Studies & Reports
Western Day-Ahead Seams Market Exploration
Given the development of two different day-ahead markets in the West, there has been considerable discussion and speculation about market seams. While the West already manages a significant number of seams, it lacks extensive experience in managing seams between organized markets. Because of this, Public Generating Pool and Western Power Trading Forum decided to partner together, along with Energy Strategies, to develop information for its members and the stakeholder community on the types of tools used to manage seams in other parts of the country and whether and how those tools may be applied to seams between day-ahead markets in the West.
This work aims to provide a framework for understanding seams and is not intended to convey a position on how the West should proceed in its market development. Ultimately, what we learned is that, while seams issues are manageable and many tools exist to enable greater efficiency across market seams, those tools were developed in the context of fully integrated RTOs and not in the context of day-ahead markets only. Therefore, these tools, while instructive, may not necessarily be directly applicable in the context of where the West is currently in its market evolution.
The study also highlights several potential seams issues that are outside of the economic seams managed by the RTO toolkits, but that are nonetheless important considerations for the West as we envision a two-market future. Our seams exploration is a starting point for understanding the potential seams and seams issues that we might expect with two day-ahead markets and can serve as a launching point for more detailed discussions as more about the nature of the actual seams become known.
Greenhouse Gas and Clean Energy Accounting Methodology Catalog
This study presents a catalog of Greenhouse Gas (GHG) and clean energy accounting methodologies in use across the Western U.S., inclusive of practices used under Renewable Portfolio Standards (RPS); energy supply mix disclosure programs; mandatory GHG reporting and reduction programs; and voluntary utility and end-use consumer reporting. This catalog aims to provide a representative, but not necessarily comprehensive, description of the GHG accounting practices in use today by utilities across the West, and is derived from a combination of detailed interviews with 15 participating utilities; program information provided by participating utilities; public documentation of required accounting practices under the various programs; and our own research.
PGP Market Evaluation
The goal of the assessment was to help PGP members understand how they may be affected by new energy market structures that could emerge in the coming years, including day-ahead markets and regional transmission organizations (RTOs). The study examined how the operations of differently situated “proxy portfolios”, which comprise loads, generation, contracts, and market access assumptions, are likely to be affected by the new market constructs under two study horizons: 2022 and 2030.
Organized Market Retrospective
In an effort to support PGP member utilities in their evaluation of organized markets, PGP conducted a review of past organized market efforts in the West. The Organized Market Retrospective report includes a summary of market functions that are typically shared under an organized market, an overview of the past initiatives to create an organized market, and a summary of key takeaways and proposed next steps.
Achieving Western States GHG Reduction Objectives
Many states are embarking on aggressive state policies aimed at reducing GHG emissions, with particular attention aimed at largely or fully reducing GHG emissions from the electricity sector over medium-term horizons (e.g., by 2040). The regulatory compliance design will have impacts on electricity markets and the effectiveness of the policies. To analyze different regulatory approaches and their impacts on electricity market participation, the Public Generating Pool, in collaboration with PacifiCorp, sponsored a study by The Analysis Group.
The study considers and compares the impacts associated with resource-based accounting, which focuses on the procurement made by the utility, versus flow-based accounting, which focuses on tracking the electricity flows and delivered energy to customers. The comparison of the two approaches led to several conclusions regarding compliance systems for state-level decarbonization policies:
Physical realities of the electricity system make flow-based, source-to-load tracking of attributes or emissions infeasible, impractical, or inefficacious.
Resource-based accounting is compatible with market-based transactions, thus supporting the evolving market structures that will be important for the feasibility and cost-effectiveness of decarbonization policies.
Resource-based accounting offers more compliance flexibility, particularly with regard to the electricity delivery timing.
Resource-based systems are less administratively burdensome and can draw on experience from approaches used for compliance by states with RPS policies in the Northeastern and mid-Atlantic US.
Flow-based systems are not currently used anywhere in the US. Variants of a resource-based system are used in other jurisdictions in the US.
Consideration will need to be given to how to integrate compliance with RPS/CES policies and emissions-based policies.
Resource Adequacy in the Pacific Northwest
The ability to maintain Resource Adequacy under certain scenarios was identified as a concern during the 2017–2018 E3 studies. Scenarios that limit the building of new natural gas or decarbonization beyond 80% below 1990 levels were identified as needing a different model to evaluate the adequacy of the system. As a result, the Public Generating Pool, in collaboration with Puget Sound Energy, Avista, and Northwestern, sponsored a study that examines the adequacy of the power system in 2018, 2030, and 2050 under different decarbonization levels.
Pacific Northwest Low Carbon Scenarios
The Public Generating Pool, in collaboration with Energy Northwest, sponsored a study that investigates an approach to simultaneously achieve environmental and economic goals in the electric sector. If the Western states are to evolve policies further to achieve carbon emissions goals, PGP believes it is important for efforts to be informed by an understanding of which alternatives are least-cost and most effective in achieving substantial reductions from 1990 levels. PGP believes that this study employs a useful planning methodology for informing public policy decisions aimed at reducing carbon emissions. A least-cost planning methodology is technology-neutral, can be expanded to other sectors, and can be adapted to changing conditions over time.