OCTOBER 2024 ISSUE

Markets+ Friends -

SPP presents this monthly newsletter compiling timely, useful information related to Markets+ development. Have questions or comments? Email marketsplus@spp.org. We’d love to hear from you.

SPP's response to the Oct. 1 Brattle study

SPP wasn’t invited to participate in the newest Brattle study, so we’re still reviewing its results in detail for the first time. Our initial read of its overall conclusions illustrates a number of limitations in its methodology and scope, however.


The study makes some false assumptions and draws unhelpful parallels among SPP’s WEIS and CAISO’s WEIM markets, as the SPP WEIS design is not relevant to a comparison of Markets+ and EDAM. WEIS is a separate service provided under a different tariff than Markets+. The study  assumes Markets+ will not include real-time unit commitment, although it is clearly defined in the Markets+ tariff filing currently being reviewed by FERC.


Beyond our assessment of the study’s conclusions, SPP also notes that its scope is limited and ignores a number of factors that stand to distinguish it from other options. Production cost studies don’t tell the entire story. Apart from the unique Markets+ design elements that will benefit all western entities, participants will benefit from an independent and transparent governance and robust stakeholder process that values all participants equally.


While we’re still reviewing the new Brattle Group report, we look forward to ongoing conversations about how Markets+ will bring additional affordability, reliability, equity and sustainability to the West.

SPP's response to FERC deficiency letter


SPP filed its response to the Federal Energy Regulatory Commission's (FERC) Markets+ tariff deficiency letter Sept. 20. This was well within the FERC-requested Sept. 30 response deadline, and SPP is confident it provided sufficient information to satisfy the commission’s concerns. SPP has requested a response from FERC within 60 days and hopes to receive FERC approval of the Markets+ tariff by November 20. You can read SPP’s response here.

Phase two agreements


SPP continues to work on phase-two funding agreements with phase-one participants and other parties interested in joining the next phase of Markets+ development. Agreements will ensure funding of the $150 million required for software and hardware acquisition, staffing, testing and parallel operations associated with Markets+ build-out and launch. SPP still plans to receive executed agreements by the end of the year.

GHG protocol language approved

Following months of engagement and negotiation, the Markets+ Greenhouse Gas Task Force approved protocol language that defines the mechanisms that Markets+ will use to track and report on greenhouse gas (GHG) emissions. The group’s vote was unanimous – with four entities abstaining – which is a tremendous achievement considering the diverse perspectives and interests represented among the 20+ participating entities.

The task force will next recommend approval of their proposed language to the Markets+ Design Working Group, who in turn will present it for final approval by the Markets+ Participant Executive Committee (MPEC), a committee comprising representatives of every entity that has signed a funding or participant agreement to be part of Markets+ phase-one development.

 

The GHG design will be incorporated into the overall market protocols that will guide Markets+ build-out. The phase of market development is scheduled to begin in early 2025, pending FERC approval of the Markets+ tariff and execution of funding and participant agreements by interested parties, all expected between now and the end of this year. Markets+ is currently slated to go live in May 2027. 

Development briefing scheduled for Oct. 18


A Markets+ development briefing is scheduled for Oct. 18, from 12-2 p.m. CT/11-1 p.m. MT/10-12 p.m. PT. This webinar will cover status updates, SPP’s perspective on hot topics and an audience Q&A session. If you have a question you’d like to see answered in the webinar, please submit it to marketsplus@spp.org. The deadline to submit questions is Oct. 11. 

Register Now

September protocol development

The following protocol sections have been approved by the associated working groups and will be going before the MDWG and MORWG this month:

  • Section 4.5.5 (Settlement Location LMPs and LMP Comp)
  • Section 4.5.6.1 (FERC Electric Quarterly Reporting)
  • Section 6.1.3 (Congestion Rent Verification Process)
  • Section 6.3 (Congestion Rent Reporting)
  • Sections 5.8 (GHG Tracking and Reporting) to 5.8.7 (Public GHG Report Disclaimer)
  • Section 9 (Market Registration)
  • Section 11 (Market Monitoring Mitigation)
  • Appendix A (Meter Technical Protocols)
  •  Appendix B (Settlement Metering Data)
  • Appendix C (Network and Commercial Model Update Timing)

IMIP Issues Letter on Western Market Benefits

The Interim Markets+ Independent Panel (IMIP), the highest level of authority for decisions related to Markets+, released a letter Sept. 19, sharing information and their perspective on the benefits of western markets.


“Markets+ means another path to meeting carbon reduction timelines; it swiftly provides a proven governance structure that allows western market participants to define their market solutions; it provides a long-term resource adequacy framework that is the best option available today for producing a system that brings supply and demand into balance,” said the IMIP in their letter. “And it does all of this at an attractive lifecycle cost."


You can read the letter here.

SPP Perspective Pieces

SPP has released two perspective pieces related to the IMIP’s letter. These pieces are part of a series of Western market pieces from SPP’s perspective. The first piece, “The Markets+ Timeline: Responsive, Not Rushed,” was published Sept. 19. The second piece, “The Value of Multiple Markets in the West,” was published Sept. 26. Both pieces are available on marketsplus.org.

Markets+ Issue Alerts Continue

Markets+ participants released a new issue alert as part of a series identifying and explaining the key governance and market design elements of Markets+ and why these differences have important consequences for customers in terms of reliability, economic value, and environmental objectives. The newest alert details the equitable resolution of seams issues in Markets+. You can read the seams issue alert here.

Carrie Simpson Receives WPTF Award

Carrie Simpson, SPP senior director of seams and western services, was awarded the 2024 Western Power Trading Forum (WPTF) Kent Wheatland Memorial Award. This award is given to individuals in recognition for their contribution to the advancement of competitive wholesale and retail power markets. “I am grateful for the recognition and look forward to continuing to work with everyone on power markets in the West,” said Simpson.

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