The Southwest Power Pool’s proposed Markets+ service reached a significant milestone Jan. 16 when it received approval of its tariff by the Federal Energy Regulatory Commission.
Markets+ is the regional, day-ahead energy market developed in collaboration between SPP and more than 30 western entities, anticipated to launch in 2027.
This milestone achievement allows participants to begin phase two of Markets+ development following the execution of phase-two funding commitments.
“FERC’s approval of the Markets+ tariff is an important achievement for SPP,” said SPP President and CEO Barbara Sugg. “It reiterates what we know to be true about Markets+ — it’s a superior market design that recognizes and values the needs of all participants.”
SPP completed and filed the Markets+ tariff with FERC March 29, 2024. FERC sent a letter July 31 requesting more information on specific tariff elements, to which SPP responded in September.
While awaiting the Commission’s approval of the market’s terms and conditions, SPP has continued to facilitate work among prospective market participants to craft detailed protocols that will define the service’s administration and operation.
The Markets+ tariff filing was a result of hundreds of hours of collaboration between SPP staff and the 38 western entities who signed phase one agreements and includes terms and conditions representative of the diverse perspectives of all stakeholders, SPP said.
Since the tariff filing in March, Markets+ participants have been defining detailed protocols for the market’s administration, which is currently underway.
The Bonneville Power Administration, a Northwest-based federal power marketing administration that delivers wholesale electricity to more than 140 customer utilities and provides transmission service to more than 300 transmission customers, announced they would fund their share of phase-two development while they continue to collaborate with customers to develop a policy direction toward a day-ahead market option in May 2025.
“BPA is pleased that the Federal Energy Regulatory Commission has approved SPP’s Markets+ tariff, which was crafted through a robust stakeholder process,” said Rachel Dibble, BPA Power Services Vice President of Bulk Marketing. “This guarantees BPA has two viable day-ahead markets to consider as we make our way toward a day-ahead market decision later this year.”
Four Arizona entities in the Desert Southwest announced their plans to join Markets+ in November 2024. Arizona Public Service (APS), Salt River Project (SRP), Tucson Electric Power (TEP) and UniSource Energy Services will join phase two development in 2025 and be part of the market’s launch in 2027.
“Salt River Project is pleased Markets+ has received FERC approval,” said Josh Robertson, SRP Director of Energy Market Strategy. “Looking forward, our participation in SPP Markets+ is a vital element of our plan to address the increasing energy demands of our customers in a reliable and affordable manner, while also supporting our ambitious 2035 Sustainability Goals.”
Mountain West entities are planning to participate in Markets+ phase two as well.
Phase two of Markets+ begins in early 2025 and includes the development of systems, testing and parallel operations. Markets+ is expected to go live in 2027.
For more information about Markets+, visit www.marketsplus.org.
