April 1, 2024

Southwest Power Pool Completes and Files Markets+ Tariff with Collaboration and Support from Western Stakeholders

LITTLE ROCK, ARK. — Southwest Power Pool (SPP) reached a significant milestone in the development of its western day-ahead electricity market on Friday, March 29 when it filed its Markets+ tariff with the Federal Energy Regulatory Commission (FERC). The achievement underscores SPP’s leadership in market development and dedication to fostering fair and equitable partnerships that prioritize the interests of all parties involved.

SPP President and CEO Barbara Sugg expressed enthusiasm about this step in the Markets+ effort, stating, “SPP’s mission and success depends on working together effectively, and it’s been a privilege to work alongside our new western stakeholders to craft market policy that will create a brighter, more resilient energy future in the West. We celebrate the high-quality tariff we’ve created together, and we look forward to bringing Markets+ to life.”

Work on the Markets+ tariff began less than a year ago, when 38 entities from states across the West executed agreements to participate in the development process. With guidance and support from SPP and oversight from an independent panel of directors, the entities organized into committees and working groups that drafted terms and conditions that will govern the administration of the western region-wide day-ahead electricity market.

“While SPP has proven our expertise in designing and administering fair, equitable and beneficial markets, it’s been critical to us that the development of Markets+ be driven by western stakeholders,” said Antoine Lucas, SPP Vice President of Markets and sponsor of the Markets+ program. “We’re excited to see this approach has yielded a market design that will enhance electric reliability and affordability, enable participants to meet clean energy mandates and goals in a cost-effective manner and do it all in a way that ensures equity for every market participant.”

Western stakeholders who have participated in writing and approval of the Markets+ tariff applauded the collaborative approach and outcomes of the development process.

“The filing of the Markets+ tariff is a significant accomplishment for SPP and western stakeholders. The Markets+ effort has resulted in a market truly for the West, designed by the West, and it benefits from the collective knowledge and expertise of SPP staff and a very broad coalition of western stakeholders,” said Scott Simms, CEO and Executive Director of the Public Power Council located in Portland, Oregon.

“Bonneville Power Administration appreciates the collaborative and transparent stakeholder-driven governance model used by SPP to develop the Markets+ tariff language,” said Rachel Dibble, BPA’s vice president of bulk marketing. “The result is an end product that recognizes the needs and perspectives of all participants and accounts for BPA’s legal obligations.”

“Chelan celebrates the Markets + tariff filing,” said Chelan County PUD General Manager Kirk Hudson. “We view Markets+ as a promising framework for ensuring Chelan can continue to provide its customers with affordable and reliable power, while supporting decarbonization of the electric grid. We thank our partner utilities and each and every stakeholder who contributed through the Markets+ consensus-based governance process. We also thank SPP for guiding us towards this milestone.”

“NIPPC applauds the commitment and hard work of the Markets+ participants, stakeholders, and SPP’s staff on reaching this critical milestone for improving wholesale energy markets in the West,” said Northwest & Intermountain Power Producers Coalition Executive Director Spencer Gray.

“The Interwest Energy Alliance is pleased to see market options developing in the West, and to see the Markets+ tariff moving into the next phase reflects strong support and collaboration among a diverse set of utilities and stakeholders, said Rikki Seguin, Executive Director.

“The filing of the Markets+ tariff with FERC is an important milestone in the member-driven development of a day-ahead market in the West, and its development is a testament to the durable governance structure that was established for Markets+,” said Josh Robertson, Salt River Project’s (SRP) Director of Energy Market Strategy. “SRP was encouraged that a broad array of utility, trade associates and stakeholder representatives were able to work through numerous complicated and detailed issues to arrive at a market structure that has the potential to benefit SRP’s customers and the West.”

"Energy needs for Arizona Public Service (APS) customers will increase dramatically over the next several years," said Brian Cole, APS Vice President of Resource Management. “As a result, APS is thoughtfully exploring market options to ensure we continue providing reliable, top-quality service. SPP’s Markets+ provides a promising framework to serve the West with dependable, diverse and cost-competitive power supplies."

"This is a significant step toward expanding wholesale market options that can provide cost savings for our customers while supporting reliable service and greater use of cleaner energy resources," said Erik Bakken, Senior Vice President, Energy Resources, and Chief Sustainability Officer for Tucson Electric Power.

While awaiting FERC’s review of the draft Markets+ tariff, SPP will continue to work with stakeholders to define detailed protocols for the market’s administration, work that is already underway. Markets+ is expected to go live in early 2027.

For more information about SPP’s Markets+ program, visit www.spp.org/marketsplus

Meghan Sever, (501)482-2393, msever@spp.org