Caiso

In response to FERC actions attempting to improve coordination between the electric and natural gas grids, the California grid operator has proposed some changes for this winter that will be discussed in a stakeholder conference call Tuesday.

FERC has approved a plan by California's grid operator to deal with natural gas price spikes for must-run gas-fired generation plants in the state, setting aside an earlier request from the generators for a waiver of existing tariff rules (see Daily GPI, March 7).

In a filing earlier this month, the California Independent System Operator (CAISO) asked FERC to deny a request by independent power generators for relief from spiked winter gas prices that they had requested two days before (see Daily GPI, March 7).

The effect of this winter’s harsh weather for much of the nation, which has pushed up natural gas demand, particularly in the power generation sector, as well as prices, has spilled over into drought-ridden California where independent generators last Tuesday sought relief from FERC.

Severe winter weather conditions in other areas of the nation prompted California’s independent grid operator Thursday afternoon to issue an energy conservation alert because of constraints on natural gas supplies imported into the state from the Southwest, Rockies and western Canada.

A combination of continued robust economic growth throughout theWest and dwindling supplies from out of state will make blackoutsin California more likely next summer, the CEO for the state’sindependent transmission grid operator (Cal-ISO) told theorganization’s board Wednesday.