The Western Power Pool’s Western Resource Adequacy Program (WRAP) has secured enough participants for the program to enter the first binding phase after 11 utilities reaffirmed their commitment in a Sept. 29 letter.

The utilities’ assurance that they will remain in the program comes shortly before the two-year opt-out deadline. The recommitment means WRAP has secured a “critical mass” of participants to move forward with the first binding season in winter 2027/28, WPP said in a statement on its website.

The letter is signed by Arizona Public Service, Avista, Bonneville Power Administration, Chelan Public Utility District, Clatskanie Public Utility District, NorthWestern Energy, Powerex, Puget Sound Energy, Salt River Project, Tacoma Power and Tucson Electric Power.

“As utilities that have actively participated in WRAP since its inception in 2019, we reaffirm our commitment to the program and to continue building on its strong foundation,” the letter stated. “The signatories to this letter will remain in WRAP and participate in binding operations starting in winter 2027/28.”

“The participants who have voiced their commitment to the program represent a broad and diverse group of organizations,” WPP said in its statement. “In addition to those who signed the letter, there are more participants we expect to remain in WRAP, some that recently joined and even more joining in upcoming years.”

WPP launched the WRAP in response to industry concerns about resource adequacy in the West. (See WRAP Participants Find Value in Program’s Nonbinding Phase.)

Under the program’s forward-showing requirement, participants must demonstrate they have secured their share of regional capacity needed for the upcoming season. Once WRAP enters its binding phase, participants with surplus capacity 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. WRAP members voted in September 2024 to delay the binding phase until summer 2027, but that date was pushed forward. (See WRAP Members Vote to Delay ‘Binding’ Phase to Summer 2027.)

WRAP has also become a focal point in the competition between SPP and CAISO. Both are developing separate day-ahead markets and are trying to attract as many participants as possible. Supporters of SPP’s Markets+ have highlighted that participants in the market must join WRAP, while arguing that CAISO’s Extended Day-Ahead Market (EDAM) contains no RA framework. Most of the signatories to the letter have committed to Markets+.

The organizations wrote in the Sept. 29 letter that WRAP continues to evolve, highlighting the “multiple task forces” involved in developing the program. One such task force is the WRAP Day-Ahead Market (DAM) Task Force that is working to make the program compatible with Markets+ and EDAM. (See WRAP Day-Ahead Market Task Force Moves Forward on Concept Paper.)

“We are confident the program will continue to grow and adapt,” the organizations said. “The program’s design will evolve alongside emerging day-ahead markets, while its broad participation ensures the collective savings and reliability benefits are delivered for customers.”

The utilities noted also that some current signatories to the program may still exit, but added that “the participants signing this statement represent only a portion of the utilities committed to WRAP’s long-term success.”

“By stepping forward now, we intend to demonstrate early momentum, provide confidence to those still weighing their options and signal that WRAP will continue to deliver value as it enters its binding phase,” the organizations wrote.

“We remain confident in the fundamental premise of WRAP and the value it brings,” WPP said. “Over the next two years, in addition to onboarding new members, we will focus on changes and updates to optimize the program and respond to concerns raised by participants and stakeholders. This will allow WRAP to maximize the benefits it delivers when binding operations begin and help address the growing challenge of resource adequacy.”