On August 25 and 26, 2016, the California Independent System Operator Corporation (“CAISO”) filed Readiness Certifications with the Commission for Puget Sound Energy, Inc. (“PSE”) and Arizona Public Service Company (“APS”), respectively, signaling that PSE and APS are ready to begin participation in the Energy Imbalance Market (“EIM”) administered by the CAISO. According to the CAISO, the expanded, six-Balancing Authority Area (“BAA”) EIM is scheduled to commence on October 1, 2016.

The EIM permits BAAs located outside of the traditional CAISO footprint to participate in the real-time market for imbalance energy that the CAISO operates within its own BAA. The EIM was launched on November 1, 2014, with PacifiCorp (and its BAAs, PacifiCorp East and PacifiCorp West) as the first “EIM Entity.” The EIM was later expanded to include Nevada Power Company and Sierra Pacific Power Company (collectively, “NV Energy”), which began participating in the EIM on December 1, 2015.

In an order issued March 16, 2015, the Commission directed the CAISO to include certain readiness requirements in its tariff, to ensure the operational readiness of any new EIM Entities. The Commission also required that the CAISO and the new EIM Entity “submit a market readiness certificate at least 30 days prior to full activation in the EIM, certifying the readiness of the new EIM Entity’s processes and systems.”

In its August 25 and 26 filings, the CAISO affirmed that “following market simulation and an adequate period of parallel operations,” the CAISO, PSE, and APS “have met all readiness criteria” specified in the CAISO tariff, and are prepared to begin participation in the EIM on October 1, 2016.

Copies of the Readiness Certifications for PSE and APS are available here, and here, respectively.