What's brewing with CAISO's markets and grid operations

What's brewing with CAISO's markets and grid operations

🎙 Clean Coalition 👥 249 📅 November 10, 2020 ⏱ 75 min 👁 716 📄 expert opinion 🧭 2026-10-10
Available in: English (current) Français

Keywords

CAISOrolling blackoutstransmission access chargesresource adequacyrenewable energy

Summary

The Clean Coalition hosted a webinar featuring Craig Lewis and Loretta Lynch to analyze the August 2020 rolling blackouts in California and CAISO’s market operations. Craig Lewis discussed the mission of the Clean Coalition, highlighting the need for 25% local renewable energy to enhance resilience and the problems with transmission access charges (TAC) that distort markets by failing to distinguish between local and remote generation. He detailed how TAC are incorrectly assessed at the customer meter, making remote energy appear cheaper, and argued that fixing this would save ratepayers billions. Loretta Lynch then provided a deep dive into CAISO’s role as the grid operator, noting that California had planned and purchased sufficient resources for the summer peak based on CAISO’s own May assessment. She presented data showing that actual demand during the blackouts was below planned levels, and questioned CAISO’s failure to use demand forecasts, its convergence bidding market issues, and its handling of plant outages and exports. She critically reviewed CAISO’s root cause report and outlined reforms such as fixing market distortions, improving demand response, and ensuring resource adequacy. The webinar emphasized that market design flaws, not actual supply shortages, were the primary cause of the blackouts, and called for policy changes to align CAISO with statutory requirements to protect ratepayers, public health, and the environment.

217 words

Critical Evaluation

Value of the Information & Strength of the Argument

The webinar provides substantial value by combining expert insider experience (Loretta Lynch as former CPUC president) with data analysis from public sources. It convincingly argues that the blackouts were not due to unexpected high demand or lack of generation, but rather market failures and CAISO’s operational decisions. The argumentation is structured: they first present the planning numbers, then show actual demand, then dissect CAISO’s root cause report, and propose reforms. The evidence includes specific megawatt figures and references to CAISO reports. However, the presentation is one-sided, with no representative from CAISO to defend its actions, so the argumentation is compelling but not fully balanced.

Scientific Rigor, Source Quality, Title Accuracy

The webinar relies on publicly available data and reports, including CAISO’s preliminary root cause analysis published in October 2020, NERC’s reliability assessment, and state law requirements. The presenters clearly cite their sources and explain the context. The title accurately encapsulates the content. The rigor is moderate: they use primary sources and data, but the analysis is interpreted from a specific policy perspective. They also include their own campaign materials and advocacy, which biases some conclusions. Overall, the sources are credible and well-referenced, but the interpretation is not neutral.

207 words

Title / Content Match

The title accurately reflects the focus on CAISO's market operations and grid issues, particularly the August 2020 blackouts and proposed reforms.

Quality & Reliability

7/10

The webinar provides a detailed critical analysis of CAISO's operations based on public data and reports, but from a pro-renewable advocacy perspective. It cites specific sources like CAISO's own root cause analysis and NERC assessments, but does not present counter-arguments in depth.

Key Moments

Cited Sources

  • CAISO Preliminary Root Cause Analysis — The analysis of the August 2020 blackouts is critiqued and referenced as the basis for the webinar's discussion.
  • NERC Reliability Assessment — NERC's comprehensive assessment found that California had sufficient supply for 2020, contradicting CAISO's claims of shortage.
  • Clean Coalition website — The organization's website hosts the webinar and additional materials.
  • California Public Utilities Commission — Mentioned as the regulator requiring resource adequacy and overseeing utilities.
  • Federal Energy Regulatory Commission (FERC) — Mentioned as the authority over CAISO's tariffs.
  • Foundation for Resilient Societies — Referenced as having analyzed the planned need and resources for the August peak.
  • WECC (Western Electricity Coordinating Council) — Mentioned as a reliability coordinator for the western grid.

Concurring Sources

  • NERC 2020 Summer Reliability Assessment — NERC indicated sufficient supply in California for summer 2020, supporting the webinar's claim that blackouts were not due to actual shortage.

Contribution & Novelties

The webinar’s original contribution lies in its critical analysis of CAISO’s market operations, specifically highlighting how transmission access charges distort competition and how CAISO’s own planning and market mechanisms failed during the August heatwave. It goes beyond the official root cause report to ask deeper questions about market design and regulatory oversight. The presenters propose concrete reforms, such as fixing the metering point for transmission charges and improving resource adequacy rules.

Pour aller plus loin:

136 words

Radar Profile

The profile shows high quantity of information and technical depth, but moderate scores in quality and reliability reflect a perspective that is detailed yet advocacy-oriented. The low reliability score indicates that the analysis, while fact-based, is presented from a specific viewpoint.

Reliability 6/10