Supply of and Demand for Electricity for CaliforniaCurrent Energy
Supply of and Demand for Electricity for California

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This page contains more information about the different lines on the Electricity Supply and Demand chart for California, as well as links to the original data sources. Use these links to jump to the terms that interest you:

CAISO Control Area

The CAISO defines a control area as a "geographic area which regulates its generation in order to balance load and maintain planned interchange schedules with other control areas" ( CAISO Summer Assessment, p. 40). Loosely, it is a portion of the grid over which a single entity has responsiblity for maintaining the balance of supply and demand, and ensuring reliability. The CAISO control area consists of the former control areas of the three Investor Owned Utilities (PG&E, SDG&E, and Southern California Edison), and the service areas of some of the Municipal Utility Districts. It does not include Sacramento (SMUD) or Los Angeles (LADWP). Within it's control area, the CAISO is responsible for scheduling generation and load, contracting for all the services necessary to maintain grid reliability ("ancillary services", in the technical jargon), and dealing with any and all contingencies. To account for all the power that flows through the wires, they also need to keep tabs on how much electricity is entering and leaving through the borders of their control area.

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Maximum Capacity

As outlined in the Primer above, we need to make a distinction between the market supply of electricity (the amount available to be sold) and the physical capacity of generation resources. The Maximum Capacity defined here corresponds to the latter concept - it represents the total amount of electricity that could conceivably be produced by all the generators in the CAISO control area. Anyone who wants to operate a generator inside California has to obtain a license from the state government to do so. The California Energy Commission maintains lists of all the generators licensed to operate in the state (including the Muni's) at their Siting Information Page , under Historical and Statistical Data. From this list, the total on-line capacity in state is about 54,000 MW. There are about 9,000 MW in the Municipal districts, and about 45,000 Mw in the CAISO control area. The latter figure is used on the chart. This is a maximum because at any given moment some generators may not be operating, or not operating at full capacity, for a wide variety of reasons.

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On-Line Capacity

For system reliability purposes, it isn't enough to know if a generator is hooked up to the grid -- you also need to know if it's going to be operating. For this reason, every day the generators must notify the CAISO if they plan to take capacity off-line.

A generator that is off-line is called an outage or a curtailment. Outages can be scheduled in advance (usually for maintenance purposes), in which case they're known as planned outages. Or they may occur with little or no advance notice, in which case they're called forced outages. Each day the CAISO publishes a detailed list of these planned and forced outages. Our definition is On-Line Capacity = Maximum Capacity - (Forced + Planned Outages) . It's important to realize that plants can go off-line or come on-line at any time, so these daily numbers are necessarily approximate. As the CAISO states, "[b]ecause outages may overlap or may not all be simultaneously in effect, this report may indicate a different total outage/curtailment than a real-time report using only data from curtailments/outages in effect at that time."

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Imports and Exports

Keeping track of the electricity flowing through the grid entails monitoring how much enters and leaves the CAISO control area. Electricity going out is called an "export" while electricity coming in is (not surprisingly) referred to as an "import". Exports and imports don't necessarily leave the state -- they may also be due to exchanges with the Municipal Utility Districts inside California. So, for example, if a generator inside the district controlled by LADWP sells power to SDG&E, this will be counted as an import to the CAISO area. A Muni buying electricity from a generator inside the CAISO area would count as an export.

The information on our chart is taken from the CAISO OASIS Hour Ahead Market Information. This tells you the volume of imports and exports that have been scheduled about two hours in advance of the current (or operating) hour. The CAISO also operates real-time markets, and buys electricity out-of-market in real time, so the real-time values of imports/exports may be somewhat different. On the graph, we define Net Imports/Exports = Imports - Exports , with both imports and exports represented as positive numbers. The net is positive if there is a net gain within the ISO control area.

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Potential Capacity

The potential capacity represents, at the current time, the maximum amount of generation that could be available to serve load. On the graph we define Potential Capacity = On-Line Capacity + Net Import/Export - Reserves. Reserves are defined here as 7% of the current load.

The current load on the system is determined by what everyone who uses electricity is actually doing at the moment. As such, it fluctuates constantly. The system is designed to handle these fluctuations within limits, but very large fluctuations (due for example to an unexpected generator failure) can cause major problems, including equipment failures that are expensive and time-consuming to fix. To avoid these problems, all grid operators are required to make sure that a sufficient amount of reserve capacity is available. There are different types of reserves (spinning, non-spinning), as well as other forms of so-called ancillary services that the CAISO must acquire to be able to dynamically maintain the balance between supply and demand. The Western Systems Coordinating Council sets the standards for grid operators in the western part of the continent (they have to use the same standards, because all the grids are interconnected). These are known as Minimum Operating Reliability Criteria, and are discussed in great detail here, The actual formula is somewhat complicated, but results in the requirement that capacity equal to about 7% of the load be set aside as a reserve. The CAISO calls emergencies (Stage 1,2 and 3) when reserves are in short supply -- physics requires that supply in the grid equal demand in the grid, irrespective of what supply in the market is doing, so a potential shortfall shows up first in the reserves.

The quanitity of supply represented by "Potential capacity", compared with the current load, is meant to give a rough sense of how close we are to over-taxing the available resources, but can't be used as an exact measure of how much electricity is really available. One reason for this is that the CAISO also operates real-time markets, but data on the volume of electricity traded in these markets is not available to be posted on our chart.

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Current Load

The current load is the total demand for electricity in the CAISO control area at the current time. Since it's impossible to track changes in demand that occur every second, the current load really represents an average over a time period of about ten minutes. Although the load varies everytime anyone flicks a switch, on the average it's fairly predictable, with variations due to daily, weekly and seasonal patterns. Load that is fairly constant over the entire day is referred to as the "baseload"-- for residences, it includes such things as refrigerators, water heaters, and lights that are never turned off. Baseload for residential and commercial buildings can be surprisingly large, considering that there is little activity at night. Seasonal variations in load are due mainly to changes in the need for heating and cooling, and can be quite substantial. This is somewhat inconvenient in terms of managing supply, since generation capacity has to be built to satisfy the peak load, but for much of the year the actual loads may be much less.

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Forecast Load

The demand for electricity is fairly predictable, given information about weather, the habits of individuals and businesses, economic activity, etc. To facilitate the operation of the grid the CAISO publishes various forecasts of the daily system load. We use their one-day-ahead forecast on our chart, which is available through the CAISO OASIS web site. The ISO makes adjustments to this forecast two hours ahead of the operating hour, and uses this value in the chart at their website, so the forecast on their chart may differ somewhat from ours. The forecast load is an important quanitity because it is used to estimate reserve requirements, which need to be booked in advance as much as possible.

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Disclaimer:

Development and maintenance of the Current Energy website ended in January, 2005. Linkages to data obtained from other websites will degrade over time, and parameters on which the computations depend will become out-of-date.

This chart is presented for educational purposes only. We have used publicly available information, and cannot assume reponsibility forthe accuracy of this information. Links to the original data sourcescan be found at this page.

These pages were prepared by Emily Bartholomew, Chris Bolduc, Katie Coughlin, Brian Hill, Alan Meier and Robert Van Buskirk,
Environmental Energy Technologies Division
Lawrence Berkeley National Lab