WRAP Day-Ahead Market Task Force Looks to Future After Commitments, Withdrawals
1st Meeting After WRAP Binding Deadline

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The Western Resource Adequacy Program Day-Ahead Market Task Force held its first meeting after the program’s binding decision deadline, with members exploring how the new participant footprint will impact transmission connectivity and other issues.

The Western Resource Adequacy Program’s Day-Ahead Market Task Force held its first meeting after the program’s binding decision deadline, with members exploring how the new, smaller participant footprint will affect transmission connectivity and other issues.

The task force was created to make WRAP compatible with the soon-to-be-launched SPP Markets+ and CAISO Extended Day-Ahead Market (EDAM). WRAP was designed before the two markets completed their designs. (See WRAP Day-Ahead Market Task Force Moves Forward on Concept Paper.)

Task force members in the Nov. 4 meeting discussed how to move forward after it became clear that most of the entities signing up for the WRAP’s first financially binding deadline have committed or lean toward Markets+.

“The DAM Task Force’s first meeting after the binding decision deadline was focused on understanding how the group should advance given the change in footprint and committed binding participation,” Michael O’Brien, WPP’s senior policy engagement manager for the WRAP, said in an email to RTO Insider.

“They agreed to explore how Markets+ could be leveraged to serve committed WRAP participants: those participating in Markets+ and those not participating in Markets+, while keeping an eye on how those who gave exit or may join in the future can leverage the DAM Task Force proposal to ensure they also receive the benefits of WRAP should they decide to participate in a binding season at some point,” O’Brien said. “It is a priority for WPP and a stated priority of the DAM Task Force that the proposals remain inclusive of future broader participation in WRAP.”

Interested participants had until Oct. 31 to commit to the program’s first binding season. Of the 16 committing, just two — Idaho Power and Seattle City Light (SCL) — have expressed leanings in favor of EDAM, although SCL’s geographic position adjacent to future Markets+ members — including BPA — could make participation in the CAISO market a challenge. (See WRAP Wins Commitments from 16 Entities.)

Among the five utilities withdrawing from the WRAP, four (NV Energy, PacifiCorp, Portland General Electric and PNM) have committed to joining the EDAM, while Eugene Water & Electric Board will be participating in Markets+ by virtue of its location within the Bonneville Power Administration’s balancing authority area.

With more clarity on which entities will participate, the task force should prioritize transmission connectivity, Matt Hayes, task force co-chair and program manager at the BPA, said at the Nov. 4 meeting.

“I think this group really needs to prioritize how we can bridge that gap between … the commercially available transmission, which is extremely limited, and the connectivity that the markets have throughout the region, which is pretty ample,” Hayes said.

Hayes also said the task force must push WRAP “to not only be something that holds people accountable but leverages to the greatest extent possible the geographic diversity we have and the diversity of resources to … not only ensure the resource adequacy is met, but also make it as cost-effective as possible for us.”

He noted some entities still are exploring whether to join a day-ahead market, saying, “I would caution about being too quick to focus on any one particular path.”

For Idaho Power, which is leaning to EDAM and committed to the WRAP’s first binding season — while expressing concerns about the program’s readiness, a key issue is connectivity requirements and how the utility should navigate between WRAP entities in the Desert Southwest with those in the Pacific Northwest, said Benjamin Brandt, director of load-serving operations at the utility.

“Idaho Power is somewhat between those two areas,” Brandt said. “So better understanding of the Markets+ footprint and connectivity … and what that might look like, I think that would be a good place for us to start.”

Derek Russell, director of power at Powerex, agreed, saying he wants the task force to refocus on “connectivity and deliverability” to ensure participants can rely on WRAP transfers.

“I think a focus of just reassessing what the region looks like and … how those transfers are enabled between participants, I think that should be a point of emphasis as we kind of go through towards an ultimate solution,” Russell said.

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