Western Power Pool Statement in Response to WRAP Participant Letter to Stakeholders

April 22, 2024, 11:16 a.m. by Sarah Edmonds | Last modified April 22, 2024, 11:20 a.m.

Participants in the Western Resource Adequacy Program (WRAP) published a letter today in which they stated they will not elect to move to a binding program in Summer 2026. Instead, participants will propose a revised WRAP transition plan with the goal of beginning a binding program in 2027.

We have worked closely with participants as they considered this decision. WPP will continue working with them as they develop their revised transition proposal.

Our goal has always been to have a critical mass of participants in a binding program so that the West will be able to address urgent reliability needs. That has not changed, though when and how we get there may look different than planned. Like the participants, our efforts will be focused on gaining commitment from a critical mass of participants for Summer 2027.

In their letter, participants reiterated their ongoing support of WRAP and the critical role it plays in ensuring reliability in the West. In fact, the circumstances that contributed to their decision show why a program like WRAP is needed now more than ever.

There is a legitimate question about whether the West will have adequate resources in the years to come. WRAP is the only regional program that specifically addresses that question. We welcome the various markets in development or under discussion in the West, but their benefit comes with the efficient and economic dispatch of resources at times of need. That only works if there are adequate planned resources available to dispatch.

WRAP is designed to ensure we have enough resources for any market to meet customer needs. As the participants noted in their letter, WRAP has built a foundation for assessing whether we have enough resources with an established set of common reliability metrics. The ability to measure progress against common, analytically derived metrics is a testament to the importance of a regional program. It is a foundation from which we can build.

In the meantime, we all need to look at the transition period in a new way. While the program is still non-binding, WPP will focus on how we can collect more and better data from participants. We can use that information for more transparent regional discussions about events where capacity is constrained as we work toward going binding.

WPP looks forward to receiving the participants’ transition plan proposal. As we move toward 2027 and a binding program, we will work with participants and stakeholders to assess what changes may be necessary considering the adequacy challenge facing the region. The robust governance process and independent Board of Directors were created to handle important policy decisions, such as the revised transition plan. Ultimately, they will decide on these or any other improvements that will allow the benefits of WRAP to come to fruition.

Sarah E. Edmonds, President, Western Power Pool

WRAP RAPC Participant Binding Season Letter

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WRAP RAPC Participant Bi… (.pdf)
Last updated April 22, 2024