The Federal Energy Regulatory Commission (FERC) has recently given a conditional nod to Markets+, a new trading platform from the Southwest Power Pool. This exciting development is aimed at boosting real-time and day-ahead energy trading in the West, set to launch in 2027.
At a recent meeting, FERC Chairman Willie Phillips emphasized the frequent economic advantages that markets can bring to consumers. He noted that market operations also enhance the reliability of energy supply, particularly during high-demand periods.
FERC Commissioner Lindsay See remarked on the significance of this decision for enhancing energy reliability and affordability across the Western regions. Fellow Commissioner Judy Chang echoed this sentiment, highlighting the importance of market development in optimizing the use of energy resources and infrastructure for the benefit of consumers.
While the commission approved Markets+, it chose not to address how it will intersect with other existing markets in the West. The commission acknowledged that collaboration between these markets will be essential, particularly regarding data sharing and congestion management.
Discussions surrounding potential issues, like transmission allocations and rules against market power abuse, will continue as market participants iron out details in future filings. Chang underscored the need for clear guidelines regarding what transmission capacities will be available.
Commissioners Mark Christie and David Rosner advocated for the establishment of a dedicated organization for state utility regulators. They believe that having their own personnel will bolster state engagement in energy market matters, which have become increasingly complex.
FERC’s endorsement of Markets+ signifies a vital step forward for market evolution in the Western United States. Utilities now face the choice of participating in either Markets+ or the Extended Day-Ahead Market, which is set to be launched by the California Independent System Operator in 2026.
The Bonneville Power Administration plans to announce its market choice in May, and it has shown preference for joining Markets+, although there are discussions about the Extended Day-Ahead Market as well.
Utilities like Arizona Public Service and Xcel Energy’s Public Service Company of Colorado are leaning towards joining Markets+, while PacifiCorp aims to join the Extended Day-Ahead Market next year.
Amid these discussions, the energy landscape continues to evolve, with FERC’s approval representing a promising advance for energy trading and reliability in the West.