It’s going to be a very nice Christmas indeed for Berkshire Hathaway’s NV Energy.
After a month-long delay, the Federal Energy Regulatory Commission has authorized NV Energy to enter the western Energy Imbalance Market (EIM), a move that will save NV Energy millions a year.
The California Independent System Operator Corporation (ISO) and NV Energy have begun implementing the final steps needed to begin full and financially binding participation in the real-time market on December 1, 2015.
NV Energy was originally scheduled to join the western Energy Imbalance Market on November 1.
Millions in Projected Savings
NV Energy will save millions annually, with its attributed share of gross benefits estimated to range from $6 million to $10 million in 2017, and from $8 million to $12 million by 2022.
Berkshire’s PacifiCorp Already Saving Millions
In 2014, when Berkshire Hathaway Energy’s PacifiCorp agreed to become the first participant in the new Energy Imbalance Market, it was touted as a way to balance electricity in-flows and out-flows on a regional basis that would bring millions of dollars in benefits to participating utilities.
The predicted benefits for PacifiCorp have proven to be true, and the California Independent Service Operator (CAISO) has been able to quantify the benefits for the year so far were over $33 million.
About the Energy Imbalance Market
The EIM improves the integration of renewable resources and increases reliability by sharing information between balancing authorities on electricity delivery conditions across the entire EIM region. The only real-time energy market in the Western U.S., advanced ISO market systems automatically balance supply and demand for electricity every fifteen minutes, dispatching the least-cost resources every five minutes.
© 2015 David Mazor
Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.