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.
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