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Board weighs EDAM participation for internal generators; staff urges caution pending cost study
Summary
The board discussed Extended Day-Ahead Market (EDAM) implications for municipal internal generators (MIGs), including a $10,000 PacifiCorp study, potential loss of grandfathered transmission status and an estimated $2,300/month scheduling fee; staff recommended deferring a final decision until experts visit Nov. 20.
Board members spent substantial time reviewing what EDAM participation would mean for Hurricane's municipal generators and finances.
Utility staff (S4) explained that to receive scheduling credit the city's internal generators must be incorporated into PacifiCorp's full network model, a process that would require a study deposit (staff cited about $10,000) and roughly an 18-month study period. Staff also said CAISO/EDAM participation would require a monthly scheduling coordinator fee (staff cited $2,300/month), possible metering and SCADA changes, and that opting into the full network model would remove Hurricane's grandfathered exemption from transmission charges.
Staff framed the tradeoffs: inclusion could yield scheduling credit toward EDAM's 120% day-ahead resource requirement but would also expose the city to transmission charges it currently avoids; staff noted the city's historical on-site generator use has already reduced the utility's effective load for EDAM calculations. Several board members said the system of running generators as peakers has produced predictable summer performance and that the current operational approach already lowers required scheduled resources. No motion was made; staff recommended sitting out the first EDAM year to observe market rules and have subject-matter experts from CAISO/PacifiCorp/UAMS answer detailed questions at a Nov. 20 meeting.
Next steps: staff to host Nov. 20 expert briefing; the board can re-open the question after clearer numeric estimates of study, metering and ongoing scheduling costs and the financial impact of losing grandfathered transmission status.
