A coalition of environmental groups recently filed a petition for review in the Ninth Circuit Court of Appeals against the Bonneville Power Administration (BPA) regarding its decision to join the Southwest Power Pool’s Markets+ day-ahead market.
The NW Energy Coalition, Idaho Conservation League, Montana Environmental Information Center, Oregon Citizens' Utility Board, and Sierra Club (with Earthjustice serving as counsel) allege that BPA disregarded laws requiring it to prioritize lower prices and expand renewable energy when it opted to join Markets+ rather than the California Independent System Operator’s (CAISO) Extended Day Ahead Market (EDAM).
The suit claims that BPA’s decision to join Markets+ does not comply with the requirements of the Pacific Northwest Electric Power Planning and Conservation Act, the National Environmental Policy Act, or the Administrative Procedure Act.
The environmental groups reason that CAISO’s EDAM is a more formalized mechanism for matching electricity demand with supply.
They say it can create opportunities for greater efficiency and lower costs for market participants, and a larger day-ahead market with a greater diversity of generating resources will result in improved reliability for customers. They argue that the increased efficiency in power generation and transmission afforded by a larger and more diversified market reduces costs and the need to build additional resources.
On May 9, BPA announced its decision to join Markets+, saying it will provide economic benefits for BPA customers, allow for market design modifications through an independent stakeholder process, and has been created from the ground up with design features that limit downside financial exposure.
