OREANDA-NEWS. PacifiCorp wants to explore full participation in the California Independent System Operator (ISO) to see if it can expand on early benefits from participation in the western energy imbalance market.

Portland-based PacifiCorp and the ISO have signed a memorandum of understanding to begin a study on the feasibility and benefits of PacifiCorp's utilities joining the competitive wholesale market as a participating transmission owner. PacifiCorp utilities Pacific Power and Rocky Mountain Power cover parts of California, Idaho, Oregon, Utah, Washington and Wyoming. Investment conglomerate Berkshire Hathaway Energy owns PacifiCorp.

Joining the ISO would allow full coordination of the two largest electrical transmission grids in the western US and allow customers to a broader array of power generation at lower costs, the ISO said.

Six months ago, the ISO and PacifiCorp launched energy imbalance trading over three disjointed balancing areas covering all or parts of six states.

PacifiCorp estimated benefits of nearly \$6mn in the first two months of the energy imbalance market which contributed to its decision to explore further integration with the California ISO.

"PacifiCorp's full participation can make our market much stronger for all current ISO and energy imbalance market participants and can help lower costs, better leverage assets and reduce emissions across the region," said ISO president Steve Berberich. "We are pleased that they are exploring the value of fully taking advantage of the ISO's state-of-the-art technology, planning talent and full spectrum of market products."

Berberich said the grid agency remains committed to the energy imbalance market.

PacifiCorp transmission president Pat Reiten said expanding the existing partnership could support clean energy goals and enhance service throughout the west and Pacific northwest.

Governance will be a key issue for PacifiCorp as the parties move forward with the memorandum of understanding.

The expanded ISO will have to rely on transmission infrastructure operated by the Bonneville Power Administration and other transmission providers in the west.

The only external entity under direct ISO control is the Valley Electric Association of Pahrump, Nevada, which turned over its transmission network to the California grid operator in 2013.