California’s legislature last week wrapped up its 2017 session without authorizing the broad expansion of the California Independent System Operator (CAISO) into other Western states or passing a zero-carbon bill, which would have put the state on a path to 100% clean energy by 2045. It did, however, succeed in passing bills to encourage development of energy storage and distributed energy resources to reduce its reliance on gas-fired generation in light of the Aliso Canyon debacle.

A Freeze on CAISO Regionalization

CAISO and a number of participants within the Western Interconnection have been exploring the creation of a more fully integrated regional electricity market that would be managed by a single system operator and include day-ahead and real-time markets, but the measure will now need to be revived next year.

As some of the initiative’s proponents point out, power within the Western Interconnection is managed by 38 separate balancing authorities in the U.S., Canada, and Mexico. While all balancing authorities, including CAISO, are part of a synchronized grid, each authority is responsible for its own territorial supply and demand balance.…

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