The California Independent System Operator (ISO) Board of Governors approved the ISO’s 2019 budget of $193.5 million, which is $4 million less than 2018. The 2019 budget also is well below the regulatory cap of $202 million and represents an average annual growth rate of less than 1 percent since 2007.
The ISO has been able to absorb cost pressures by leveraging efficiencies in non-labor costs and increasing other revenues, including the Reliability Coordinator funding that begins in 2019.
The ISO projects that the 2019 transmission volume will decrease to 239.7 terawatt-hours, resulting in a bundled cost per megawatt-hour of $0.807, or a decrease of $0.010 per megawatt-hour from 2018.
The budget was developed with input gathered from a series of public meetings that began in July. The budget goes into effect on January 1, 2019.
The Board also heard a presentation on policy initiatives aimed at promoting flexible resources. Over the next three years, the policies will create new products and market structures that reflect the value of flexible resource as well as strengthen resource adequacy requirements.
The Board also reviewed the three-year stakeholder initiatives roadmap, which outlines ways to manage the system load in real time as part of the day-ahead market enhancements initiative; lower barriers to distributed energy resources and battery storage market participation; and improve the Western Energy Imbalance Market.
See the Board agenda and related documents for more information.