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SPP’s bid for western states Markets+ plan gains steam

The grid operator added a handful of prominent names to its list of entities interested in a proposed day-ahead and real-time market scheme.
SPP’s bid for western states Markets+ plan gains steam

The Southwest Power Pool (SPP) said that six more groups have expressed interest in participating in its Markets+ development effort. 

Avista Corp., Chelan County Public Utility District, Grant County Public Utility District, Powerex Corp., Puget Sound Energy and Tacoma Power joined the Bonneville Power Administration (BPA) in expressing their intent to work with SPP to develop a western market. All of these companies except Powerex own and operate hydroelectric projects.

Since last December, SPP has worked with stakeholders around the region to learn what they’d like to see out of its proposed day-ahead and real-time market. Based on that input, SPP said it now plans to develop the Markets+ draft service offering. The offering will explain how the proposed service will address governance structure, market design and transmission availability.

This article was originally published on sister website POWERGRID International.

In August, BPA, a federal agency serving nearly 3 million people in the Pacific Northwest, was the first western utility to commit to funding further development of SPP’s Markets+.

“SPP is encouraged by this group of entities’ commitment to further the development of our Markets+ service,” said SPP President and Chief Executive Officer Barbara Sugg. 

Altogether, the seven entities have extensive transmission capability, a large fleet of flexible hydro resources, and a peak load over 30,000 MW.

As proposed, Markets+ would centralize day-ahead and real-time unit commitment and dispatch, provide “hurdle-free” transmission service and enable integration of a rapidly growing fleet of renewable generation. 

“This is a logical next step in our exploration of day-ahead markets,” said John Hairston, BPA administrator. He said that by participating in SPP’s process, BPA can help shape the market design in a way that “ensures it could work with our statutory obligations” and support customers’ needs and interests.

SPP staff met with western stakeholders in early August to review work done on the service offering and discuss next steps. The draft service offering is expected to be distributed September 30, followed by a public comment period, with the final service offering distributed November 18. 

BPA said it is engaged in the development of two day-ahead energy market initiatives in the West: SPP’s Markets+ day-ahead and real-time market initiative and the California Independent System Operator’s Extended Day-Ahead Market (EDAM) initiative. Both proposals are on track to reach critical milestones later this year. 

The federal power entity said that while the Markets+ and EDAM initiatives are in early stages of development, it supports independent governance to “ensure neutrality” in market development, implementation and operation.

BPA said it was “encouraged” by the representative nature of SPP’s existing governing structure and its participant-driven process. It also expressed support for the Markets+ governance proposal that includes an independent, West-wide panel.

BPA said it expected to fund its share of the next development phase late this year. It also said it planned to take part in drafting tariff and market protocols starting in 2023. 

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.