Southwest Power Pool to launch energy imbalance market as alternative to CAISO

Source: By Robert Walton, Utility Dive • Posted: Wednesday, June 19, 2019

SPP is growing its services and capabilities, with the upcoming WEIS just one of several contract-based products from the regional grid operator.

SPP also administers the Western Interconnection Unscheduled Flow Mitigation Plan and will offer RC services to a number of utilities in about six months. The RTO also said it is in the early stages of developing planning coordination services, “by which it would help utilities study and plan upgrades to the region’s transmission system.”

Like other imbalance markets, SPP said the central feature of its WEIS would be an intra-hour, centralized dispatch of energy from participating resources.

“This centralized dispatch more efficiently ensures the reliability of the transmission system and minimizes the production costs of satisfying load’s resource obligations,” SPP said in its market proposal.

The new market will accommodate a diverse set of resource types, and the RTO said it will facilitate resource registration as part of the market-participant onboarding process. Loads and resources in participating balancing authorities must be registered with the WEIS, unless they include behind-the-meter generation resources less than 10 MW.

Source: Southwest Power Pool (click on chart to expand)

Implementation of the new market will take about 16 months, SPP said, assuming it can get enough customers on board by Aug. 1 to ensure funding of implementation costs.