Resource Adequacy FAQs - Revised March 2020

Feb. 28, 2020, 12:18 p.m.
Last modified Feb. 28, 2020, 12:25 p.m.

How was the Steering Committee formed and who is on it?

The Steering Committee consists of senior management or executive representatives from NWPP member organizations that fund and participate in the resource adequacy (RA) program design effort and are interested in serving on the committee.

Are you accepting new Steering Committee members?

Opportunities for additional steering committee members will be re-evaulated in a future phase of the program.

When will special workgroups get formed? How can I request a specific special workgroup?

A special workgroup for LSEs has been formed.  Currently that work group is meeting with PPC Members at their pre-scheduled Executive Committee meetings.  The Steering Committee will continue to establish additional work groups as necessary and we welcome input from stakeholders in formation of other workgroups.

How was the stakeholder advisory committee formed? Are you open to adding new members?

Key industry sectors were identified, along with states of NWPP member utilities funding the RA program development.  We solicited recommendations for representatives and also reached out to individuals in given sectors/states. All states (through public utility commissions or energy offices) were given an opportunity to participate on the advisory committee. NWPP member states will retain the ability to participate on the advisory committee if they so choose. If there are concerns with the composition of the committee we will consider those and possible additions that may be necessary.

Will you be hiring outside experts at any point during the project?

Yes. We have hired Sapere Consulting for project management services and have retained legal expertise as well. In addition, we have retained E3 to assist in modeling efforts. In later stages of program development, additional experts may be retained.

How will this program impact LSEs in an RA program participants’ BAA?

The point of compliance for the resource adequacy program is a component of program design currently under consideration by the Steering Committee. A straw proposal on program design will be shared with the advisory committee at a future meeting and we will solicit advisory committee feedback on this.

Can you join the RA program if you’re not a Power Pool member? If not, why not?

For purposes of program development, membership on the Steering Committee has been limited to NWPP members to aid in financial and governance logistics. However, the aim of the Steering Committee is to design the program so that it may be expanded in the future. Membership in the future RA program (being designed) is being considered as part of our legal/regulatory structure discussion and is unknown at this time.

How is the Steering Committee exploring governance?

The Steering Committee retained legal experts to advise us on options available for the program governance, which may depend on the ultimate legal and regulatory framework. We anticipate having a proposal developed before the next phase of the program kicks off (Phase 2B, Detailed Program Design).

Will there be a formal stakeholder process with written comments taken, etc.?

The Steering Committee is currently exploring the legal/regulatory framework for the RA program. Based on that review, a formal stakeholder process may be advisable or required.

Are you exploring an energy RA program as well as a capacity RA program?

There are different ways to measure resource adequacy; capacity, energy and flexibility. Every formal resource adequacy program in North America is capacity-based. The Northwest is unique due to the predominance of energy-limited resources such as hydro and renewables. At this time, we are working toward developing a capacity resource adequacy program as a first step. Once this capacity program is implemented, we may explore other solutions that could build upon this program, such as an energy adequacy standard. We recognize that capacity and energy issues are interrelated, especially in the Northwest, and are doing our best to consider both what is feasible to implement and what is needed most for reliability.