Impact of de-regulation on system operation in California

This paper deals with the impact of de-regulation on system operation in California. This industry has experienced tremendous changes over the last 5 years, which has undoubtedly impacted the way the power system is operated across the nation and the world. De-regulation of electricity is aimed at introducing competition into the supply side of the industry while retaining controls on the delivery side (wires) thus in theory reducing prices without impacting reliability, while providing a choice for consumers to purchase energy from the supplier of their choice. The key questions are how to accomplish these objectives and what impact has de-regulation had on operating the power system. This short paper will address some of the current challenges ISOs, utilities and their system operators are facing, in managing their systems in order to fit into the new deregulated environment.