CALIFORNIA ISO MARKET NOTICE

Requested Client Action:  Mark Your Calendar

 

Date of Distribution:  March 8, 2007

 

Categories:  Grid Operation, Legal/ Regulatory, Market Operations

 

Subject:  CAISO Gas-Electric Coordination Issues

___________________________________________________

 

Summary:  The California ISO (CAISO) is concluding the previously announced schedule for stakeholder comments regarding gas and electric coordination issues.

___________________________________________________

 

Main Text:  On October 25, 2006, the Federal Energy Regulatory Commission (FERC) issued an Order in Docket Nos. EL07-1-000, et al., to consider whether the scheduling practices of independent system operators and regional transmission organizations are effectively coordinated with the scheduling of natural gas purchase and transportation transactions, so that gas-fired must-run generators are able to obtain gas during periods when gas transportation is constrained or gas prices are volatile.  The CAISO has received an extension of time until April 13, 2007 to file its response to FERC’s order.

 

The CAISO held a stakeholder meeting on January 31, 2007 to discuss the FERC Order on whether the gas and electric coordination issues discussed in that Order exist in California during emergencies or other periods of natural gas supply constraints or price volatility, and solicited written stakeholder feedback. 

 

In a Market Notice issued on February 15, 2007, the CAISO provided a schedule outlining an iterative stakeholder process to ensure stakeholder input was considered in the CAISO’s April 13, 2007 compliance filing, and again invited stakeholders to submit written comments.

 

To date, the CAISO has received only two written comments.

 

Based on the limited stakeholder feedback, and the CAISO’s on-going coordination activities with the gas and utility industries, the CAISO has determined that, at this time, no changes are necessary to the scheduling and compensation rules with respect to the gas-electric coordination issues raised in FERC’s Order.

 

The CAISO is cancelling the remainder of the scheduled stakeholder process for this initiative.

___________________________________________________

 

For More Information Contact:  Jblatchford@caiso.com. Or (916) 351-2411

 

 

 

The California ISO strives to be a world-class electric transmission organization built around a globally recognized and inspired team providing cost-effective and reliable service, well-balanced energy market mechanisms, and high-quality information for the benefit of our customers.

 

EA/ComPR/IPS/cy