Western Resource Adequacy Program (WRAP) Overview
The Western Resource Adequacy Program (WRAP) is a voluntary compliance program designed to enhance regional resource adequacy and operational efficiency for various power utilities. By leveraging regional diversity, WRAP aims to optimize planning reserve requirements and ensure access to critical resources during high-demand periods. The program is structured with distinct implementation phases and emphasizes stakeholder engagement, technology integration, and governance protocols. With structural points of distinction such as an independent board and no market dispatch, WRAP offers a unique approach to ensuring capacity reliability and grid stability across multiple states. Key design features include annual modeling, seasonal compliance periods, and firm transmission requirements to promote system resilience and mitigate non-compliance risks.
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Presentation Transcript
RESOURCE ADEQUACY: REGIONAL OPPORTUNITIES Power Association of California April 19, 2023 Sarah Edmonds, Western Power Pool 1
THE WESTERN RESOURCE ADEQUACY PROGRAM (OR WRAP) IS . A voluntary resource adequacy compliance program which seeks to leverage significant regional diversity to deliver benefits in both the planning and operations functions of the program. Planning: ability to safely lower planning reserve requirements and inform resource needs for the region Operations: access to the WRAP resource adequacy capacity pool during the worst of days 2
WESTERN RESOURCE ADEQUACY PROGRAM ( WRAP ) Arizona Public Service Avista Bonneville Power Administration Calpine Chelan County PUD Clatskanie PUD Eugene Water & Electric Board Grant PUD Idaho Power Northwestern Energy NV Energy PacifiCorp Portland General Electric Powerex Public Service Company of New Mexico Puget Sound Energy Salt River Project Seattle City Light Shell Energy Snohomish PUD Tacoma Power The Energy Authority 3
WRAP IMPLEMENTATION Transition Seasons Non-Binding Forward Showings Summer (binding) Summer (transition) Summer (NB FS / Ops Trial) Summer (transition) Summer (transition) Summer (NB) 2026 2027 2023 2028 2024 2025 Winter (transition) Winter Winter (NB) Winter (transition) Winter (transition) (NB first NB Ops) FERC Order!! Binding Program Without Transition Provisions Non-Binding Operations Program Continued Development of Stakeholder Engagement Structure and Technology (Feb 2022 2023) Business Practice Development and Public Review (Jan 2023 early 2024) Implement Approved Tariff Governance (Feb April 2023) Expecting to welcome new participants in September 2023 4
STRUCTURAL POINTSOF DISTINCTION Independent Board No Market Dispatch Voluntary Stand-Alone Multi-State No Backstop 5
DESIGN DISTINCTIONS Annually Modeled Planning Reserve Margin/Reliability Metrics Seasonal Compliance Periods (Summer and Winter) Capacity Critical Hours Approach Common QCC Rules Transmission Requirements Firm, Specified Imports Strong Non-Compliance Charges 6
QUALIFYING CAPACITY METHODOLOGY California RA California RA Wind and Solar : Wind and Solar : ELCC Hydro: Hydro: Exceedance based on 10-yr history with greater weight given to low hydro years Thermal: Thermal: PMax Short Term Storage Short Term Storage: PMax Hybrid Resource: Hybrid Resource: Sum of parts method: ELCC for renewable and PMax storage Demand Response (supply Demand Response (supply- -side): side): Econometric estimation of load responsiveness Demand Response (load Demand Response (load- -side); side); modifier to requirements External Resources (imports): External Resources (imports): resource-specific imports much have firm transmission to CAISO border. Both resource specific and non-resource specific imports must have maximum import capability (MIC) rights issued by CAISO. CPUC requires energy from import capacity to flow to into CAISO. service rights (or network integration transmission service rights) from the identified source to the point of delivery/load WRAP WRAP Wind and Solar: Wind and Solar: ELCC Run Run- -of of- -River Hydro: River Hydro: Historical output on Capacity Critical Hours Storage Hydro: Storage Hydro: WPP-developed hydro model that considers the past 10 years generation, potential energy storage, and current operational constraints Thermal: Thermal: UCAP (resource capability is adjusted to reflect historic forced outage rates during capacity critical hours) Short Term Storage Short Term Storage: ELCC Hybrid Resource: Hybrid Resource: Sum of parts method - ESR will use ELCC and generator will use appropriate method Customer Side Resources: Customer Side Resources: load modifier or capacity resource External Resources (imports): External Resources (imports): must be supported by an identified source, an assurance that the capacity is not used for another entity s resource adequacy requirements, an assurance that the seller will not fail to deliver in order to meet other supply obligations, and affirmation of NERC priority 6 or 7 firm point-to-point transmission 7
CONCEPTUAL FOOTPRINT WRAP WITH MULTIPLE MARKETS 8
Continued work on market interoperability Relationships and dialogue California RA Program WECC and others Data sharing opportunities Aggregated, non-commercially sensitive Calibration on import assumptions between RA programs REGIONAL RA COORDINATION OPPORTUNITIES 9
