Cal-ISO Reduces Grid Charge and Workforce

By CMTA Staff

Capitol Update, July 15, 2005 Share this on FacebookTweet thisEmail this to a friend

The California Independent System Operator (Cal-ISO), the agency responsible for ensuring the reliability of the state’s electric grid, announced on July 13 that it will lower transmission charges by 15 percent next year.  The Grid Management Charge (GMC) will be reduced from 85 cents per kilowatt-hour to 73 cents/kWh in 2006.

A corporate realignment and reorganization was also announced, with a new executive team working under Yakout Mansour, the President and CEO since February of this year.
Staff levels at Cal-ISO will also be reduced, by an estimated 16 percent, part of an effort to cut costs and streamline the agency’s operations.

"The new California ISO will be stronger, more focused and in a position to lower transmission-related costs for wholesale customers and, ultimately, consumers," said Ken Wiseman, the Chairman of the ISO Board of Governors.

Mansour said Cal-ISO is now "well-positioned to tackle transmission infrastructure challenges in a more timely and effective manner."

Cal-ISO is also working to revise California’s wholesale market rules, subject to approval by the Federal Energy Regulatory Commission (FERC).  The Market Redesign and Technology Upgrade (MRTU), which will be formally proposed to FERC in November, is aimed at ensuring open, nondiscriminatory access to the transmission system and creating a capacity trading market in sync with the California Public Utilities Commission’s resource adequacy requirements for load-serving entities.  CMTA’s main concerns are to ensure that these policies and procedures are open, transparent, non-discriminatory and cost-effective.
These topics will be covered at the upcoming CMTA Energy Conference from July 27-29 at Harvey’s in South Lake Tahoe.  Mansour will deliver the keynote address on Friday, July 29 and Wiseman will participate in a roundtable discussion later that morning.  On the previous day, July 28, a roundtable discussion on wholesale market issues ("Wholesale Market Operations: Why All Customers Should Care") will include an opening presentation by Carolyn Kehrein, of Energy Management Services, followed by a moderated discussion with Kehrein, former FERC Commissioner Bill Massey and Kent Palmerton of W.K. Palmerton Associates.  Gary Ackerman, of the Western Power Trading Forum, will be the moderator.

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