What a busy month! As they say, April showers bring May flowers, and this month, we saw that new spring growth show up in the form of a flurry of utilities across the West announcing day-ahead market decisions. Read more to find out what is starting to sprout
April Showers Bring May Flowers... And More Market Decisions
What a busy month! As they say, April showers bring May flowers, and this month, we saw that new spring growth show up in the form of a flurry of utilities across the West announcing day-ahead market decisions. Read more to find out what is starting to sprout.
Leah Rubin Shen, Managing Director at Advanced Energy United
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Day-Ahead Market Updates Across the West
BPA Announces Intent to Join Markets+
Probably the biggest news this month was the Bonneville Power Administration's formal announcement of its intent to join SPP Markets+. While not surprising, this decision is both disappointing and significant as it further cements the likelihood that the West will fragment between two day-ahead markets, undermining the greater reliability, affordability, and environmental benefits that a unified regional market would yield. Lawmakers, utilities, and advocates across the West, including those in BPA's territory, expressed concerns and warned that this decision will increase costs for customers.
It is also worth noting that BPA's decision to join Markets+ is widely viewed as essential to the viability of the market and could influence other Northwest entities to commit as well.
Puget Sound Energy Joins Markets+
Sure enough, just days after BPA confirmed its decision, Puget Sound Energyfollowed suit and announced its intent to join Markets+ as well, referencing its reliance on BPA transmission and its preference for the market's governance structure.
Colorado PUC Considers Xcel Energy's Application to Join Markets+
This week, the Colorado Public Utilities Commission wrapped up hearings on Xcel Energy's application to join Markets+. These hearings also coincided with the release of a new report, commissioned by EDF, that raises concerns about the utility's $30 million dollar plan.
The report finds that joining Markets+ would result in higher costs and emissions for Colorado compared to joining EDAM. The Colorado Sun reported on the growing opposition to Xcel's proposal from advocates who questioned the lack of benefits and high upfront costs. The Commission is expected to make a decision in mid-July.
In addition to the report, EDF also recently published a blog on this topic.
Markets+ Phase 2 Development
With FERC's full approval of the Markets+ tariff, SPP has started Phase 2 of its day-ahead market development, which begins the full market buildout. As a reminder, Phase 1 governance was built on stakeholder agreements, which will terminate at the start date of Phase 2 financing. Entities must sign a participation agreement by July 23 to be eligible to take part in Phase 2 stakeholder working groups and task forces. To learn more, there is an informational webinaron June 30.
Utah Parties Request Investigatory Docket into PacifiCorp joining EDAM
Utah's Division of Public Utilities and Office of Consumer Services, along with the Utah Association of Energy Users, jointly requested an investigatory docket to examine PacifiCorp's decision to join EDAM. A technical conference is expected to be scheduled soon to explore key issues such as how EDAM implementation may impact transmission customers and retail ratepayers.
Imperial Irrigation District Commits to EDAM
The Imperial Irrigation District approved a $24 million budget to join EIM and EDAM, which it states will save its customers millions annually and modernize its energy operations. As many of you may know, IID's decision to join, unlike other California public power utilities that have already been in the EIM for some time, is quite significant.
Pathways Initiative Updates
California Legislation
SB 540, the Pathways bill, advanced through another legislative hurdle, passing out of the Senate Appropriations Committee with a 4-1 vote. It now heads to the Senate floor. An amendment was also adopted in Appropriations that would create an oversight council to oversee California's participation in regional energy markets. Additionally, the bill was amended yet again yesterday to refine many of the amendments adopted last month in the Judiciary Committee. While some of these amendments present significant concerns, there are commitments from the bill authors and from other key parties to continue to work towards a deal that is satisfactory to all sides. The back-and-forth can seem confusing and even frustrating, but the California legislative session is long and this kind of sausage-making is common.
Stakeholder Engagement Updates
Earlier today, the Launch Committee hosted its monthly stakeholder meeting, which included a discussion of the draft proposal for seating the initial RO board. The next meeting will be on June 27 from 12 pm PT/11:30 am to 1 pm MT. Zoom link here.
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