Several parties, including two public power utilities, have executed funding agreements for the development of Markets+, Southwest Power Pool’s western energy market.
The parties signing funding agreements are Arizona Public Service, Bonneville Power Administration, Chelan County Public Utility District, NV Energy, Powerex Corp., Puget Sound Energy, Salt River Project, and Tucson Electric Power.
The next phase of Markets+ development will begin immediately, ahead of the planned April 1 start date, SPP said.
SPP also executed stakeholder agreements with participants that do not serve load or own generation but, while not contributing to funding Markets+ in phase one, will participate in the development of the Markets+ stakeholder process.
Together, the participating entities operate a diverse mix of generating resources and serve more than 250,000 gigawatt-hours per year in the Western Interconnection, representing more than 40 gigawatts of peak demand.
During the initial development phase, stakeholders and SPP staff will collaborate to develop the market protocols, tariff and governing documents for Markets+, as well as major components of Markets+ governance structure, including the Markets+ Participants Executive Committee, Market Design Working Group, Transmission Working Group, and Seams Working Group.
For more than a year, SPP has worked with western stakeholders to develop a proposed day-ahead and real-time market that meets the needs of western utilities to centralize unit commitment and dispatch, bring additional savings to customers, and pave the way for the reliable integration of a rapidly growing fleet of renewable generation.
“The Bonneville Power Administration’s contribution to phase one funding of SPP Markets+ is an investment that we expect to provide multiple benefits to BPA and its customers,” John Hairston, BPA Administrator and CEO, said in a statement. “Markets such as this are the future of operations in the West, and this ensures BPA and its customers will keep pace and help shape these important initiatives.”
BPA announced its commitment to funding phase one development of Markets+ Feb. 24.
SPP released the proposal for its western energy market Nov. 30, 2022. Additional parties interested in committing to funding further market development must sign a Markets+ Market Participant Phase One Funding Agreement by April 1, 2023.