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February 24, 2016
Brattle Report Cited in Utility Dive Article on CAISO Study of New Regional Electricity Market

A Brattle report was recently featured in a Utility Dive article discussing the California Independent System Operator’s (CAISO) study to assess the potential of a regional electricity market in the West.

California’s landmark Senate Bill 350 (SB 350) ordered the study to determine whether a regional market is the surest path to achieving the state’s 50% renewables by 2013 mandate. The study emerged after years of discussion about organized markets’ efficiencies.

Brattle Principals Judy Chang and Johannes Pfeifenberger have prepared the preliminary assessment for the study, “CAISO’s SB 350 Evaluation Plan,” which explores the impact on California ratepayers. The assessment anticipates the operating cost savings, which the authors believe will come from the elimination of multiple transmissions tariffs as resources are moved across balancing authority areas (BAAs). Additionally, the assessment finds investment cost savings will come from a regionally-agreed definition of resource adequacy and more flexibility in procurement of generation.

The Utility Dive article outlines the region’s resources, benefits of a region-wide electricity market, and the skepticism from California leaders. The article notes that CAISO is optimistic about a region-wide electricity market, considering not all 38 balancing authority areas are in favor.

The full Utility Dive article can be read here.