WAPA - Western Area Power Administration
10/30/2024 | Press release | Distributed by Public on 10/30/2024 11:59
WAPA’s Sierra Nevada region to pursue day-ahead market participation
FOR IMMEDIATE RELEASE: Wednesday, Oct. 30, 2024
CONTACT: Stephen Collier, [email protected], 720-962-7411
LAKEWOOD, Colo. - Western Area Power Administration has announced that its Sierra Nevada region will pursue final negotiations toward full participation in the California Independent System Operator's Extended Day-ahead Market.
SN and the Balancing Authority of Northern California, which SN operates within, join utilities including the Los Angeles Department of Water and Power, PacifiCorp and Portland General Electric that have announced their intent to participate in CAISO's EDAM, along with NV Energy and Idaho Power who have indicated their leaning toward EDAM participation.
In spring 2021, SN began participation in CAISO's real-time Western Energy Imbalance Market. Following the success of WEIM, CAISO is planning to expand the market in the much larger day-ahead timeframe under EDAM.
Similar to WEIM, the EDAM is a voluntary electricity market designed to deliver significant reliability, economic and environmental benefits to balancing areas and utilities in the West. By leveraging the significant resource diversity and transmission connectivity between major supply and demand regions in the western United States, the EDAM is designed to deliver additional benefits to those realized in the WEIM through greater resource coordination and optimization.
"Working closely with the Balancing Authority of Northern California and our Sierra Nevada customers every step of the way, my staff and I look forward to engaging with CAISO through final negotiations to join this promising day-ahead market development," said WAPA Administrator and CEO Tracey A. LeBeau. "Our dedicated staff will continue to solidify our working partnerships with BANC, customers and CAISO and resolve technical implementation details while ensuring the best possible outcomes for our customers and other stakeholders."
"BANC and its members are pleased with WAPA's decision to have the Sierra Nevada region join us in participating in EDAM," said BANC General Manager Jim Shetler. "SN's participation is key to our members realizing the full potential benefits of EDAM. We have appreciated WAPA's thorough evaluation process in making this decision and we look forward to working with SN in the EDAM implementation effort."
Participating in this initiative is consistent with WAPA's commitment to develop alternative ways of doing business that retain and increase the value of the resource WAPA markets and the services it provides its customers in a dynamic energy industry.
Since day-ahead transactions represent around 85% of energy sales, WAPA and other utilities partnering with CAISO would build on the proven benefits of the real-time WEIM, expand availability of resources and coordination within the day-ahead market, and enhance access to its services.
"Integrating WAPA's Sierra Nevada region along with BANC into EDAM is a crucial step towards realizing the vision of a fully integrated regional market," said Elliot Mainzer, president and CEO of CAISO. "Uniting resource-diverse utility partners across the West will enhance reliability, affordability and transmission connectivity. We are thrilled to see our valued partners taking these steps to solidify their position in this market at such a pivotal time."
Participation in EDAM is expected to provide significant cost savings and operational and reliability benefits, as demonstrated by several recent analyses including The Brattle Group's and Energy Strategies' studies.
SN, along with BANC, plans to go live in CAISO's EDAM in spring 2027.
Learn more about SN's activities with CAISO's EDAM.
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About WAPA: Western Area Power Administration annually markets and transmits more than 28,000 gigawatt-hours of clean, renewable power from 57 federal hydroelectric powerplants owned and operated by the Bureau of Reclamation, U.S. Army Corps of Engineers and International Boundary and Water Commission in 15 western and central states. It is part of the Department of Energy. Visit the website at www.wapa.gov.