New Initiative: Import Bid Cost Verification; Issue Paper and Straw Proposal, Call 5/16/19
The California ISO has launched a new initiative called Import Bid Cost Verification, and will hold a public stakeholder web conference on May 16, 2019 to discuss the issue paper and straw proposal for this initiative.
The objective of the Import Bid Cost Verification initiative is to ensure energy prices continue to reflect the marginal cost of supply when those prices exceed $1,000/MWh, and to ensure intertie offer rules are consistent with ISO’s internal bidding rules by developing reasonable cost-verification measures for intertie offers above $1,000/MWh. In 2016, the Federal Energy Regulatory Commission (FERC) required Independent System Operators (ISO)/Regional Transmission Organizations (RTOs) to raise energy bid-caps from $1,000/MWh to $2,000/MWh, and ensure internal supply offers above $1,000/MWh are cost-justified. FERC did not require the same treatment for suppliers that submit intertie offers, but it was open to individual ISO/RTOs
developing and justifying their own requirements for intertie offers above $1,000/MWh. This initiative is therefore intended to develop reasonable cost-verification measures for intertie offers above $1,000/MWh.
A web conference will be available for stakeholder convenience. In addition, the call will be recorded and the video file posted on the initiative webpage for a limited time. The recording is for informational and convenience purposes only, and any related transcriptions should not be reprinted without ISO’s permission.