Managing california´s electric markets in an interconnected regional transmission network

Challenges facing the California ISO as it transitions from a zonal to an LMP-based market that it founded on a Full Network Model for congestion management include both obtaining the most accurate modeling of the western regional energy market and integrating new supply resources, particularly renewable energy. Through simulations of its new market, the California ISO has uncovered needs for modeling of transmission outside its control area. A remaining obstacle has been the modeling of unscheduled loop flow in a context where limited information is available about market schedules outside the ISO, but analyses of modeling for the western regional market show that improvements can occur even with the limited information that is available.