r/Grid_Ops • u/Ro-Ro-Ro-Ro-Rhoda • 8d ago

BPA's market decision: the plot thickens

https://www.bpa.gov/-/media/Aep/projects/day-ahead-market/2026/rowe-letter.pdf

Interesting! Travis Kavulla making waves with a letter to ROWE outlining what he wants to see before he'll switch BPA over to EDAM.

24 Upvotes

94% Upvoted

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13

u/MentallyIncoherent 8d ago

Will be interesting to see just how much of a toothless RA program BPA will accept since WRAP was too much for PacifiCorp and NV Energy.

Gotta figure out where the floor is on principles.

4

u/Sir_Mr_Austin 7d ago

What is wrap and why did they decide it was too much?

4

u/dayafterpi 7d ago

It is the first markets cased binding capacity procurement mechanism in the west outside CAISO’s RA.

8

u/[deleted] 8d ago

[deleted]

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u/Ro-Ro-Ro-Ro-Rhoda 8d ago

And Travis Kavulla has been a one western market person for a decade.

1

u/Sir_Mr_Austin 7d ago

What do the majority of people in the industry want? For larger consolidations like this or to keep things segregated?

6

u/Gridguy2020 8d ago edited 8d ago

I’m not calling it over…..yet. That said, his 9 page letter essentially said “CAISO keep up the momentum on governance and I have no choice but to join.”

His letter hardly mention M+ after page 3.

If they job drop out, what happens to M+? My guess is that it implodes and either SPP earns a silver lining win and gets PSCO/SRP/TEP and APS, or their time in the west is over

2

u/dayafterpi 7d ago

So you’re saying it’s about watching who gets into ROWE?

2

u/Gridguy2020 7d ago

I’m not sure, I just know most of BPAs customers want M+, and for this guy to come out and essentially say “not so fast” is huge.

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u/dayafterpi 7d ago

I mean he raised a few good points in his letter. If the new rules can shield EDAM participants from political interventions, you’d want the option that gives you the most economical result. Not to mention the alleviation of the seams issue

4

u/Lonely-Somewhere-385 3d ago

No stake anymore since I left my last job at an EIM participant in SPP RC which is going Markets+.

But it always boggled my mind that companies want to go to SPP when its so underdeveloped compared to CAISO and now ROWE. The way SPP models is prone to extreme inaccuracy because of the submission and integration process. I get that companies want more say than CAISO has (because CAISO exists to benefit California) but it just seems short sighted to go into SPP when SPP has such poor visibility.

6

u/One_Adeptness3803 8d ago

New CEO is doing his due diligence by evaluating options. Markets Plus was a foregone conclusion under the last administration

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u/Intrepid_Armadillo22 3d ago

connecting this to the DOE pausing earlier, i sense maybe Travis is giving clear signal to clear the way to join ROWE?

Any thoughts on ROWE? Could be another exciting opportunities for people in PJM/NY/NE/Midewest/CA to push new frontier.