Western Resource Adequacy Program

Western Resource Adequacy Program Background

WRAP is the product of a proactive effort by the region, started in 2019, to address concerns driven by climate change, thermal plant retirements and additions of intermittent, non-dispatchable resources. The WRAP initiative will take advantage of and maximize regional diversity in resources and load, enhancing capacity reliability for customers across the program footprint. Development of the WRAP encompasses completion of information gathering (Phase 1) and conceptual and detailed design work (Phase 2). Phase 3 includes the non-binding forward showing program (Phase 3A), the binding forward showing program and the full binding operational program (Phase 3B). Non-binding program participation began in October 2021, which included non-binding forward showings for winter 2022-2023 and summer 2023 seasons, and continued program design and drafting work. Phase 3A participant commitments to join the binding program participation were made by Dec. 2022. FERC approval is required before the program can become fully binding. In Phase 3B, WPP will begin to operate under the governance and funding provisions set forth in the WRAP Tariff, while continuing to conduct non-binding forward showings through winter 2024–2025, along with an operational trial period beginning with summer 2023.  For more information, see the Western Resource Adequacy Program webpage hosted by the WPP.

BPA Decision Process 

Prior to joining WRAP, BPA conducted a two-phase decision process. In the summer of 2021, BPA explored with its stakeholders whether to continue its participation in Phase 3A of the WRAP. BPA held two public meetings that sought stakeholder and customer input in its decision-making process on whether to participate in the non-binding forward showing phase (Phase 3A) of the program. On Aug. 20, 2021, BPA issued a Draft Letter to the Region on its proposed decision and accepted comments on the letter through Sept. 3, 2021. After thorough review of comments, BPA issued its Final Letter to the Region on Sept. 29, 2021, with the agency’s final decision to continue participation in Phase 3A.

In November 2021, BPA initiated hosting a series of resource adequacy engagement workshops focused on:

• discussing program design updates and impacts to BPA and its customers;
• communicating outcomes from BPA’s participation in the non-binding forward showing program activities; and
• resolving open questions and key considerations in order for BPA to make a well-informed decision on participation in Phase 3B.

BPA managed a WRAP Public Considerations Tracking spreadsheet throughout its ongoing Phase 3A engagement. The tracking spreadsheet provided transparency of BPA’s intended process, and timing for resolving open questions and key considerations as submitted by public commenters throughout BPA’s Resource Adequacy engagement processes. 

In Sept. 2022, following the resource adequacy engagement workshops, BPA kicked-off the formal decision process on its potential decision to participate in the binding program (Phase 3B). BPA hosted three public meetings seeking stakeholder and customer input in its decision-making process on whether to join the binding program, Phase 3B. On Oct. 19, 2022, BPA issued its proposed decision in a Draft Closeout Letter. The Final Closeout Letter concludes the public process conducted for BPA’s participation in the binding program (Phase 3B). BPA will continue to engage with customers and stakeholders as BPA participates in the binding program.

In Feb. 2023, BPA began providing regular updates on WRAP at the Quarterly Business Review Technical Workshops.

For questions regarding BPA’s participation in WRAP, please email WRAP_BPA@bpa.gov. 

Resources

• Western Resource Adequacy Program (WRAP)
• BPA Resource Planning 
• Hydropower 101
• BPA Quarterly Business Review