Technical Conference to Discuss the Resource Adequacy Developments in the Western Interconnection

Wednesday, June 23, 2021

12:30 pm – 12:45 pm:

Welcome and Opening Remarks from the Chairman and Commissioners

12:45 pm – 2:15 pm:

Panel 1:  Resource Adequacy Frameworks

Panelists will provide an overview of resource adequacy paradigms in the Western Interconnection to help establish a common understanding and context for the subsequent panels.  The panel will highlight similarities and differences in resource adequacy frameworks across the western regions, including the different types of utility integrated resource planning, as well as coordinated or regional resource adequacy frameworks such as those established by the California Public Utilities Commission or under development by the Northwest Power Pool.  The panel will also discuss the role of state utility commissions in resource adequacy in the West.  Panelists will discuss:  (1) their respective resource adequacy responsibilities and regulatory frameworks; (2) planning models and standards used to evaluate their resource needs; (3) mechanisms used to procure adequate resources; and (4) the coordination and cooperation required to successfully meet their goals, including interactions with state commissions and/or other existing resource adequacy frameworks. 

This panel may include a discussion of the following topics and questions:

1. Generally, what are the prevalent types of reliability standards and metrics applied in resource adequacy planning, including the types of planning margins used in identifying resource adequacy needs, and any trends or technological/regional characteristics in their usage.
    
2. Describe your entity’s (and if applicable, any state or regional) applied definition of “resource adequacy.”
    
3. Discuss, specifically, your entity’s framework and process for resource adequacy planning and procurement

a. Discuss how your entity’s (and if applicable, any state or regional) framework or process has evolved in recent years?

b. Which resource adequacy standards, metrics, and methodologies are used in determining your resource adequacy needs?  Discuss any notable adjustments that you have made in the last two-to-five years to the resource adequacy standards, metrics, or methodologies you employ.

c. Describe applicable procurement mechanisms for resource adequacy capacity.

4. What rules and regulations govern your resource adequacy process?

a. Discuss the level of state utility commission oversight that exists in the resource adequacy planning and procurement process.

b. How does utility integrated resource adequacy planning interact with state policy goals, such as renewable portfolio standards?

c. How do state rules or regulations interact with resource adequacy planning by cooperatives, municipal utilities, and public power utilities?

5. What is the level of coordination—either amongst utilities or states/regions—on resource adequacy standards and planning?  Describe any regional organizations or associations that serve as a platform for planning, coordination, or serve in an advisory capacity with regard to resource adequacy.

6. How is resource adequacy compliance enforced?  What are the consequences of not satisfying any applicable resource adequacy requirements?  What are the consequences for a counterparty supplier that fails to deliver its energy?

7. How are imports into your region or balancing authority (and import availability) assessed for resource adequacy?

a. To what extent is your region or balancing authority reliant on imports to meet resource adequacy?

8. What is the state of transmission availability for resource adequacy imports into your service territory (e.g., quantity, type, availability)?

Panelists:  

• Gregg Carrington, Chief Operating Officer, Northwest Power Pool
• Delphine Hou, Director, California Regulatory Affairs, California Independent System Operator Corporation
• Alice Jackson, Chief Executive Officer, Public Service Company of Colorado
• Frank Lawson, General Manager, Eugene Water and Electric Board
• Pete Skala, Director of Efficiency, Electrification, and Procurement, California Public Utilities Commission
• Jacob Tetlow, Executive Vice President of Operations, Arizona Public Service Company
• Jordan White, Vice President of Strategic Engagement and Deputy General Counsel, Western Electricity Coordinating Council

2:15 pm – 2:30 pm:

Break

2:30 pm – 4:30 pm:

Panel 2:  Trends and Regional Challenges in Resource Adequacy

Panelists will provide perspectives on evolving trends in the supply of—and demand for—electricity in the Western Interconnection, and anticipated challenges in meeting resource adequacy needs in light of these changes.  The objective of this panel is to gain insight into resource adequacy needs and challenges from both:  (1) a regional perspective, covering the Northwest, Desert Southwest, Rocky Mountain, and California regions; and (2) a participant perspective from the different types of relevant resource adequacy planning entities and technical experts (e.g., investor-owned utilities, public power utilities/districts, regional planning organizations, and state commissions).  Panelists will discuss the physical aspects (e.g., generation mix changes and the impact of energy storage resources, fuel supply security, climate change, and extreme weather events on the grid), technical aspects (e.g., resource adequacy methodologies and standards), and regulatory aspects of those trends and challenges. 

This panel may include a discussion of the following topics and questions:

1. What are the main physical trends affecting changes in resource adequacy needs and procurement?
   • What are the primary electric system and technological drivers influencing changing resource adequacy needs in the West (e.g., a changing generation mix, impact of storage resources and new technologies, fuel supply security, load or demand patterns)?  Please consider these from both an interconnection-wide perspective and a regional perspective.
   • What are the weather, geographic, and hydrologic conditions or trends influencing changing resource adequacy needs in the West?  Please consider these from both an interconnection-wide perspective and a regional perspective.
2. What are the chief challenges western regions and planning entities are currently facing in meeting resource adequacy needs?  Please consider challenges across the following planning dimensions:  metrics/measurements/methodology; governance/administrative; and policy (renewable portfolio standards or other state goals).
3. Discuss the challenges that exist in coordination and/or procurement given the level of diversity in regulatory and resource adequacy planning frameworks in the Western Interconnection.
   • Discuss, if applicable, challenges associated with double-counting of resources in planning processes.
   • What are the challenges in capacity valuations for various resources?  Discuss the resource types or conditions that might make capacity valuation more difficult for regions.
4. In addition to capacity-based challenges, what are the transmission-based complexities (such as congestion and availability) affecting each region’s ability to meet resource adequacy needs?  Describe any seams issues that present added complexities for consideration.
5. Please discuss any challenges within existing resource adequacy planning processes regarding stakeholder involvement and the impacts of resource adequacy planning on consumers.
6. To what extent are existing resource adequacy planning approaches able to meet evolving resource adequacy needs?  If you believe deficiencies exist, what aspects of planning need to adjust or evolve to meet changing conditions?
   • Do the existing deterministic and probabilistic evaluation methods (for example, planning reserve margin and the 1-in-10 standard) to determine resource adequacy meet operational needs of utilities and power system operators amid the emerging load and generation mix?
   • Should existing deterministic and probabilistic evaluation methods be reevaluated in light of added or expanded energy deliverability requirements (such as imports of energy and specific procurement)? 
7. Are there other techniques and metrics that address any deficiencies of the existing deterministic and probabilistic methods, and how might those techniques and metrics be implemented to attain improved resource adequacy?  Describe, if applicable, any trends or characteristics governing the adoption and usage of various metrics.

Panelists:

• Carrie Bentley, CEO, Gridwell Consulting
• Bryce Freeman, Administrator, Wyoming Office of the Consumer Advocate
• Elaine Hart, Principal, Moment Energy Insights LLC, GridLab Expert
• Siva Gunda, Commissioner, California Energy Commission
• Mark Holman, Managing Director, Powerex Corp.
• Paul Lau, CEO and General Manager, Sacramento Municipal Utility District
• Robert Olsen, Director of Supply & Trading & Fuels, Salt River Project

Thursday, June 24, 2021

12:30 pm – 2:30 pm:

Panel 3:  Solutions and Pathways to Addressing Shared Resource Adequacy Needs

Panelists will explore how existing, planned, and potential new approaches can be used to satisfy evolving and shared resource adequacy needs.  Panelists will present views on how resource adequacy planning entities and each Western region plan to address resource adequacy challenges, such as those arising from transmission constraints, weather/heat events, and generation retirements.  This panel will also discuss how existing resource adequacy processes could evolve to ensure continued resource adequacy, including potential changes to procurement, coordination, and the methods used to assess resource adequacy (such as improved or standardized metrics, targets, and capacity valuations).  Additionally, panelists will highlight regional initiatives that are being used to plan for and ensure adequate supply, including during transition periods to and from high net demand.  Stakeholder perspectives on opportunities to further harmonize resource adequacy approaches, including discussing how potential approaches might interact with existing state and utility planning processes and policies, will be explored. 

This panel may include a discussion of the following topics and questions:

1. How could existing resource adequacy processes be adapted to satisfy evolving resource adequacy needs?  Specifically, how could changes to procurement, coordination, and the methods used to assess resource adequacy (e.g., metrics, targets, and capacity valuations) be improved to ensure resource adequacy needs are met?
   • How might data sharing and transparency be improved to supplement accurate resource adequacy planning?  Are there any initiatives on this topic?  What elements of resource adequacy planning would benefit most from coordination and/or data sharing?
   • What steps can be taken to remedy double-counting of resources and improve clarity on available capacity?
2. What are ways to better incorporate input from stakeholders into resource adequacy processes (e.g., consumer advocates, state or local authorities, public engagement)?
3. During events that result in tight system conditions (weather-related or otherwise), load serving entities may compete for priority access to limited available resources.  What improvements to rate design and market rules should be implemented to streamline the process for the transfer and delivery of energy in real-time when system conditions are tight?  What role could states have in supporting such initiatives?  What role could the Commission consider playing to encourage such initiatives?
4. What regional or state initiatives are being used to plan for—and ensure—adequate supply, specifically during transition periods to and from high net demand?
5. Would having a broader region-wide resource adequacy sharing framework in the Western Interconnection mitigate the adverse impacts of extreme climate and weather events?  Would a region-wide resource adequacy sharing framework serve as a tool to manage and mitigate damages from potential loss of load?
6. What new frameworks to improve existing resource adequacy approaches are being considered?  How might existing state and utility planning processes and policies (e.g., Integrated Resource Plans) interact with new emerging approaches?  How would those rules interact with existing market mechanisms, such as the California Independent System Operator Corporation (CAISO) or Southwest Power Pool, Inc. (SPP) energy imbalance markets?
7. What role could the Commission consider playing to encourage the development of novel frameworks that improve resource adequacy planning and procurement?
8. To what degree might transmission expansion or transmission planning be relevant to supplementing resource adequacy planning?

Panelists:

• Michele Beck, Director, Utah Office of Consumer Services
• Tammy Cordova, Commissioner, Nevada Public Utilities Commission
• Sarah Edmonds, Director of Transmission and Market Services, Portland General Electric Company
• Fred Heutte, Senior Policy Associate, NW Energy Coalition
• Peter Griffes, Chief, Comprehensive Procurement Framework, Pacific Gas & Electric Company
• Anders Johnson, Electrical Engineer, Long Term Planning, Bonneville Power Administration
• Scott Miller, Executive Director, Western Power Trading Forum
• Kristine Raper, Commissioner, Idaho Public Utilities Commission and Chair, Western Interconnection Regional Advisory Board

• Steve Wright, General Manager, Chelan Public Utility District

2:30 pm – 2:45 pm:

Break

2:45 pm – 4:45 pm:

Panel 4:  Closing Roundtable Discussion:  Regional Coordination Within the Western Interconnection

The conference will conclude with a roundtable discussion highlighting the mutual interdependence in the Western Interconnection on electricity issues and discussing potential paths to improved regional coordination among entities to address Western needs.  Building on the earlier panel discussions, panelists will describe how Western electricity issues could be addressed through transmission planning, resource sharing, exports and imports of energy from a diverse set of regions.  This discussion will seek stakeholder perspectives on the potential benefits of increased coordination on these matters through participation in regionally coordinated energy markets, exploring not only existing structures (such as the Western Energy Imbalance Market administered by CAISO, or the Western Energy Imbalance Service market administered by SPP), but also potential RTO/ISO frameworks, or other novel approaches that might capture systemic or regional benefits.  During this discussion, panelists will consider the opportunities and challenges related to greater coordination in the Western Interconnection, such as market opportunities, economic efficiencies of electricity generation and delivery, operational/reliability improvements, and implications on governance and administration. 

This panel may include a discussion of the following topics and questions:

1. How could better regional coordination address resource adequacy needs in the West?
2. How could better regional coordination address other needs, or enable benefits in the West (e.g., information sharing, market opportunities, economic efficiencies, operational/reliability improvements)?
3. What are the key challenges that need to be considered with any regional coordination effort?  Please consider technical, administrative, and governance-related complexities.
4. What role could the Commission consider playing to encourage regional coordination efforts?
5. Please discuss the role of transmission in facilitating regional coordination.  What steps can be taken to improve transmission planning and development, as well as the use of the existing transmission system, in the West?
6. What benefits could accrue through a potential new or expanded RTO/ISO framework in the West?  Taking into consideration governance, stakeholder involvement, market design, and other elements of an RTO/ISO, what is likely necessary for an RTO/ISO framework to be successful in the West? 
7. Please discuss observed benefits from, or impacts of, the existing regional market archetypes in the West: CAISO’s Western Energy Imbalance Market and SPP’s Western Energy Imbalance Service.  How might these energy imbalance markets evolve in the future?  How can coordination on energy imbalance markets improve?
8. What alternative or novel coordination frameworks might be implemented in the western regions?  Are there ideas that balance the need for regional/state autonomy with coordination that addresses common issues?

Panelists:

• Jeff Ackermann, Senior Policy Advisor, Center for the New Energy Economy at Colorado State University

• Scott Bolton, Senior Vice President, Transmission Development, PacifiCorp
• John Hairston, Administrator and CEO, Bonneville Power Administration
• Tracey LeBeau, Interim Administrator and CEO, Western Area Power Administration
• Elliot Mainzer, President and CEO, California Independent System Operator Corporation
• Amanda Ormond, Director, Western Grid Group
• Ed Randolph, Deputy Executive Director for Energy and Climate Policy, California Public Utilities Commission
• Bruce Rew, Senior Vice President, Operations, Southwest Power Pool, Inc.
• Letha Tawney, Commissioner, Oregon Public Utility Commission
• Jordan White, Vice President of Strategic Engagement and Deputy General Counsel, Western Electricity Coordinating Council

4:45 pm – 5:00 pm:         

Closing Remarks