By Robert Mullin

The Western Energy Imbalance Market featured prominently in two proposals approved by the CAISO Board of Governors during its Dec. 15 meeting.

One measure will enable more CAISO market participants to meter their own resource performance data and submit it to the ISO for billing. The measure was proposed largely to help reduce costs for participating in the ISO’s markets, according to a CAISO memo to the board.

“Metering is a significant cost for market participants both in our base market and the Western Energy Imbalance Market,” CAISO CEO Steve Berberich said. “Our goal is to reduce the barriers of entry to [the EIM], and metering is part of that.”

CAISO currently obtains settlement-quality meter data through two different processes, depending on the type of resource. In one process, the ISO directly polls a resource’s meter and performs the validation, estimation and editing procedures necessary to achieve settlement. In the other, a scheduling coordinator is authorized to perform those settlement functions itself and submit the results to the ISO.

The proposal approved by the board extends eligibility for scheduling coordinator metering to certain resources that are currently required to be metered by the ISO.

Eligibility will now be open to energy- or ancillary services-only generators, distributed energy resources operating under a participating generator agreement and “intraties” — links between two utility distribution company service areas that can function as a proxy resource for market purposes.

The change will allow market participants to avoid the costs associated with using a CAISO-approved meter, meter reprogramming, inspection by an authorized inspector and the telecommunications equipment needed for the ISO to poll the data.

Scheduling coordinators applying for self-metering will be required to submit a settlement-quality meter data plan for all resources they represent to ensure accuracy in settlements.

That provision will apply to all new resources entering the market, regardless of resource type. It will also cover any new ISO resources that were previously EIM resources not subject to the requirement.

But the data plan requirement will not apply to scheduling coordinator metered resources already operating in the market.

“Existing market participants will have no additional requirements imposed on them as a result of this proposal,” said Tom Flynn, CAISO manager of infrastructure policy and development.

The measure also creates some uniformity in reporting by requiring all new generators in the ISO or EIM to submit meter data in five- or 15-minute intervals. Under current practice, ISO resources can choose break down their data submission into five-, 15- or 60-minute intervals, while EIM participants are restricted to five-minute reporting.

“For EIM participating generators, this represents a potential cost savings by avoiding the need to reprogram existing meters already capable of submitting meter data in 15-minute intervals,” the ISO said.

Kristine Schmidt, chair of the EIM governing body, expressed appreciation for the ISO’s revised approach to metering.

“This is very important for our EIM entities who have a significant number of meters that would otherwise have to be changed out,” Schmidt said.

“This seems like a win-win all around,” ISO board member Angelina Galiteva said in voting for the proposal. “This one is easy.”

Guidance Document Approved

The board also voted to approve the EIM’s “guidance document,” a set of procedures outlining how ISO staff should interact with EIM representatives and participants. The document sets out the timeframes in which CAISO staff will notify the governing body about ISO initiatives and explains the processes by which governing body members and EIM participants can provide feedback on proposed policy changes that affect the market.

“What the guidance document does is take all those rules — and establishes a process for implementing them,” said Dan Shonkwiler, CAISO general counsel.

Most significantly, the document provides solutions to the overlapping authority between the ISO board and the EIM governing body resulting from the EIM’s delegation of a portion of its authority over Federal Power Act Section 205 filings to the ISO. (See EIM Leaders OK Governance ‘Guidance’ Proposal.)

While the EIM governing body voted earlier this month to approve the guidance document, CAISO’s Tariff requires the board to formally approve any proposals — including those solely affecting the EIM — that alter the Tariff.

“I think this is an important step forward,” board member David Olsen said. “It really helps to clarify the scope of responsibility of the EIM board.”