ABB electricity market software goes live in California

SANTA CLARA, Calif., Nov. 9, 2004 — ABB, a power and automation technology company, announced the California Independent System Operator (Cal-ISO), which operates the State’s electricity markets and controls the State’s power grid, has completed a major overhaul of its electricity market systems with the implementation of ABB’s Real-time Market Application (RTMA) software.

RTMA, which was delivered on ABB’s new Market Managerà¢â€ž- software platform, facilitates major changes to the real-time automated dispatch and settlements systems as required under Phase 1B of Cal-ISO’s Market Redesign and Technology Update. This includes the introduction of penalties for power suppliers who deviate from specified generation levels. The new system went live in a smooth transition just after midnight on the morning of October 1.

“With this implementation we have made the operation of the electric system in California more reliable, efficient and consistent,” says Randy Abernathy, Vice President of Market Services at Cal-ISO. “The new [RTMA] software automatically chooses the most economic generators to meet the ever-changing needs of the grid, and the potential for penalties gives energy suppliers economic incentives to perform as promised.”

Uninstructed Deviation Penalties (UDPs) are imposed if suppliers deviate from their expected or instructed level by a significant degree. Cal-ISO notes it will begin calculating penalties immediately, but will enforce them beginning December 1 to provide suppliers an opportunity to adjust their bidding and operations to meet the new requirements.

“The completion of this project represents the culmination of more than a year of engineering, development and testing of some very advanced technology,” says Yilang Chen, Director of Central Markets at ABB. “ABB delivered the original infrastructure systems to Cal-ISO back in 1998, and we have made numerous improvements to them since then, but none with such far-reaching enhancements as those in Phase 1b. The Cal-ISO and ABB teams worked together seamlessly to ensure the smoothest possible transition. ABB is very pleased to be part of such a major improvement to the energy markets and the control of the State’s electricity supply.”

About ABB [ www.abb.com> ]

ABB is a leader in power and automation technologies that enable utility and industry customers to improve performance while lowering environmental impact. The ABB Group of companies operates in around 100 countries and employs about 103,000 people. The company’s U.S. operations employ about 8,500 people in manufacturing and other facilities in 32 states


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