The California ISO (Cal-ISO) on Feb. 24 said that it and the Balancing Authority of Northern California (BANC), acting on behalf of its member, Sacramento Municipal Utility District (SMUD), signed an agreement to participate in the Cal-ISO’s western Energy Imbalance Market (EIM) starting in April 2019.
BANC, a joint powers agency whose members include the Modesto Irrigation District, the City of Redding, the City of Roseville, SMUD, the City of Shasta Lake and Trinity Public Utilities District, announced last October that it would begin negotiations on behalf of its members to develop the EIM implementation agreement with the Cal-ISO, according to the statement.
SMUD will be the first BANC member to join the EIM, which enables participating utilities to balance supply and demand within their respective service areas in real-time by scheduling power deliveries every 15 minutes with five-minute power plant dispatching, the Cal-ISO said.
Efficiencies stemming from the EIM have led to savings totaling nearly $142m since the market was launched in November 2014 through the end of 2016, the Cal-ISO said.
According to the implementation agreement with BANC/SMUD, which the Cal-ISO said it will file with FERC, not all of the entities within the BANC balancing authority area, including the Western Area Power Administration (WAPA) are able or in a position to participate in the EIM at this time. BANC and the Cal-ISO intend to pursue a phased approach to implementation beginning with SMUD – referred to as “Project Phase 1” – and to continue discussions in parallel with the Cal-ISO regarding a subsequent phase or phases for additional BANC member(s) and/or WAPA participation, the agreement noted.
Among other things, the agreement also noted that BANC is to pay the Cal-ISO a fixed fee of $350,000 for costs incurred by the Cal-ISO to implement the Project Phase 1, subject to, for instance, completion of certain milestones.
Utilities participating in the EIM now include PacifiCorp, NV Energy, Puget Sound Energy and Arizona Public Service, the Cal-ISO said in its statement, adding that other utilities that have formally agreed to join the EIM include Portland General Electric on Oct. 1, Idaho Power on April 1, 2018, and Seattle City Light on April 1, 2019. Mexican grid operator El Centro Nacional de Control de Energía Baja Norte and the Los Angeles Department of Water and Power have announced their interest and are exploring participation in the market, the Cal-ISO said.