California ISO Board of Governors Approves Lowering Price Caps Temporarily; Concurrent to Looking for Permanent Solutions that Lead to Eliminating the Need for Price Caps.Business Editors/Energy Writers FOLSOM Fol·som adj. Of or relating to a culture that flourished in western North America east of the Rocky Mountains during the late Pleistocene Epoch, notable chiefly for the use of grooved, leaf-shaped flint projectile points. , Calif.--(BUSINESS WIRE)--June 29, 2000 The California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). Independent System Operator (California ISO (1) See ISO speed. (2) (International Organization for Standardization, Geneva, Switzerland, www.iso.ch) An organization that sets international standards, founded in 1946. The U.S. member body is ANSI. ) Board of Governors took action last night, June 28, 2000, to temporarily reduce price caps in the ISO real-time 1. real-time - Describes an application which requires a program to respond to stimuli within some small upper limit of response time (typically milli- or microseconds). Process control at a chemical plant is the classic example. , ancillary Subordinate; aiding. A legal proceeding that is not the primary dispute but which aids the judgment rendered in or the outcome of the main action. A descriptive term that denotes a legal claim, the existence of which is dependent upon or reasonably linked to a main claim. services, and intra-zonal congestion The condition of a network when there is not enough bandwidth to support the current traffic load. congestion - When the offered load of a data communication path exceeds the capacity. management markets from $750 per megawatt meg·a·watt n. Abbr. MW One million watts. meg  a·watt to $500
per megawatt effective July 1, 2000 through October 15, 2000. In the
same motion that passed 16-4, with 4 abstentions, the Board voted to
investigate the factors contributing to the lack of a workably
competitive market, and identify the changes in market rules and
operations which will eliminate the need for market price caps.
The decision to temporarily lower the price caps was made with the following provisions:
a. The Board recognizes that this adjustment in the price cap may
lead to difficulties meeting summer 2000 loads and that such
difficulties could constitute a basis for an emergency Board of
Governors Meeting;
b. The two summer 2000 trial load programs will be exempted from this
change in price caps;
c. ISO Management shall work with the responsible agencies and the
legislature to streamline and accelerate the construction of power
plants and transmission lines and to eliminate constraints to
hedging opportunities for the utility distribution companies;
d. ISO Management shall urge generation and load to explore
opportunities to enter into forward contracts;
e. ISO Management shall reduce its purchases of replacement reserves
and cap capacity payments at $100;
f. To the extent permitted by law, regulation and pre-existing
contract, ISO Management shall direct generators to bid in all
their capacity when system load exceeds 38,000 megawatts.
The California ISO is chartered by the state to manage the flow of electricity along the long-distance, high-voltage power lines that make up the bulk of California's transmission system. The not-for-profit Not-for-profit An organization established for charitable, humanitarian, or educational purposes that is exempt from some taxes and in which no one in profits or losses. public-benefit corporation assumed the responsibility in March 1998 when California opened its energy markets to competition and the state's investor-owned utilities turned their private transmission power lines over to the ISO to manage. The mission of the California ISO is to safeguard the reliable delivery of electricity, facilitate markets and ensure equal access to a vast 12,500 circuit miles of "electron highway". |
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