Southwest Power Pool Reveals ‘Market+’ Service for Western Energy Market

The Southwest Power Pool Inc. (SPP), the grid operator for 17 states in the central and western U.S., on Aug. 16, 2022, announced that its “Market+” service offering designed to provide hurdle-free transmission service and facilitate reliable integration of fast-growing renewable resources, has gained the attention of customers in the Western Interconnection. The service, which aims to centralize day-ahead and real-time unit commitments, is all set to be announced in November 2022. The Bonneville Power Administration, a federal agency that serves approximately 3 million people in the Pacific Northwest, is the first to commit to fund further expansion of the service. Bonneville’s participation is expected to help shape the governance structure, market design, and transmission availability that would meet statutory obligations and fulfil customers’ needs and interests.

Features of the Market Plus Services

• Robust and comprehensive governance model that represents the varied interests of all markets plus stakeholders.
• Market structure designed to meet the needs of western utilities with regard to renewable integration, greenhouse gas accounting, pricing mechanism, energy procurement, and reliability.
• Compatibility with the region’s resource adequacy program to prioritize reliability ahead of exports.
• Facilitates maximum transmission benefits while removing hurdle rates in the dispatch solution; optimizes unit commitment across the market.
• Improves trade outcomes with external regions through effective market solutions.

Since 2019, Southwest Power Pool has been partnering with western stakeholders and has been working to create tailor-made services in accordance with their individual as well as collective needs. Currently, the grid operator provides energy services to utilities in almost every state in the Western Interconnection with increased reliability and coordination. During the development of the Market+ service model, SPP has received encouragement from major utilities like the Bonneville Power Administration, state commissions, as well as public interest groups who are enthusiastic to see the services become a reality.

On August 9, 2022, SPP staff reviewed the work done related to the market plus services offerings and discussed the outstanding task elements to be completed.

The draft copy of market plus service offerings is due by September 30. Final service offerings are due by November 18. Commitment to fund market development from stakeholders is due in early 2023.