FERC to investigate CAISO energy imbalance market over price spikes
Utility Dive reported recently on the successes of the California Energy Imbalance Market’s first few months in operation, but now FERC is looking at the market for what it says is enhanced price volitility.
California’s grid operator requested FERC extend for a year a waiver that allows more flexibility to setting the marginal economic bid, but regulators have rejected that idea.
CAISO “failed to establish that the imbalance energy price spikes are continuing to occur primarily as a result of the transitional issues it identifies,” FERC said in its March 16 order, “and therefore has not shown that waiving the scarcity pricing provisions for a full year is responsive to the issues causing the price spikes.”
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