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CAISO seeks to extend gas reliability measures

05 Jun 2017 17:54 (+01:00 GMT)
CAISO seeks to extend gas reliability measures

Houston, 5 June (Argus) — The California Independent System Operator (CAISO) is proposing to extend temporary natural gas market measures implemented after the Aliso Canyon natural gas storage facility leak, which are due to expire on 30 November this year.

The changes, outlined in a straw proposal, would permanently extend CAISO's ability to enforce gas constraints for either capacity or imbalance limitations, and allow changes to be made to the constraints design.

The gas constraint is useful because it can be used to better coordinate with gas system operations and help keep the system within operational limits, CAISO noted.

CAISO would also gain permanent authority to, on occasion, deem transmission constraints uncompetitive, and to suspend bidding if these constraints undermine market efficiency.

In addition, CAISO would permanently increase access to scheduling information prior to day-ahead market results, which will help suppliers make gas procurement decisions.

Other measures in place would also receive a temporary extension, pending the results of an existing stakeholder evaluation process. These measures would remain in effect until the second half of 2018, when long-term solutions are expected to be implemented.

Stakeholders will be able to submit written comments on the straw proposal between 7-14 June. CAISO will then create a final draft and ask for additional stakeholder submissions before presenting the proposal to the ISO's Board of Governors and the Energy Imbalance Market Governing Body (EIM) in July.

The proposal marks the third phase of the Aliso Canyon Gas-Electric Coordination policy initiative, which aims to address energy reliability risks in California after the Aliso Canyon leak.

The Aliso Canyon storage facility near Los Angeles has been unavailable since October 2015, following the discovery of a massive leak that released nearly 5 Bcf of gas.