Energy Imbalance Market for California? CMUA Annual Conference, Silverado Resort, Napa

April 3, 2014

Jonathan M. Weisgall Vice President, Legislative and Regulatory Affairs

MidAmerican Energy Holdings Company

MidAmerican Energy Holdings Company

• $70.1 billion of assets

• $12.6 billion of revenue

• 8.4 million electric and

natural gas customers

worldwide

• 24,852 miles of electric

transmission and 516

substations

• 19,700 employees

• More than 33,000 MW

of owned and

contracted generation

capacity

• 25% of this generation

capacity is renewable

or noncarbon

United Kingdom

Philippines

2

MidAmerican Owned Wind Resources

(Regulated)

3

Regional Transmission Organizations

4

Western Interconnection Balancing Authorities

5

CAISO-PacifiCorp EIM Basics

• Balances electricity supply and demand every five

minutes by choosing least-cost resource to respond to

energy imbalance in real-time during times of under- or

over-generation

• Leverages geographical diversity to optimize available

regional resources

• Automation more efficiently dispatches resources

across balancing authorities that rely on manual

dispatch and extra reserves to maintain reliability

• Takes advantage of unused capacity on transmission

lines

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What EIM Is Not

• EIM is not a Regional Transmission Organization (RTO)

– All participating balancing authorities maintain control of their

assets and associated reliability compliance obligations

• EIM participation is not mandatory

– Voluntary

– No exit fees; participants can terminate participation at any time

• Will not affect PacifiCorp’s contingency reserve

obligations or reserve sharing agreements

• Does not require that parties consolidate balancing

authority areas

• Does not change PacifiCorp’s balancing responsibilities

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Projected EIM Benefits

• Cost savings for customers:

– Demand will be met with least-cost available resources in real-time, drawn

from a larger pool

– Help assure existing assets are used as efficiently as possible

– Annual benefits to PacifiCorp/CAISO customers: $21-$129 million

• Improved renewable integration:

– Helps integrate renewable resources by capturing the benefits of geographical

diversity of load and resources

– Optimizes the use of renewable energy

• Increased reliability:

– Increases visibility, situational awareness and coordination across larger

portions of the Western grid

– Leveraging ISO’s existing systems will create added system redundancy and

back-up capabilities

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EIM Costs vs. Benefits

• Curtailment of renewables reduced at times of

over-generation

• Modest start-up costs

• Manageable ongoing costs

• Opportunity to send more appropriate pricing

signals for provision of imbalance service

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• Began separate process 4/13 to discuss EIM with

customers and to develop OATT revisions

• Fully transparent process – Webinars

– Written comments

– Workshops

– Individual meetings/conference calls

• Provided numerous opportunities for customer and

stakeholder feedback

• Prepared FERC filing to incorporate feedback

PacifiCorp Stakeholder Process

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EIM Implementation Timetable

• Feb. 28, 2014: CAISO submitted to FERC its EIM amendments

to its Open Access Transmission Tariff

• Mar. 25, 2014: PacifiCorp filed with FERC proposed revisions to

its OATT to participate in the EIM as first EIM entity

• April 2014: NV Energy will file for state approval

• May 2014: CAISO board will seat Transitional Committee being

formed to recommend long-term governance structure

• July-Sept. 2014: PacifiCorp-CAISO conduct market simulation

• October 1, 2014: EIM goes live

• March 2015: NV Energy files tariff amendment with FERC

• Oct. 1, 2015: NV Energy joins EIM

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