California’s grid operator is proposing a relatively flat budget for 2015. The agency calls for a $500,000 increase in its revenue requirement to a total budget of $195.5 million. In outlining its proposal Oct. 9, California Independent System Operator chief financial officer Ryan Seghesio noted that fees collected from the industry would remain largely level. The increase in revenues is predicated on a projected 1.2 percent growth in the amount of electricity carried over transmission lines controlled by the grid operator. The bundled grid management charge, said Seghesio, will remain around 80 cents/MWh, at 79.9 cents in 2015 compared to 80.1 cents this year. The proposed budget is 16 percent lower than the grid operator’s 2003 budget, Seghesio noted. After being slashed following the 2000-01 energy crisis was resolved, the grid operator’s budget has grown slowly, he noted. Revenue growth has averaged 0.6 percent annually since 2008 and expenditures for operations and maintenance—which make up 83 percent of total revenue requirements— have edged up on average just 0.3 percent annually since 2010, according to the chief financial officer. Staffing has declined from 607 positions to 593, said Seghesio. Debt service in 2015 is projected to remain level at $16.9 million. The grid operator’s board is expected to adopt the 2015 budget in December.
