Arizona Corporation Commission to oversee Western Energy Imbalance Market
The Arizona Corporation Commission announced on Friday that Commission Chairman Doug Little will serve as the regulator on an eight-member nominating committee that will oversee board member selection for the regulation of the Energy Imbalance Market (EIM).
The new EIM will include Arizona’s largest utility company, the Arizona Public Service Company (APS), as of October 1. The market is an initiative of the California Independent Systems Operator (CAISO) and will allow members to balance systems more efficiently. To date, the market will include utilities from California, Oregon, Washington, Wyoming, Idaho, Nevada, Utah and Arizona.
“APS’s participation in the EIM will enhance the reliability of our electric grid while giving us an opportunity to purchase low cost energy from other regional generators, resulting in potential savings for Arizona ratepayers,” Little said.
Studies conducted on the EIM show that members will be able to more cost-effectively transfer power between members. It will also allow for faster and more cost-effective balancing between power generation and estimated load. It will dispatch every 15 minutes automatically, with EIM participants expected to save $45.6 million.
APS will pay a fixed fee of $970,000 for implementation into the EIM. It is expected to recoup the investment over time through savings that will result from more efficient market energy practices.
