BPA staff recommends agency join SPP Markets+ day-ahead market

BPA staff identified governance, resource adequacy requirements and greenhouse gas accounting and other favorable attributes in their recommendation for BPA to participate in a day-ahead energy market and that BPA should join the Southwest Power Pool's Markets+ initiative. 

Since summer 2023, the team making the recommendation has been working with customers and constituents and analyzing Western Interconnection day-ahead market options offered by the SPP and the California Independent System Operator. The team has also engaged in market development efforts with both SPP and the CAISO.

“I appreciate the coordination the team has done with BPA customers and interested parties across the Pacific Northwest," said BPA administrator/CEO John Hairston. “The solid analysis they have completed and work they will do between now and August, including continued public and customer engagement, make me confident I can make the right decision for BPA and the region."

BPA has scheduled three public workshops between May and August that will allow customer and constituent feedback on the recommendation. Those workshops will allow for further day-ahead market analysis and additional opportunities for entities to provide comments and influence the Administrator's final decision. BPA will release a draft record of decision in August for review by customers and interested parties with a final decision scheduled for November.

“We stuck to our evaluation principles and are confident in the analysis and public process that led to the recommendation," said Director of Market Initiatives Russ Mantifel. “Both markets we are considering honor those principles; however, ongoing concerns with governance and some superior features related to greenhouse gas accounting and resource adequacy among others led to staff's preference for Markets+."

The staff recommendation references analysis performed by the Western Markets Exploratory Group (WMEG) study results as a key underpinning in its decision. That study shows positive economic benefits for BPA in most scenarios. BPA intends to analyze several different scenarios as a follow-on to the WMEG study and will brief the public and invite comments on the additional quantitative results during the upcoming workshops in summer of 2024.

“BPA customers and constituents have been with us every step of the way in this day-ahead market analysis and decision-making process," said Chief Business Transformation Officer Nita Zimmerman. “Their input is vital as we work our way to a final decision later this year."

The full recommendation policy paper is available at https://www.bpa.gov/learn-and-participate/projects/day-ahead-market.