IEEE Power & Energy Magazine - November/December 2017 - 74

BAA

Fourth
First
Second
Third
Fourth
First
Second
Third
Fourth
Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter
2014
2015
2015
2015
2015
2016
2016
2016
2016

APS

First
Quarter
2017

Total

5.98

5.23

11.21

CAISO

1.23

1.44

2.46

3.48

5.28

6.35

7.89

5.44

8.67

9.50

51.74

NVE

-

-

-

-

0.84

1.70

5.20

5.60

3.07

3.50

19.91

PAC

4.73

3.82

7.72

8.52

6.17

10.85

10.51

15.12

8.99

11.47

87.90

1.56

1.40

2.96

28.27

31.10

173.72

PSE
Total

5.96

5.26

10.18

12.00

12.29

18.90

23.60

26.16

BAA

January

February

March

Q1-2017
Total

APS

1.71

1.71

1.81

5.23

CAISO

2.15

3.17

4.18

9.5

NVE

1.07

1.31

1.12

3.5

PAC

2.74

3.84

4.89

11.47

PSE

0.41

0.41

0.58

1.4

Total

8.08

10.44

12.58

31.1

Source: CAISO

figure 2. The economic benefits of the EIM to different BAs (US$M). BAA: balancing area authority; APS: Arizona Public
Service; NVE: Nevada Energy; PAC: PacifiCorp; PSE: Puget Sound Energy.

to the California economy. The study estimated an annual net
benefit to California ratepayers of $55 million a year in 2020
(assuming the regional market would include only CAISO
and PacifiCorp), growing to a net benefit range of $1 billion
to $1.5 billion a year by 2030, assuming a regional footprint
that includes most BAs of the U.S. WI.
As of this writing, California is continuing to work with
other states on increased regional collaboration. Numerous
BAs have signed up to participate in the EIM for future years.
Due to differences in environmental policies among the states
(primarily, California's greenhouse gas cap-and-trade program), an additional component has been introduced to the
marginal price, with the greenhouse gas component added
to the traditional components of energy, congestion, and
losses for imports into California. Finally, a group of utilities-the Mountain West Transmission Group in the eastern
part of the WI-has similarly been looking at ways to participate in regional markets and, as of mid-2017, is pursuing
conversations with the SPP.

Level Playing Field in Europe
In late 2016, the European Commission published four
updated regulations and five modifications to directives col74

ieee power & energy magazine

lectively known as the "Clean Energy Plan-Winter Package." This package specifies how the European Union (EU)
and member states will meet their 2030 EU policy objectives
of a 40% reduction in carbon, 30% increase in energy efficiency, and 27% increase in renewables energy across the
heat, transport, and electricity sectors.
The broad thrust of the package in the electricity system is
based on four themes: 1) governance, 2) a level playing field
for all, 3) increased use of markets, and 4) placing the consumer at the center of the energy paradigm. In addition, there
is a move to give the European regulatory body, the Agency
for the Cooperation of Energy Regulators, oversight regarding
the introduction of capacity payment mechanisms. There is a
requirement to perform a risk assessment on the need for such
a scheme, based on EU "security of supply" concerns.
For a level playing field, there is a directive to remove
priority dispatch from all new renewables (and regulators
have called for this removal for existing units as well), phase
out supports (or at least move them to market premiums),
and obligate all participants to have full balancing responsibility. This is a material change to the treatment of renewables. It places increasing reliance on market mechanisms to
meet long-term policy objectives and also seeks increased
november/december 2017
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