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FERC approves tariff changes for APS, Puget Sound Energy EIM participation

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FERC approves tariff changes for APS, Puget Sound Energy EIM participation

FERCon April 29 conditionally signed off on tariff changes that will allow and to participatein the California ISO'senergy imbalance market.

APS,a Pinnacle West Capital Corp.subsidiary, and Puget Energy Inc.subsidiary Puget Sound Energy both intend to join the EIM on Oct. 1. The utilitiesin February separately filed proposed revisions to their respective open accesstransmission tariffs.

The EIMwas created by the California ISOand PacifiCorp as a five-minuteautomated dispatch market to enable better managing of generation resources, particularlyintermittent renewable resources, across a broader footprint of balancing authorityareas. Since its launch in November 2014, more utilities have stated their intentionto join the EIM.

joined the EIM onDec. 1, 2015. Portland General ElectricCo. has announced plans to participate in October 2017, while subsidiary intends to in April 2018.

One ofthe conditions placed on its acceptanceof APS' proposed changes (ER16-938) centered on a provision allowing external resourcesto participate in the EIM through the use of dynamic scheduling. FERC said APS hasto clarify that a potential APS EIM participating resource is not required to enterinto a commercial arrangement with the utility in order to participate via dynamicscheduling.

FERCalso gave APS 30 days to remove a requirement that an external resource qualifyas a balancing authority area resource to be eligible to participate via dynamicscheduling, and clarify that dynamically scheduled external resources are not requiredto enter into commercial contracts with the utility in order to participate in theEIM as APS EIM participating resources. In addition, the agency directed APS toaddress in a future rate proceeding certain payments and charges for CAISO operatingreserves that result from EIM transfers.

In regardto the Puget Sound Energy proposal (ER16-923), FERC gave the utility 30 days to remove a provision that wouldallocate operating reserves charges to measured demand. FERC said Puget Sound Energycan propose an alternative method for allocating the reserves in its compliancefiling or at a later date.