- The Nevada Public Utilities Commission approved NV Energy’s joining a regional Energy Imbalance Market (EIM) with the California grid and PacifiCorp. The commission noted that Nevada’s dominant electricity supplier stands to profit significantly from being able to voluntarily supply the market with flexible natural gas-generated electricity.
- The EIM will allow real-time dispatch of electricity to and from the California Independent System Operator (CAISO) and PacifiCorp’s four-state Pacific Northwest system. When NV Energy joins in October 2015, it will be able to increase its use of renewables and sell more natural gas-generated electricity, cut its reserve needs and lower curtailments of its own renewables. The benefits projected by recent research are expected to be worth up to $9.5 million in 2017 and $12.5 million in 2022.
- The research predicted NV Energy will spend $11.2 million in EIM startup costs, for more advanced metering and telecommunication power plant upgrades and trading and settlement systems, and up to $3.2 million per year in ongoing EIM-related costs.
Both NV Energy and PacifiCorp are subsidiaries of Warren Buffett’s Berkshire Hathaway Energy.
Early participation in the EIM is expected to give NV Energy a stronger voice in the governance transition committee decisions, ensuring market benefits for Nevada.
The Nevada Bureau of Consumer Protection, the state’s ratepayer advocate, supported NV Energy’s joining the EIM but has concerns about longer term impacts.
NV Energy's natural gas-generated electricity is expected to beat the PacifiCorp gas generation in price.