Nov 8 California's power grid operator approved
a new market design that will increase reliability and reduce
costs by integrating generation resources from utilities outside
the state to help balance the growing use of intermittent
Nevada power company NV Energy Inc said in a release
Thursday it plans to seek permission from Nevada regulators to
join California's new "energy imbalance market" after completing
studies on the benefits of the new market.
The California Independent System Operator, which operates
the power grid for much of the state, said the energy imbalance
market, which its board of governors approved on Thursday, will
allow power companies, known as balancing authorities, from
across the West to participate in its real-time energy markets.
PacifiCorp, a unit of U.S. conglomerate Berkshire Hathaway
Inc's MidAmerican Energy Holdings unit, was the first
company to partner with the California ISO on the energy
MidAmerican Energy is also in the process of buying NV
Energy and hopes to complete the deal in the first quarter of
PacifiCorp has been working with the ISO to implement the
new market, which is expected to go live on Oct. 1, 2014, the
PacifiCorp controls two balancing authorities serving more
than 1.8 million customers in parts of six states. The company
operates as Pacific Power in Oregon, Washington and Northern
California, and as Rocky Mountain Power in Utah, Wyoming and
The ISO said the new market will match energy needs with the
lowest cost resources in all participants' service areas, which
is expected to reduce costs while increasing reliability.
Moreover, by having PacifiCorp and possibly NV Energy join
the energy imbalance market, the California ISO said all of the
companies will have access to all of their generation to help
keep their grids in balance as the number of intermittent
renewable resources like wind and solar power increase.
Without an energy imbalance market, the ISO said operators
generally must rely on generation assets within their service
area for any last minute balancing.
The biggest power companies participating in the California
electric market include units of Edison International,
PG&E Corp, Sempra Energy, NRG Energy Inc
, Dynegy Inc and AES Corp.