California officials say integrating management of the state grids under CAISO oversight could cut its retail power rates by as much as 3 percent. But the agency must persuade leaders in the other states — Utah, Washington, Idaho, Montana, Oregon, Wyoming, Nevada, Colorado, Arizona and New Mexico — to turn over management of electrical distribution within their borders.
And while it's unclear exactly how the proposal would affect electricity prices in Utah, Rocky Mountain Power says its customers would see benefits.
Beyond saving money, the plan also has long-term potential — at least according to some — for cutting emissions of carbon dioxide, a major greenhouse gas.
It could also let sunny California send surplus solar power to states farther east, such as Utah, where the sun is setting and electricity demand increasing at roughly the same time that solar generation is at its peak on the coast.
But negotiations apparently have stalled over concerns from several states on how to balance CAISO's regional authority over the grid with their own.
California Senate President Pro Tempore Kevin de León remains opposed to any measure that would cede the state's control over its energy policies to any other state, according to spokesman Anthony Reyes.
As long as California fails to pass legislation giving other states a say in the grid's management, Hoogeveen said, the deal is a "nonstarter."
"The question is, who controls [the Western grid], and what are the rules to govern that entity," he said. "And those are the questions that have kind of stuck so far."
PacifiCorp operates as Rocky Mountain Power in Utah, Wyoming and Idaho and as Pacific Power in Oregon, Washington and California.
All of the states in which PacifiCorp operates have said they will not agree to let California set regionwide energy policy, Hoogeveen said.
"Things have to be resolved first regarding governance," he said, "and to the extent that that isn't happening, we're not interested in expending our states' time on the issue."
Brown, California's governor, indicated in a letter late last summer that he thought it best to postpone voting on the matter until January to allow more time to address "some important unresolved questions."
But, according to CAISO spokeswoman Anne Gonzales, no legislation has yet emerged for regionalizing CAISO's authority.
Studies conducted last year by CAISO assumed Rocky Mountain Power would be the first utility to sign up for the regional grid.
But Gonzales opened the possibility that California lawmakers might adopt a CAISO-backed grid-governance plan without Rocky Mountain Power initially on board, then allow it and other Western utility companies to consider joining.