Dive Brief:
- Arizona Public Service (APS) is considering joining the California ISO's energy imbalance market, according to Argus. The utility has filed a report with state regulators indicating it could see millions in potential savings.
- While the imbalance market got off to a rough start—with federal regulators looking into the cause of price spikes—its membership is expanding with NV Energy set to join later this year and Puget Sound Energy considering joining also.
- Last week, the California system operator told FERC that the market's inability to to recognize capacity held by PacifiCorp was behind apparent energy shortages and subsequent price spikes.
Dive Insight:
The California ISO's Western energy imbalance market appears to be shrugging off its rocky start. The grid operator told regulators it has discovered the source behind price spikes that have plagued the nascent market's launch, and membership appears to be growing.
If it joins, APS believes it could save anywhere from $7 million to $18 million annually through its participation, which would allow it to carry fewer operating reserves. It could also save existing market members up to $8 million annually, the utility said.
APS serves 1.2 million customers in Arizona, and asked the consulting firm Energy and Environmental Economics to run analysis on what joining the market would mean. The firm has done similar studies for NV Energy, which will join the market later this year, and Puget Sound, which is also considering the move.
The firm also did the analysis for PacifiCorp's entrance into the imbalance market. The Portland-based company began operating its Energy Imbalance Market system in parallel with the California ISO system towards the end of last year, and earlier this month announced they had signed a memorandum of understanding with the California grid operator indicating that PacifiCorp would "explore full participation in the ISO as a Participating Transmission Owner."
