July 1, 2016

 

 

Resent to communicate the delay in the use of the ICE gas prices pending FERC approval.

 

 

Requested Client Action Action Date

Categories

Market Rules and Market Design

System Operations

 

 

Resend: Phase 2 Aliso Canyon Initiative Production Activation 7/6/16

 

Summary

The California ISO will activate Phase 2 of the Aliso Canyon Gas-Electric Coordination initiative on effective trade date July 6, 2016.  The ISO will delay the use of the Intercontinental Exchange gas prices pending confirmation that the gas prices conform to the FERC's policy statements. The ISO has filed a waiver request with FERC to retain the existing tariff provisions in the interim.

 

Main Text

The ISO will activate Phase 2 of the Aliso Canyon Gas-Electric Coordination initiative effective trade date July 6, 2016. Although the functionality is activated, the ISO will delay the use of Intercontinental Exchange (ICE) gas prices to calculate commitment and default energy bids for affected resources in the Southern California Gas Company and San Diego Gas & Electric systems pending confirmation that the gas prices conform to the Federal Energy Regulatory Commission (FERC)'s policy statements on gas prices. The ISO has filed a waiver request with FERC to retain the existing tariff provisions in the interim. All other Phase 2 changes will be implemented as scheduled.

 

This expedited stakeholder initiative addresses the gas-electric market coordination concerns raised by the limited operations of Aliso Canyon storage facility. The project will implement market mechanisms and other tools to mitigate the risks to gas and electric markets to avoid electric service interruptions to the extent possible under strained gas market conditions.

 

No action is required by market participants with this deployment.

 

Please note that the addition of Kern River fuel regions as a selection option are not part of this deployment and will be deployed mid-July 2016.

 

More information about the Aliso Canyon Gas-Electric Coordination initiative is available at http://www.caiso.com/informed/Pages/StakeholderProcesses/AlisoCanyonGasElectricCoordination.aspx.

 

For more information on the details of this deployment, please refer to pages 13-15 of the presentation for the June 21, 2016 Release User Group web conference.

 

For specific information on how to resubmit bids please reference the updated sections 1.22, 3.2 and 3.4 of the SIBR user guide.

 

For More Information Contact

Roxann Hall at (916) 608-7262 or rhall@caiso.com