Expanding the Energy Imbalance Market Is the Right Way to Regionalize California’s Grid

In a previous article, we touched on how this can be accomplished through a combination of regional markets and smart management of our distribution grids. The key question is how to strike the right balance of regional integration with distribution management, while maintaining the state’s control and supporting renewable energy.

That right way is to:

  1. Fix the massive market distortion that exists around transmission cost allocation in Participating Transmission Owner utility service territories in California
  2. Expand the existing, proven approach of our Energy Imbalance Market to additional energy import and export products
  3. Develop a system of distribution system operators (DSOs) to reduce needs for imports and exports

The combination of an expanded Energy Imbalance Market and distribution system operators is a lower-risk approach than jumping into a fully integrated regional transmission organization.

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