An Efficient Western Energy Imbalance Market with Conflicting Carbon Policies.

A reform of the Western Energy Imbalance Market should target the right problem. Import leakage is a problem; resource shuffling is a solution. Proposed modifications for the existing EIM design target the wrong problem and would work at cross purposes to the very reasons for the EIM’s existence. There is a better approach that would address the right problem and preserve the critical elements of the existing EIM design.