The California Independent System Operator Corporation (ISO) and Puget Sound Energy (PSE) announced today that the Bellevue, Wash.-based energy company will begin participating in the Energy Imbalance Market (EIM) in October 2016.
“We are pleased Puget Sound Energy is moving to take advantage of the ISO’s western regional services and benefits — which increase for all market participants as new companies enter the EIM,” said ISO President and CEO Steve Berberich. “The greater number of EIM participants means the western grid customers benefit from lower costs and enhanced reliability as our technology automatically optimizes the grid, finds the lowest cost energy to meet demand over the western region.”
In addition to the savings expected for customers of EIM’s current participants, PSE’s economic analysis indicates benefits of between $18 million to $30 million a year by taking advantage of the EIM intra-hour power scheduling and plant dispatching capabilities. Furthermore, existing EIM participants yield additional benefits of nearly $4 million annually as a result of PSE’s participation. The ISO and Portland-based PacifiCorp, which participated in the launch of EIM on Nov. 1, 2014, realized nearly $6 million in benefits combined over the first two months of its EIM participation.
“The ISO Energy Imbalance Market will help us deliver the reliability and savings that are important to our electric customers,” said David Mills, PSE’s Vice President of Energy Operations. “Our studies show that participating in the ISO Energy Imbalance Market will help us enhance system reliability and offer economic savings through lower production costs.”
Using the EIM’s real-time market allows PSE to purchase the lowest cost energy available across the West to meet their customer’s needs. It can also move lower cost energy to other EIM participants, which currently includes the ISO and PacifiCorp. Las Vegas-based NV Energy is scheduled to begin participation this October. l. By year’s end, the EIM will encompass seven western states – California, Oregon, Washington, Nevada, Utah, Idaho and Wyoming.