No Championship Trophy, Just More Affordable and Reliable Energy |
|
|
|
At the time of this newsletter, we know that the New York Knicks are headed to the NBA finals, but the West is still unresolved, with the Oklahoma City Thunder and the San Antonio Spurs battling it out for the chance to compete in the finals. Both day-ahead markets (Markets+ and the Extended Day-Ahead Market) are also still competing - not for a trophy, but for the opportunity to help deliver affordable and reliable energy across more of the West. It's not a total jump ball, with many utilities already having committed to one market or the other, but the landscape is still very dynamic, and our goal remains the largest possible market for the region. Read on for the latest developments happening around the West.
- Leah Rubin Shen, Managing Director at Advanced Energy United
Share the newsletter with your friends and colleagues and encourage them to subscribe. Feedback or suggestions for content? Please reach out to us at westernrto@advancedenergyunited.org. |
|
|
|
Regional Organization for Western Energy (ROWE) Updates |
More Resource Adequacy (RA) Workshops Coming Up This Summer: The RA Sponsor group (a group of EDAM and EDAM-leaning utilities) has completed its initial series of workshops, which examined key issues involved in developing a regional RA framework that could be governed by the ROWE. The framework would be broadly modeled after the WRAP, but also take an approach that can better operate alongside EDAM and better align with the existing CAISO resource sufficiency evaluation process. There have been five workshops so far, which gave stakeholders an opportunity to share early perspectives on transmission obligations, coordination across markets, and potential improvements to existing RA structures, as well as help identify major policy and market design questions that will shape the initiative moving forward.
While the Sponsor group had originally planned to release an initial proposal this summer based on the workshop findings, it has extended the workshop series to allow additional discussions on more topics and issues, with an initial proposal now expected in the fall and a final proposal to the newly seated ROWE board slated for the end of 2026. Additional information and workshop materials can be found on the ROWE website.
ROWE Stakeholder Process: The ROWE Formation Committee continues its work across several governance and organizational workstreams intended to support the development of the ROWE. These efforts include development of the stakeholder process, the Office of Public Participation, and the Organization of Consumer Advocates, among other structural components. The goal of these workstreams is to develop governance proposals for consideration once the ROWE board is formally seated later this year.
|
|
|
|
FERC Commissioner Chang Advocates for Better Markets Teamwork: Earlier this month at CREPC, FERC Commissioner Judy Chang stepped in to referee between SPP and CAISO. Chang warned that unresolved seams issues, including overlapping transmission rights, congestion management, and parallel flow coordination, will lead to costly disputes and litigation once both markets are live and operational. FERC is considering a reporting requirement to ensure coordination between SPP and CAISO, with the goal of having a joint operating agreement in place before Markets+ goes live.
WEIM/EDAM
New Players in the WEIM: The WEIM expanded on May 6 as BHE Montana and two Black Hills Energy subsidiaries began real-time trading, extending the market footprint across 24 balancing authority areas, 12 Western states, and into Canada. Arizona utilities and BPA plan to exit the WEIM in the next few years.
Changes to EDAM Starting Lineup: CAISO is developing a long-term "Phase 2" redesign for EDAM congestion revenue allocation due to gaming concerns around the approved transitional allocation design. CAISO has proposed three approaches for the next phase, with stakeholders expressing strong support for the option that would develop congestion revenue entitlements for CRRs (congestion revenue rights) and eligible OATT transmission rights based on a common simultaneous feasibility test.
Building Up the RA Roster: Industry groups and consumer advocates want more influence over the governance structure of the RA program being developed for EDAM participants (see above for more on the RA program).
New EDAM Dashboard: CAISO has launched a new EDAM report, providing more visibility into market performance and operations.
Markets+/SPP RTO West
Markets+ Tariff is in the Game: FERC approved SPP's revised tariff structure to support cost recovery for the implementation of Markets+ launch in October 2027. The changes establish how SPP will calculate and allocate administrative costs and financing repayment, based on participants' share of market activity, a similar approach to other markets.
|
|
|
|
Updates Around the Region |
BPA is Getting a New Coach: Earlier this month, Newsdata reported that the U.S. Department of Energy is preparing to name Travis Kavulla as the 17th Administrator and CEO of the Bonneville Power Administration (BPA). Although no details have been formally announced, Kavulla is widely known as a pro-markets and pro-competition advocate, and his potential appointment has us on the edge of our seats. Regardless of who is ultimately appointed, a new Administrator could make decisions that have ripple effects across the West: during a Q2 quarterly business review call, BPA officials have stated that they are continuing with preparatory work with efforts to join Markets+ with a 2028 go-live, but are holding off on a final decision until a new Administrator is officially announced.
NV Energy Officially Off the Bench: FERC approved NV Energy’s updates to Attachment P of its tariff — which covers participation in the Western Energy Imbalance Market — to include EDAM implementation. Nevada regulators approved the utility’s request to join EDAM back in April and reaffirmed approval just this week, while softening an earlier ruling that would have had shareholders absorb penalties tied to failing EDAM's daily resource sufficiency evaluation.
|
|
|
|
|
| Advanced Energy United 1801 Pennsylvania Avenue NW, Suite 410, Washington, D.C., 20006 Unsubscribe. |
|
| |
|
|
