Update on CAISO / PacifiCorpEnergy Imbalance Market

Presentation to WECC Market Interface Committee

March 25, 2014

Jim Price, Senior Advisor, Market Development & Analysis, CAISO

What is the Energy Imbalance Market?

• Leverages existing CAISO market, for financial benefits at low cost & with low risk– Starting from forecasted load and balanced generation, EIM’s

security constrained unit commitment and economic dispatch:• Automatically dispatch least cost resources to solve imbalances, • Avoid congestion.

• Enhances reliability with improved situational awareness

• Captures geographical diversity of load and resources

• Potentially reduces flexible reserve requirements

• Provides easy entry/exit for EIM participation– No critical mass – each participant enters when they are ready– New participants pay their way through a front end charge based

on size, and ongoing charges based on participation.

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Scale of EIM in the West is growing

PacifiCorp: FERC approved implementation agreement June 20131.7 million customers 9,500 MW peak demand10,600 MW generating capacity

NV Energy: announced intent Nov. 20131.2 million customers8,148 MW peak demand5,815 MW generating capacity

CAISO: existing market11.4 million customers50,280 MW peak demand58,246 MW generating capacity

CAISO is working with other interested parties

EIM implementation and stakeholder processes are in progress

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Implementation agreement

System testing market simulation

2013 2014

FERCreview

Implementation work

CAISO filed

2/28/2014,

PacifiCorp filed

3/25/2014

FERCreview

Go live 10/1/2014

tariff language

Process Merger

CAISO Board

authorization 11/8/2013

FERC acceptance

Filing 4/30/2013

CAISO Board authorization

3/20/2013

FERC acceptance 6/28/2013

CAISO & PacifiCorp EIM stakeholder processes

CAISO Stakeholder meetings:4/11/2013 – Folsom6/6/2013 – Folsom7/9/2013 – Phoenix

8/20/2013 – Portland9/30/2013 – Folsom

Market simulation testing begins 7/8/2014

Guiding objectives for governance drive toward a long-term independent EIM

Independent EIM structure

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Stakeholder Transition CommitteeNominee list posted 3/6/2014, Board selects committee 5/28-29

• Roles: advise on EIM matters, propose independent EIM structure

• Sectors: investor owned utilities, publicly owned utilities, generators and marketers, alternative energy providers, EIM participants, government agencies, public interest entities

• Open meetings, CAISO staff support, no compensation

Prompt & direct input

Adaptable structure

Promote successful implementation

STEP 1 STEP 2

More information is available

• Briefings to MIC 7/18/2013 & 10/24/2013, to UFAS 1/8/2014 (see WECC web site)

• Computer based training:“Introduction to the Energy Imbalance Market”

– http://www.caiso.com/Documents/Markets%20training/Energy%20imbalance%20market

• CAISO EIM stakeholder process– http://www.caiso.com/informed/Pages/StakeholderProcesses/EnergyImbalanceMarket.aspx

–Includes proposals, benefit assessments, tariff development, etc.

• PacifiCorp EIM information– http://www.pacificorp.com/about/eim.html

–Includes fact sheets, memorandum of understanding, link to OASIS for stakeholder process, etc.

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