On November 4, 2024, the Western Energy Markets (WEM) Body of State Regulators (BOSR) submitted comments to the Western Energy Markets Governing Body on the Storage Bid Cost Recovery (BCR) and Default Energy Bid (DEB) Enhancements Initiative—Track 1 Final Proposal. The BOSR supports the proposal, which applies the modified real-time BCR formula to all intervals in the day. The BOSR posits that applying the formula to all intervals would reduce opportunities for strategic bidding and partially address the inefficiency and reliability concerns generated by the status quo. However, the BOSR strongly recommends that the California Independent System Operator (CAISO) commence a holistic review of BCR for storage resources as soon as possible so that BCR rules are developed that are appropriate to storage resources and fully address the efficiency and reliability concerns inadvertently generated by the status quo.
