A redesigned California Independent System Operator market may create speed bumps between California's grid and other Western states' transmission systems, according to some stakeholders. "The interjection of [the market redesign] in the West will alter energy flows on neighboring systems with reliability and efficiency consequences," noted Ziad Alaywan, Z Global chief executive officer. He represents a coalition of public power agencies, including the Los Angeles Department of Water & Power, the Sacramento Municipal Utility District, and the Turlock and Imperial irrigation districts. The grid operator has been fine-tuning its wholesale electricity market since the 2000-01 energy crisis. Its new market, which includes day-ahead bidding for power, is set to begin service in February. It is intended to prevent market manipulation that allegedly occurred during the crisis, as well as offering more opportunities for competitive behavior. Z Global's white paper and a similar offering from the Carnegie Mellon Electricity Industry Center on what is known as "seams" issues - for the seam between separate transmission systems - were published December 1. Different transmission control areas have different protocols and thus bump up against each other at their "seams." "The most dramatic difference arises along the border of a [regional] spot market and a traditionally organized market," according to Carnegie. "It is therefore imperative that entities on either side of any given seam coordinate operations and protocols for normal and emergency interchange." While the grid operator wouldn't comment directly, CAISO stated in its filed testimony that it agreed that seams issues exist but that the proposed market doesn't create any new seams issues. - J.A. Savage
