By Pete Danko – Staff Reporter, Portland Business Journal
Jul 25, 2024
Oregon's and Washington's U.S. senators on Thursday called on the Bonneville Power Administration to slow its roll on a "monumental" decision the regional power behemoth could soon make.
In a letter to BPA Administrator John Hairston, the four Democratic senators avoided stating a preference among two competing wholesale energy markets that are developing in the West. But they threw a barrage of questions at the agency and called on it "to refrain from making any draft or final decisions until there is less uncertainty and BPA can prove that any decision will provide the greatest benefit to the entire Northwest."
The issue is whether to join a "day-ahead" market being organized by California's major grid operator, or one a regional transmission organization in the Midwest is developing.
What a day-head market could mean
There's widespread agreement that such a market could pave the way to more efficient use of energy resources amid the pressures of load growth, decarbonization and transmission constraints. But the scale of the benefits could hinge on how united the West's dozens of utilities and grid operators are.
That's where the decision by BPA, which sells power from 31 federal dams and owns a big chunk of the transmission grid in the Pacific Northwest, comes into play.
BPA staff in April recommended Markets+ from the Southwest Power Pool as its best choice. The agency said then it would release a draft record of decision in August and a final decision in November.
Meanwhile, Oregon's two big investor-owned utilities, Portland General Electric and multistate player PacifiCorp,have thrown in with the California Independent Operator's Extended Day Ahead Market. The major IOUs in Nevada and Idaho also say they're leaning toward the EDAM.
The senators have questions
There's some debate over how harmful the "seam" such a split could create would be, but those who fear the outcome have clearly gotten the attention of the senators — Oregon's Ron Wyden and Jeff Merkley, and Washington's Patty Murray and Maria Cantwell.
Their 14 questions to BPA reflect the concerns expressed by regional energy players such as Renewable Northwest and Angus Duncan, a former Northwest Power and Conservation Council member.
The senators' letter also lauds "real progress" by the West-Wide Governing Pathways Initiative in addressing concerns of BPA and its public power customers about whether the EDAM can operate fairly and independently of California politics.
Still, the senators stopped short of recommending a move toward either market.
"Given the critical importance of this decision for the region, we want to be crystal clear: this letter should not be construed as favoring one market over the other," they wrote. "We share a strong belief that any decision of this magnitude warrants thorough evaluation of all options, including joining neither market at this time."
Asked for comment on the letter, a BPA spokesperson provided this written statement:
"BPA understands the magnitude of this decision and is committed to ensuring we do the right thing for our customers and the region through the deliberative process we have engaged in so far. BPA is committed to fully evaluating the benefits and mechanics of day-ahead markets to accomplish this objective."
