Generators Seek California Power Payback

Three California power plant owners have filed a complaint against the California Independent System Operator, which runs the electricity grid for most of the state, seeking compensation for power exports that are canceled when Cal-ISO declares a power emergency. The complaint was filed with the Federal Energy Regulatory Commission by subsidiaries of Houston-based Reliant Energy Inc. and Dynegy Inc., and Atlanta-based Southern Co. The three companies also asked that Cal-ISO not be allowed to limit such payments to the $250-per-megawatt-hour price cap imposed Aug. 1 by Cal-ISO on its market for emergency backup power. Separately, Cal-ISO Chief Executive Terry Winter said that a recent report on electricity market problems written by California Public Utilities Commission President Lorretta Lynch and California Electricity Oversight Board Chairman Michael Kahn may have overstated the financial impact of recent price spikes on consumers and utilities. Cal-ISO will issue its recommendations on how to address the state’s power crisis within a week, Winter said.