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On February 18, FERC accepted the Colorado Public Utility`s (PSCo) Joint Shipping Service and a Joint Transit Agreement to facilitate intra-hour dispatch of production resources within the PSCo Compensation Self-Reliance Zone (BAA). In rejecting an earlier proposal, which set a price for resources on the basis of systemic marginal costs, FERC concluded that the common transit agreement would not lead to fair and reasonable rates and that there was insufficient protection to reduce PSCo`s potential to exploit the market power of the BAA concerned. The California Independent System Operator (ISO) has signed an implementation agreement with Xcel Energy – Colorado that paves the way for the company`s participation in the Western Energy Imbalance Market (EIM) in 2022. FERC has committed PSCo to submit annual reports on the Common Transit Agreement for the first two years of operation. The Commission has instructed the company to submit, within six months from the end of the first two years of joint transit operations, a report summarising the costs and savings that each participant has incurred, information on the route of transmission and comparisons of the costs of the last marginal energy unit under the agreement and the year before the implementation of the agreement. The Commission explained that its concerns about the potential for market power and that the issue of PSCo`s access to customer loading data and non-public transmission information was taken into account in the revisions to the agreement following a conference of the parties. The parties have structured the common transit agreement so that any charge service of the PSCo BAA that undertakes to provide resources to production and whose transport provider accepts the common mail-order service can become a contracting party to the common transit agreement, as pointed out by ferc. „The parties will be able to achieve substantial savings by sending their collective resources more efficiently,“ ferC said. „These savings will be passed on to their customers.“ The agreement will help the aforementioned distribution companies move from JDA to Western EIM.