On November 4, 2015, the California Independent System Operator
Corporation ("CAISO") Board of Governors unanimously
approved certain design changes to the western Energy Imbalance
Market ("EIM"). These changes and enhancements are part
of CAISO's "year 1 phase 2 enhancements" –
including items and issues that the CAISO originally determined
would benefit from having six months of operational experience
under the EIM to inform their resolution, as well as certain items
that were deferred from phase 1 to allow for additional stakeholder
input.
Following completion of phase 2 of the stakeholder initiative on
the year 1 enhancements, CAISO's management proposed to its
Board of Governors that the following design changes be
implemented: (1) modification of the allocation of congestion cost
credits resulting from transfers of electricity between EIM
entities; (2) modification of the market power mitigation process
to always include EIM transfer limits; (3) specification
