Kicking off the Western Energy World Cup |
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The World Cup is underway, and if you've been following along, you know all about the competition, the intense summer heat, and the upsets and surprises as teams advance through the tournament and compete for a shot at the final (RIP Team USA). Meanwhile, a different kind of competition is playing out in the West, with markets providing the platform where energy producers compete to provide the most affordable energy across the region, especially as temperatures continue to heat up. - Leah Rubin Shen, Managing Director at Advanced Energy United
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Western Governors Release Energy Superabundance Recommendations, Form New Permitting Team |
Following Utah Governor Spencer Cox's year as WGA Chair, the Western Governors' Association has released the final report from his Energy Superabundance initiative, highlighting opportunities to help the West expand and improve the energy generation and transmission needed to meet growing demand and load growth. Just like in soccer, success will take coordination, strategy, and strong collaborative efforts.
Report recommendations include support for state-led efforts to improve long-term regional transmission planning, a call for Federal action and guidance on technologies that can unlock more capacity from the grid, examples of innovative transmission financing structures, and a call for resource-agnostic federal permitting. The report also mentioned the Pathways Initiative as a strong example of voluntary Western cooperation on energy issues.
Alongside the report's release, several Western governors also announced an agreement supporting the multi-stakeholder transmission planning led by the Western Transmission Expansion Coalition (WestTEC) and forming a collaborative cross-state transmission permitting task force.
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Tryouts for the ROWE Board: The Pathways Initiative received more than 120 applications to join the inaugural five-member board for the ROWE. The search firm supporting board candidate vetting is expecting to narrow down the pool during the summer, with the goal of the new board being appointed by September 30 and seated in mid-to late October. The ROWE board will eventually expand to seven members after the organization assumes governance over the WEIM and EDAM in 2028.
EDAM's First Match Went Smoothly, but the Season Is Just Starting: During its first month of operation, EDAM has largely performed as expected, with bidding timelines, market results, and price signals tracking as intended. Early data is showing how differences in resource mixes, operating conditions, and market needs across the West are creating new opportunities for coordination and more efficient use of resources. This will be especially important as summer heat drives up energy demand across the West, where the market is heading into tougher conditions, providing an early test of whether the new system can perform under pressure. As we head into summer, we're excited to follow CAISO's daily performance reports to see how improved forecasting, coordination, and day-ahead trading decisions can help optimize resources, reduce costs, and strengthen reliability across the region.
EDAM Congestion Revenue Design Remains in Play: Stakeholders are expressing concerns about how EDAM will allocate congestion revenues. Some utilities emphasized the need for solutions that protect transmission customers without delaying EDAM implementation. CAISO is expected to bring a revised congestion revenue allocation plan for approval in 2027.
New Western RA Team: EDAM participants are developing their own resource adequacy program and are working through design components and stakeholder comments through workshops. The RA work group plans to host more workshops throughout the summer and fall. It anticipates that the ROWE will oversee the RA program and aims to have a draft proposal ready in November for the ROWE board to consider. Visit the ROWE website for more information about upcoming workshops and to view past workshop materials.
WRAP Team Restructuring: Currently, the Western Power Pool (WPP) administers WRAP, while SPP manages the program's technical platform. Under a proposed realignment, WPP would take full ownership of the planning side of WRAP, while SPP would manage the operational side to better align with day-ahead markets. The purpose would be to streamline responsibilities and help WRAP better support participants without changing the program's underlying rules.
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State and Regional Updates |
BPA Subs in New Administrator: Travis Kavulla has officially taken over as the new Administrator of the Bonneville Power Administration. In his opening remarks, he emphasized the importance of efficient, trusted markets and of avoiding seams. While there have been no announcements about BPA changing its markets decision, Administrator Kavulla mentioned plans to have further conversations with stakeholders before sharing a final decision.
Oregon PUC Chair Calls Foul on Seams: Unfortunately, seams will run throughout Oregon if current market commitments pan out, and Oregon PUC Chair Letha Tawney warned that this will create challenges for state regulators who may lack the expertise needed to identify market issues. She called for greater communication and collaboration to make sure seams do not create unnecessary costs or reliability risks for customers.
Idaho Power Still Contemplating Market Option: During the Western Conference of Public Service Commissioners, Idaho Power confirmed that they were still weighing their options as to which day-ahead market they will join. Their last indication was in 2024, when they were leaning towards joining EDAM.
FERC Makes the Call on Black Hills and NorthWestern Merger: Much as a referee oversees a game, FERC plays a similar role overseeing the playing field for energy markets. It recently exercised this authority in approving the proposed merger between Black Hills and NorthWestern Energy. This could be a significant move for the West as the combined company's footprint could influence the evolving landscape of Western day-ahead markets. NorthWestern and Black Hills are expected to make day-ahead market decisions this year, pending state PUC approvals.
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