Electric utilities must “balance” their systems in real time to ensure that generation matches the load. The Energy Imbalance Market (EIM) helps in this balancing by making it easier and cheaper to transfer power to and from members.
Arizona Commission Chairman Doug Little is the sole regulator on an eight member nominating committee that is selecting board members to oversee an EIM that will include Arizona’s largest utility, Arizona Public Service Company (APS), starting October 1.
The EIM is part of the California Independent Systems Operator (CAISO) and until recently had only California based members. In addition to APS, utilities in Oregon, Washington, Utah, Nevada, Idaho and Wyoming have joined or are considering joining the EIM. The EIM will be governed by an independent board to ensure the interests of all the participating states and utilities will be considered, according to the Arizona Corporation Commission.
Since California’s EIM expanded the real-time market to balancing areas outside of California, there has been a benefit of $45.6 million in savings to the participants, claims the Commission. The EIM is able to select the most economic resources by automating dispatch every fifteen minutes and every five minutes across the EIM areas. It also helps address the issue of intermittent renewable energy generation on Arizona’s electric grid.
APS will pay a fixed implementation fee of $970,000 to incorporate into the Energy Imbalance Market (EIM).
The selection committee is made up of EIM stakeholders including the Current EIM Entities, Transmission Owners, Market Generators, Public Utilities, and the Body of State Regulators. Chairman Little represents the Body of State Regulators which includes regulators from all the participating states.