Governance Plan Approved for Energy Imbalance Market
To make any train run on time you need a conductor, and this week the Energy Imbalance Market (EIM) did just that as it established a new governance structure.
The EIM is a real-time energy wholesale market that automatically dispatches the lowest cost electricity resources over a large geographic area of the western United States – participating balancing authorities. The EIM launched on November 1, 2014 and includes utility territories in six states. What was the result? A savings of more than $21 million in the first eight months of operation.
EIM benefits reflect more efficient dispatch, reduced renewable energy curtailment, reduce greenhouse gas emissions in the west and less need for flexible reserves.
This week the governance over EIM related matters was updated by the EIM Transitional Committee, which consists of members from throughout the west and is chaired by Commissioner Rebecca Wagner of the Public Service Commission of Nevada.
Robert B. Weisenmiller, Chair of the California Energy Commission and member of the EIM Transitional Committee, said the governance structure approved by the Board is carefully thought out and represents the interest all current and future participants.
“The governance structure was built from feedback from stakeholders in California and in other states to be well represented in the Energy Imbalance Market,” Weisenmiller said. “I’m proud of the Transitional Committee’s work and pleased that this has been approved by the ISO Board.”
The approved governance structure includes the following attributes, among others:
- Establishment of a regionally-minded EIM governing body with delegated authority over market rules of the EIM.
- The governing body would be comprised of five members, financially independent of stakeholders.
- Nominees for the governing body would be identified by a nominating committee comprised of stakeholder representatives.
- The governing body would represent all real-time market participants’ interests, regardless of where they are located.
Learn more about the EIM by visiting this California ISO web page.