CAISO Asked to Bite Off Less in its Market Redesign

By Published On: October 14, 2005

The California Independent System Operator faced complaints this week that the timing of its proposed market overhaul is overly ambitious and risky. An unusual mix of stakeholders stated in an October 10 letter to the CAISO board, “[W]e have a sincere belief that the CAISO is imposing unnecessary risk through its pursuit of a multitude of major structural changes by February 2007.” It noted, however, it supports much of the grid operator’s proposed market redesign. The letter was from the California Manufacturers and Technology Association, the California Large Energy Consumers Association, the Sacramento Municipal Utility District, Strategic Energy and Coral Power. The group is urging the grid operator to prioritize and phase in its market redesign. It specifically asks that it first address infeasible scheduling and intra zonal congestion management, which they consider “the most pressing design deficiencies.” New generations and transmission additions, they assert, has reduced intrazonal congestion, and CAISO should, therefore, focus less on market rule changes and far more on a “deliberate and careful market evolution.” CAISO did not respond to requests for comments before press time

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