Crisis Aftermath: Piecing Western Markets Together

 

California must address its transmission problems, particularly Path 15.

The roots of the California crisis and resulting turmoil in Western U.S. electricity markets run deep, encompassing deficiencies in both generation (when hydro availability is low) and transmission. To restore workable competition via deregulation in the region, the transmission and generation pieces need to be addressed in tandem. This discussion highlights key developments in transmission that are under way, and their impact on generating resources and supply adequacy.

California has historically suffered from a number of transmission constraints. Perhaps the most infamous transmission bottleneck, resulting from its pivotal role in the California energy crisis in early 2001, is the Path 15 transmission constraint. Path 15 restricts access to thermal generating capacity in Southern California during low hydro conditions in Northern California, when support from the south is needed the most.