The New Mexico Public Regulation Commission will dive into a report on the financial implications of a Western day-ahead electricity market during a workshop Jan. 25.
The workshop is part of the PRC’s research into the pros and cons of utility participation in a regional day-ahead market or RTO. The PRC plans to develop “guiding principles” for utilities to consider in deciding whether to participate.
During the workshop, the regulators will hear a presentation from Energy+Environmental Economics on the cost-benefit study, which E3 prepared for the Western Markets Exploratory Group. WMEG is a coalition of transmission-owning entities covering most of the Western Interconnection. (See Study Shows Uneven Benefits for Calif., Rest of West in Single Market.)
E3 also conducted additional economic analysis for individual WMEG members. Results for two New Mexico utilities — Public Service Company of New Mexico (PNM) and El Paso Electric (EPE) — will be shared during the workshop.
Commissioner Gabriel Aguilera said there are several issues to consider in an RTO or day-ahead market decision, including transparency, seams and reliability.
But from a regulator’s perspective, the most important questions are “will the market design lead to financial benefits to ratepayers?” and “will the benefits outweigh the costs?” Aguilera told RTO Insider.
The commission doesn’t currently have a timeline for finalizing its guiding principles, but Aguilera acknowledged the need to act quickly.
PNM has said it expects to decide this year on joining a regional day-ahead market. The two options are CAISO’s extended day-ahead market (EDAM) or SPP’s Markets+ offering.
In December, FERC approved the tariff for EDAM. And SPP expects to file a Markets+ tariff with FERC early this year. (See CAISO Wins (Nearly) Sweeping FERC Approval for EDAM and IMIP Approves SPP Markets+ Governance Tariff Language.)
The upcoming meeting is a follow-up to a workshop in September that featured presentations from PNM, EPE and Southwestern Public Service Co. (See New Mexico Contemplates Organized Market Choice.) PNM and EPE will give an update during the upcoming meeting, according to the agenda.
Aguilera said the commission is seeking as much input as possible.
The workshop will begin at 2 p.m. MST. Those who wish to comment may attend in-person or via Zoom.
To attend the meeting via Zoom, email public.comment@prc.nm.gov or call (505) 490-7910. The deadline to sign up for public comment is 5 p.m. Jan. 24, or 5 p.m. Jan. 19 for those who want to participate in the meeting’s question-and-answer session.
The meeting will also be streamed on the PRC’s YouTube channel.