Western electric providers band together to explore regional market solutions
A group of electric providers in the western United States have formed the Western Markets Exploratory Group (WMEG) to evaluate regional market solutions to strengthen the grid and reduce emissions.
The group is exploring the potential for a staged approach to new market services. This includes day-ahead energy sales, transmission system expansion, and other power supply and grid solutions consistent with existing state regulations.
The group includes Xcel Energy-Colorado, Arizona Public Service, Black Hills Energy, Idaho Power, NV Energy, PacifiCorp, Platte River Power Authority, Portland General Electric, Puget Sound Energy, Salt River Project, Seattle City Light, and Tucson Electric Power. Discussions are focused on developing long-term solutions to improve market efficiencies in the West. They hope to identify market solutions that can help achieve carbon-reduction goals.
“We are excited to join with the other companies to explore creating new ways of sharing resources to better serve our customers with affordable and reliable power,” Alice Jackson, president of Xcel Energy-Colorado, said. “We believe that a Western energy market is key to transforming the electricity system throughout the West, integrating more renewables onto the system, while reducing costs and maintaining reliability.”
Many of the companies in the group are either already part of or are planning to join the California Independent System Operator’s Western Energy Imbalance Market. The Western Energy Imbalance Market is a wholesale energy market that enables participants in the western U.S. to buy and sell energy when needed. It has generated more than $1.4 billion in gross benefits since 2014.
WMEG’s discussions will not impact participation in or evaluation of those markets in the short-term.
“Today’s announcement represents the next step toward achieving Nevada’s vision for a clean energy economy,” Doug Cannon, NV Energy president and CEO, said. “By exploring opportunities to greater diversify and maximize Western energy resources, we will help bring cost savings, improved reliability and carbon reduction benefits to not only Nevada, but to the entire region.”
Stefan Bird, president and CEO of Pacific Power, said, “PacifiCorp has long believed that further connecting the West with new transmission, clean energy resources and market efficiencies will unlock greater savings, reliability and improved environmental outcomes for our customers across the six states we proudly serve.”
