The Southwest Power Pool on April 12 received a letter from 26 western entities including public power utilities indicating their support for continued development of SPP’s Markets+, a full day-ahead and real-time market.
The letter was signed by organizations from the Pacific Northwest, Desert Southwest and Mountain West regions, which together represent approximately 57 gigawatts of peak demand across ten states and one province in the Western Interconnection.
Markets+ is a day-ahead and real-time market designed to centralize unit commitment and pave the way for reliable integration of renewable generation.
SPP filed the Markets+ tariff with the Federal Regulatory Energy Commission March 29. SPP is collaborating with stakeholders on detailed protocols for the market’s administration. Markets+ is expected to launch in early 2027.
“As a full day-ahead and real-time market, Markets+ would fundamentally reshape how energy is bought and sold in the West. For this reason, we believe it is vitally important that Markets+ have both an initial market design, and a market development process, that durably delivers fair and equitable results for all participants,” the letter said.
“We are confident that Markets+ has developed the independent, inclusive, and robust governance structure necessary to achieve this important objective,” the letter said.
“As most of us were Phase 1 funding participants of Markets+, we have seen first-hand the benefits and importance of the Markets+ governance structure. Critically, Markets+ has had independent governance from day one, including the establishment of an interim Markets+ Independent Panel. We have also seen first-hand the benefits of inclusive, stakeholder-driven decision making, with SPP staff providing technical input and support. We believe that the Markets+ framework would provide a level playing field for participants at the outset. We are also confident in SPP’s experience and track record for negotiating efficient, reliable, and equitable seams agreements,” the letter said.
While the Markets+ stakeholders are currently focused on the development of a day-ahead and real-time market, “we also acknowledge that the Markets+ independent, inclusive, and robust governance structure potentially provides a clear path towards full RTO participation including regional transmission planning. This is beneficial for those of us that may become interested in RTO participation in the future. At the same time, Markets+ provides a durable market regardless of RTO development,” the Western entities went on to say.
As contemplated in the recently filed Market+ Tariff, Markets+ will require that all Markets+ participants be members of a common resource adequacy program, the Western Resource Adequacy Program.
“This requirement would help ensure that there are adequate resources to reliably serve load throughout the footprint, and that such resources are installed and/or secured well ahead of market operations,” the Western entities said.
“It would also ensure that all market participants are equitably contributing to the reliability of the market footprint, and that no participants are systemically leaning on others. Markets+ may also enhance WRAP’s ability to deliver savings in the form of reduced Planning Reserve Margins by unlocking additional transmission transfer capability during critical hours through its flow-based approach, which is an additional economic benefit beyond production cost savings.”
The WRAP requirement in Markets+ “ensures that future enhancements to the WRAP could benefit the entire Markets + footprint, while avoiding the challenges that might exist if some participants were in different resource adequacy programs or none at all,” the Western entities said.
Public power utilities signing on to the letter were:
- Benton PUD
- Bonneville Power Administration
- Chelan County PUD
- Clatskanie PUD
- Douglas PUD
- Franklin PUD ‘
- Grant County PUD
- Idaho Falls Power
- Klickitat PUD
- Pacific County PUD
- Salt River Project
- Snohomish PUD
