FERC makes Cal-ISO gas constraint tool permanent as Aliso Canyon limitations persist

摘要

California Independent System Operator has received the go-ahead to make its maximum gas burn constraint a permanent operational tool to help avoid blackouts in Southern California amid continued limited operations at the Aliso Canyon natural gas storage facility. When conditions warrant, the constraint allows Cal-ISO to limit the amount of natural gas that can be burned by power plants in the Southern California Gas and San Diego Gas & Electric regions. Cal-ISO was previously authorized to use the tool on a temporary basis. The Federal Energy Regulatory Commission Monday approved the grid operator’s October 31 proposal (ER20-273) to make permanent three tariff provisions associated with the constraint. One of the tariff provisions authorizes enforcement of the constraint, while another gives Cal-ISO the authority to override competitive path assessments based on actual system conditions in order to deem certain transmission constraints uncompetitive when the gas constraint is enforced. The last provision permits Cal-ISO to suspend virtual bidding if the bids are introducing adverse market outcomes in conjunction with the use of the gas constraint. When Cal-ISO applied for the permanent extension, it asserted that using the maximum gas constraint provides itself and market participants “with a least cost market solution for dispatch of resources when the gas system is constrained, and it provides a more effective tool for managing the system reliably than exceptional dispatch.”