Electric Co-op Today

Bonneville Power Administration, the Western Area Power Administration, and several utilities are now using an electronic trading platform called webExchange as a high-tech way to find the best market prices at a glance.

A new trading program helps to account for the intermittent production of wind energy in the Northwest. (Photo By: iStockphoto)

The idea behind the system is simple—traders need to be more nimble than ever, scheduling power in short, 30-minute increments, as more intermittent wind power is integrated into the Northwest grid.

Officials call it one of the most important administrative developments in the region’s electricity market in years.

“Utilities saw a need for this tool as wind generation took off,” said Brenda Anderson, webExchange project manager for BPA, which markets wholesale power to co-ops in the Northwest. “Wind is more variable than traditional types of generation, so we need to be able to react faster.”

The initiative has been developed during the last few years by Northern Tier Transmission Group, ColumbiaGrid and WestConnect, three regional transmission groups.

In the past, most traders used the phone for deals, and transmission was scheduled in hourly increments. If, though, wind energy suddenly peaked during the hour, utilities didn’t have any way of selling that excess.

In addition, BPA said webExchange will find the cheapest available path for power that utilities might need to transfer. While the program won’t solve BPA’s problem of balancing wind energy at times of high hydro production, it will provide some needed flexibility.

“It’s going to take some getting used to, but it could provide some very important benefits,” Anderson said.

The webExchange software is available by subscription. And officials hope regulators will give the OK for other utilities to join the intra-hour scheduling program.

Tags: Bonneville Power Administration, Business and Finance, Power Rates, Wind Energy