Industry Groups Seek Greater Role in Alternative Western RA Program

RTO Insider

Consumer advocates and industry groups want more influence in the governance structure of the resource adequacy program being developed for participants in CAISO’s Extended Day-Ahead Market. A coalition of likely future non-CAISO members of EDAM hosted the second workshop on the program May 7. The session focused on the RA initiative’s proposed governance.

Commenting on the proposed structure, Eric Little, director of market design at the California Community Choice Association, said having the Department of Market Monitoring monitor the program “is an excellent idea.”

“Markets are fantastic right up until the point that they’re not,” Little said. “We’ve had a problem here in California where we had a year in which people paid over $100/kW-month to meet resource adequacy, which is an absolutely ridiculous amount of money to pay.”

“The California Public Utility Commission only has market power mitigation for certain resource adequacy in local constrained areas,” Little said. “It does not have it for the more system-wide, which is partially what led to the problems of $100/kW-month prices. I think having mitigation measures in place and having a monitor is an excellent idea and absolutely encourage you to do that.”

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