Markets+, the Southwest Power Pool’s western day-ahead and real-time market, reached a major milestone this week as it entered the second phase of development, backed by secured financing to cover the $150 million needed for full market implementation.
“Securing financing for phase two of Markets+ is a pivotal step forward,” said Carrie Simpson, SPP vice president of markets. “It allows SPP to continue developing a more efficient, transparent and reliable energy market for our western stakeholders and their customers.”
Procuring this funding, provided by Simmons Bank, “enables SPP to work closely with stakeholders to develop the critical systems, processes and operations required to conduct market trials and successfully launch and operate the market,” SPP said.
The Federal Energy Regulatory Commission approved the phase two funding agreement framework April 22, which details how implementation costs will be recovered over the market’s operational life.
Entities spanning the Desert Southwest, Pacific Northwest and Mountain West regions of the Western Interconnection have signed these agreements, "demonstrating broad regional commitment and collaboration," SPP said. Those entities include a number of public power utilities.
“With key regional partners on board, we’re ready to begin the next phase of development,” said Jim Gonzalez, SPP senior director of seams and western services. “We thank our stakeholders for their engagement and look forward to working with them to build the systems that will bring Markets+ to life.”
Markets+ stakeholders are currently in the process of signing additional phase two funding agreements, phase two participation agreements and phase two stakeholder agreements based on their entity’s respective sector and role in the market.
The signing of a phase two agreement allows stakeholders to participate in phase two of the market’s governance.
Parties interested in participating in Markets+ phase two governance are asked to submit requests to SPP’s Request Management System.
SPP filed the Markets+ Tariff on March 29, 2024, and FERC approved the tariff on January 16, 2025.
Markets+ is expected to go live in 2027.
