PNM joins WPP's reliability planning and compliance program in western US

The Public Service Company of New Mexico has joined the first region-wide reliability planning and compliance program in the Western US, known as the Western Resources Adequacy Program.

Seattle City Light and Snohomish County Public Utility District also sent formal participation agreements to the Western Power Pool after previously stating their intent to join the WRAP, the WPP said in an April 7 statement. This made for a total of 22 entities committed to the WRAP. Of those, PNM is the only one that was not part of the program's earlier phases.

"One of the things that makes the WRAP so beneficial is the ability to share in the diversity of the entire Western region," WPP President and CEO Sarah Edmonds said in the statement. "Bringing in PNM adds to that diversity, in terms of geography, resource mix and seasonal loads."

PNM joins WRAP

New Mexico's largest electricity provider, PNM, joined the WRAP to bolster its preparations for times of critical need, the company said in an April 7 statement.

"We've addressed power reliability head-on by tackling the widespread resource adequacy problems felt across the western United States," PNM CEO Pat Vincent-Collawn said in the statement. "We continue to ensure our customer needs are met through innovative solutions to our power resources, participation in energy markets and strengthening our resource adequacy framework. We see WRAP as another tool to continue to enhance PNM's system reliability."

PNM is expected to participate in the WRAP's forward showing later this year ahead of the summer 2024 operational program, according to WPP. In the forward-showing component of the the WRAP, participants demonstrate they have secured their share of the region's energy needs. Meanwhile, in the operational component, in the winter and summer seasons utilities with a deficit can tap into the pool of shared resources if needed.

"As we globally experience more extreme weather conditions, capturing geographical diversities over a larger footprint is beneficial," PNM said. "Resources may be operating as expected in New Mexico, while resources in Oregon are impacted by an extreme weather event or vice versa. By committing to share available power resources during these situations, WRAP provides a method for the partnering utilities to more efficiently and effectively optimize the geographical and resource diversities across the West."

PNM will continue to evaluate other regional programs that aim to improve reliability, reduce costs to customers and support its transition to 100% emissions-free electricity, the company said.

WRAP background

The Federal Energy Regulatory Commission approved the tariff for the WRAP in February. Many participants had committed to the program in advance in late 2022, and others have now signed on under the approved tariff.

"Ultimately, the WRAP will help maintain reliable service using fewer overall resources, ensure adequate resources during extreme weather events, and help enable the transition to clean energy," according to the WPP.

The WRAP provides a more accurate, regional picture of resource needs and supply, according to WPP. It delivers a region-wide approach for assessing and addressing resource adequacy, taking advantage of operating efficiencies, diversity, and sharing of pooled resources. Utilities from the northwest, parts of the desert southwest, Canada and northern California are part of the WRAP's overall footprint.

WRAP participants include Arizona Public Service, Avista, Bonneville Power Administration, Calpine, Chelan County PUD, Clatskanie PUD, Eugene Water & Electric Board, Grant PUD, Idaho Power, Northwestern Energy, NVEnergy, PacifiCorp, Portland General Electric, Powerex, Puget Sound Energy, Public Service Company of New Mexico, Salt River Project, Seattle City Light, Shell Energy, Snohomish County Public Utility District, Tacoma Power and The Energy Authority.