]
Energy Imbalance Market Will Span Eight States as Arizona Public Service Prepares to Join
The Cal-ISO-run energy imbalance market gained a powerful participant with the planned entry of Arizona Public Service. APS brings a whopping 2,500 MW of transmission capacity between it and Cal-ISO. Benefits to APS of joining the imbalance market are expected to be up to $18 million a year, and other EIM participants will see additional benefits of up to $6.5 million a year with the entry of APS. The EIM now includes Cal-ISO and PacifiCorp, with 400 MW of transmission capacity. NV Energy, with 1,500 MW of transmission capacity, is expected to join this October, followed by Puget Sound Energy and APS in October 2016.
CPUC Approves Carlsbad Deal, but Commissioner Questions Legality
The CPUC approved San Diego Gas & Electric's deal for a gas-fired peaker in Carlsbad. But the fight will likely continue as environmental and ratepayer advocates question the process involved, saying Carlsbad was a done deal from the start and the need for the 500 MW peaker wasn't supported by the evidence-a point also raised by Commissioner Catherine Sandoval. Cal-ISO, SDG&E and Carlsbad owner NRG argued that the San Diego region could face a reliability risk in 2018 after once-through cooling units retire.
IID Poised to Take Legal Action Against Cal-ISO to Resolve Maximum Import Issue
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The Imperial Irrigation District announced May 12 it is ready to take legal action against Cal-ISO due to unresolved concerns about the deliverability of generation resources in the IID balancing-authority area. IID asserts that Cal-ISO's allocation of maximum import capability places renewable-energy projects that connect to the IID grid at a competitive disadvantage, at the cost of local jobs and economic development. The public utility plans to initiate formal proceedings before Cal-ISO, and a lawsuit if need be.
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