As a next step in deciding which of two competing Western day-ahead markets to join, two New Mexico utilities are commissioning a study of transfer capability under different market scenarios.
Public Service Company of New Mexico (PNM) and El Paso Electric expect to have the results of the study in July, according to New Mexico Public Regulation Commissioner Gabriel Aguilera.
Aguilera mentioned the study during a PRC workshop May 17 on utilities’ regional market participation. The commissioner has coordinated what so far has been three workshops on the topic.
Aguilera said he’s planning another workshop in August in which PNM and El Paso Electric can discuss “the transfer capability that exists into either market. And especially with respect to the transmission rights that they have, and other entities could have [in] either option.”
“The connectivity is really going to be a big factor in any decision that the utilities make,” Aguilera said.
The PRC opened a docket last year and has held workshops with the goal of developing guiding principles for utilities’ participation in a day-ahead market or RTO.
Aguilera invited entities to submit a draft guidance document for the commission to consider.
The May 17 workshop featured presentations from CAISO on its Extended Day-Ahead Market (EDAM) and from SPP on its Markets+ offering. CAISO and SPP representatives discussed governance, market design and implementation timelines for their respective markets — similar to ground they covered in other recent presentations. (See Nevada RTO Proceeding Examines EDAM, Markets+ Design.)
Both markets were developed with extensive stakeholder input.
In fact, Aguilera said, participation has been so extensive it has left some stakeholders feeling overwhelmed and getting left behind in the process. But other stakeholders “have more resources and a lot at stake,” he added.
“When you think about a stakeholder-driven process, it sounds great,” Aguilera said. “In practice, if it’s really these entities that have the most resources driving it, then it’s not really fair.”
In particular, consumer advocates and state regulators need a larger role, he said.
In addition to an August workshop on transfer capability, the commission might invite presentations from the West-Wide Governance Pathways Initiative and the Western Resource Adequacy Program (WRAP). The Pathways Initiative is an effort to create the governance framework for an independent market that expressly includes the state-run CAISO.
Commissioner James Ellison said the August workshop will address a key topic.
“The market design is important, but you’ve got to have the capacity for the regional exchanges to happen in order for the market to be valuable,” he said.
Ellison said New Mexico is unique in having merchant transmission lines being built primarily to send wind power to California.
He said New Mexico ratepayers could benefit from California imports, which at times dip into negative pricing because of excess solar resources.
“I do think that consideration should be given to the ability of these merchant lines to allow for that regional market participation,” Ellison said.