Berkshire Hathaway’s utility NV Energy will not be entering the western Energy Imbalance Market (EIM) on November 1, as originally planned.
The California Independent System Operator Corporation (ISO) and NV Energy are delaying the date for the Nevada-based utility to begin financially binding participation in the western Energy Imbalance Market (EIM).
The two companies are ready to proceed with full EIM participation and are awaiting the final authorization to proceed from the Federal Energy Regulatory Commission (FERC).
The ISO will implement the entry of NV Energy as an EIM entity only on the first of the month. The ISO and NV Energy said that they will announce the date of NV Energy’s EIM implementation promptly upon authorization by FERC.
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.
Savings Are Already Happening for Berkshire
In 2014, when Berkshire Hathaway Energy’s PacifiCorp agreed to become the first participant in the new Energy Imbalance Market (EIM), 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.