A new task force is examining how the Western Power Pool’s Western Resource Adequacy Program (WRAP) can continue to operate efficiently under the new multimarket environment emerging in the West.
The WRAP Day-Ahead Market (DAM) Task Force held its second meeting July 17 and discussed some of the thorny issues that lie ahead for the resource adequacy program as CAISO and SPP prepare to launch their respective day-ahead markets. The group’s members include entities like Bonneville Power Administration, Idaho Power, Portland General Electric and Powerex.
The purpose is to present a proposal aimed at enhancing WRAP’s Operations Program to make it compatible with both SPP’s Markets+ and CAISO’s Extended Day-Ahead Market (EDAM). The task force is focusing on market optimization and changes to transmission requirements in WRAP’s Southwest Region. (See WRAP Members Align on Key Issues to Prioritize.)
Representatives from participant organizations will chair the task force and formulate the proposal.
“WRAP was designed to work alongside all markets, as well as for participants who do not join a market,” Michael O’Brien, WPP’s senior policy engagement manager for the WRAP, told RTO Insider. “Much of WRAP’s design was created before EDAM and Markets+ existed, though. This task force will look at if and how WRAP should be optimized to work alongside the markets. It’s a chance to re-examine WRAP’s Operations Program through the lens of the day-ahead markets to potentially identify any efficiencies and opportunities, such as taking advantage of market optimizations and internal connectivity.”
Attendees of the July 17 meeting discussed issues such as data sharing between WRAP and market operators, handling holdback requirements, energy deployment and delivery, serving load in different markets and settlement pricing, among other potential challenges.
The group will meet throughout the summer and fall to create a formal proposal that will go out for public comment and review by program committees.
“If approved, the proposal could result in changes to business practice manuals or a potential FERC filing to make changes to the WRAP tariff,” according to O’Brien. “While the task force will look at WRAP through the lens of the day-ahead markets, the scope of the task force is limited to modifications of WRAP only.”
WPP launched the WRAP in response to industry concerns about resource adequacy in the West.
Under the program’s forward-showing requirement, participants must demonstrate that they have secured their share of regional capacity needed for the upcoming season. Once WRAP enters its binding phase, participants with surplus must help those with a deficit in the hours of highest need.
The binding phase also includes penalties for participants that enter a binding season with capacity deficiencies compared with their forward showing of resources promised for that season.
In 2024, the binding phase was postponed by one year at the request of participants, who said they were facing challenges including supply chain issues, faster-than-expected load growth and extreme weather events that would make it difficult for them to secure enough resources and avoid penalties. The binding phase is now expected to start in summer 2027. (See WRAP Members Vote to Delay ‘Binding’ Phase to Summer 2027.)
