Platts
Starting next year, the California Independent System Operator will use a competitive solicitation process to acquire backstop capacity when there are unexpected shortages or grid reliability issues, the grid operator’s board said.
The Cal-ISO’s board on Thursday approved the market-based mechanism, which will replace a fixed-price administrative back-stop method that is set to expire February 16, 2016.
The market-based process allows suppliers to offer local, system, and flexible backstop capacity, according to the grid operator. This process will solicit offers annually, monthly, and daily and will run whenever the grid operator determines there is a need for backstop capacity, Keith Casey, Cal-ISO’s vice president for…