SPP confirms timing of Markets+ implementation milestones; Powerex commits to Markets+ participation and funding
LITTLE ROCK, ARK. — Southwest Power Pool (SPP) announces that it will implement major components of the governance structure of its planned Markets+ service in 2023 and will explore launching a transitional component of Markets+ in 2024: A transitional real-time balancing market similar to its Western Energy Imbalance Service Market (WEIS).
By establishing its Markets+ governance framework in 2023, SPP will ensure stakeholders have a formal structure that enables robust input and provides independent oversight of the market’s development and implementation. This includes creation of the Markets+ Seams Working group to facilitate the optimization of transfers between Markets+ participants, the California Independent System Operator (CAISO) and other entities in the west.
SPP will work with stakeholders to explore launching a transitional Markets+ real-time service offering, under what will be the Markets+ foundational tariff, with a targeted go-live date of June 2024. The day-ahead portion of Markets+ will be developed simultaneously and launch as soon as possible
“Standing up the Markets+ governance framework as soon as possible lets stakeholders collaborate to build a strong foundation for a market that meets the needs of the West,” said SPP President and CEO Barbara Sugg. “Creating a transitional Markets+ real-time market gives participants the opportunity to realize early benefits and value while Markets+ continues to develop.”
On Nov. 4, SPP received a letter from Markets+ stakeholder Powerex Corp. indicating their commitment to fully participate in funding the development of Markets+ and join Markets+ at inception. In their letter, Powerex Corp. specified the market design elements that provide the greatest economic, environmental and reliability benefits are:
- An inclusive and independent governance framework supported by a neutral market operator and independent board of directors.
- Greenhouse gas (GHG) tracking that accurately applies GHG emissions costs to jurisdictions with GHG pricing programs in a manner that meets environmental policy.
- A common resource adequacy requirement that will protect reliability and leverage the Western Power Pool’s existing Western Resource Adequacy Program (WRAP).
- Maximizing transmission capability, minimizing impacts on transmission revenue and equitably allocating congestion revenue.
- Industry best practices in price formation to accurate reflect grid conditions, lowering retail rates for consumers.
“In a relatively short time frame, SPP has been able to bring diverse stakeholders together to make tremendous progress on numerous complex issues, many of which have been proven difficult to solve through other regional efforts,” said Powerex Corp. President and CEO Tom Bechard regarding their decision after analyzing competing alternatives for organized markets.
In August, Powerex Corp. was one of six Pacific Northwest entities that declared their intent to participate in the next phase of Markets+ development. SPP announced additional entities committed to funding further development of Markets+ in August and September.
About SPP: Southwest Power Pool, Inc. is a regional transmission organization: a not-for-profit corporation mandated by the Federal Energy Regulatory Commission to ensure reliable supplies of power, adequate transmission infrastructure and competitive wholesale electricity prices on behalf of its members. SPP manages the electric grid across 17 central and western U.S. states and provides energy services on a contract basis to customers in both the Eastern and Western Interconnections. The company’s headquarters are in Little Rock, Arkansas. Learn more at SPP.org.