California ISO Files Emergency Action With FERC to Deal With Electricity Supply Crisis.News Editors/Energy Writers FOLSOM, Calif.--(BUSINESS WIRE)--Dec. 8, 2000 While grappling with another Stage Two Emergency today, the California 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. ) is taking swift action to deal with a critical shortage of bids in the ISO market as well as serious underscheduling of electricity in the forward markets. The proposed market changes create the incentive to sell power in existing markets and allow the ISO to compete better for regional energy, which is in short supply throughout the western United States Noun 1. western United States - the region of the United States lying to the west of the Mississippi River West Santa Fe Trail - a trail that extends from Missouri to New Mexico; an important route for settlers moving west in the 19th century . This afternoon, the ISO filed an emergency tariff tariff, tax on imported and, more rarely, exported goods. It is also called a customs duty. Tariffs may be distinguished from other taxes in that their predominant purpose is not financial but economic—not to increase a nation's revenue but to protect domestic Amendment 33 filing with the Federal Energy Regulatory Commission The Federal Energy Regulatory Commission (FERC) is the United States federal agency with jurisdiction over electricity sales, wholesale electric rates, hydroelectric licensing, natural gas pricing, and oil pipeline rates. (FERC FERC Federal Energy Regulatory Commission FERC FEMA Emergency Response Capability ). Commencing at 3:00 p.m. today Friday, December 8, 2000, the California ISO will implement a $250 "soft cap" on the ISO's Real-Time Energy Market similar to that proposed by FERC in its November 1 Order Proposing Remedies for California Wholesale Electric Markets (93 FERC 61,121). Analogous analogous /anal·o·gous/ (ah-nal´ah-gus) resembling or similar in some respects, as in function or appearance, but not in origin or development. a·nal·o·gous adj. to the soft cap proposed by FERC, Energy bids prices in excess of $250/MWh will no longer be rejected by the ISO's computerized computerized adapted for analysis, storage and retrieval on a computer. computerized axial tomography see computed tomography. scheduling system but, instead, will be evaluated in price merit order. The California ISO has recently been placed in the position of having to negotiate prices for power in real-time and is finding it increasingly difficult to manage these negotiations while at the same time balancing supply and demand; causing significant risk to the California ISO's ability to maintain reliable control of the power grid. The ISO will no longer negotiate prices in real-time. To the extent the ISO issues dispatch A dispatch or dispatches can refer to:
The current $250 price cap in 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. Service capacity bids is unaffected. Also, the market clearing prices for Ancillary Services and Imbalance imbalance /im·bal·ance/ (im-bal´ans) 1. lack of balance, such as between two opposing muscles or between electrolytes in the body. 2. dysequilibrium (2). Energy will continue to be calculated and posted up to the $250 soft cap. Amendment 33 proposes three key elements: 1. Implement a "soft cap" of $250/MWh for Imbalance Energy. This soft cap would limit market clearing prices to $250/MWh, but would allow market participants to submit bids over $250 if they submit verifiable costs. 2. Allocate the costs for energy purchases above the soft cap to Scheduling Coordinators who rely on the ISO's real-time energy purchases to meet their loads, rather than buying their own supplies in the forward markets; and 3. Impose penalties on Participating Generators that fail to comply with ISO dispatch instructions. Amendment 33 is posted on the ISO's website at www.caiso.com under FERC FILINGS on the home page. The ISO has seen a dramatic increase in costs for the power it buys in real time. For the first five days of December we averaged approximately $5 million per day. However, on December 5th we paid $36 million, December 7th $81 million. Failure to take action now would have the local utilities and ultimately their customers continue to face these extraordinary costs. The California ISO is charged with managing 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 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 California 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 12,500 circuit mile "electron highway." Teleconference for More Information When: Friday, December 8, 2000 at 3:30 p.m. PST Phone: 800/374-1387 Passcode: energy |
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