As part of exploring the expansion of the ISO’s balancing authority area into additional western states, the ISO will need to modify how the market determines which resources are serving load in the various states. Under a multi-state balancing authority area, energy flows within the balancing authority area will not use e-tags to identify their contract path or for interchange management. In order to determine energy flows based upon geographical boundaries within the new multi-state balancing authority area, the ISO must modify the different tracking approach. Such an approach is needed so that the ISO market can reflect the costs associated with compliance with the California Cap-and-Trade Program in energy prices for transactions subject to that program, but not in energy prices for transactions that are not subject to the program.
The ISO plans to discuss this issue paper with stakeholders during a stakeholder conference call to be held on September 6th. The ISO requests comments from stakeholders on the proposed areas of GHG market design changes described in this issue paper. Stakeholders should submit written comments by September 20th to InitiativeComments@caiso.com.