FERC approves Cal-ISO default pricing plan for modeling loop flows outside control area

摘要

Californian Independent System Operator on Thursday won the right to model loop flows of the transmission networks outside its boundaries by using default prices at certain hubs when it launches its market redesign and technology upgrade.rnCal-ISO stands to make efficiency gains as a result of the change in tariff methodology, which would enable the grid operator to take into account the impact of transactions at the Sacramento Municipal Utility District and Turlock Irrigation District interconnections, FERC said Thursday in a statement announcing its approval of the proposal (ER08-1113).rnThe order had not been issued as of press time.rnThe proposal to revise the pricing plan was sent to FERC in June as part of the MRTU tariff. Cal-ISO said the proposal, representing real time flows into its grid using day-ahead market information from adjacent integrated balancing authority areas, was the only workable solution to avoid significant adverse effects on ratepayers resulting from a lack of access to data needed to calculate locational marginal pricing for transactions at its highly integrated neighboring interchanges.