Arizona Utilities Plan to Join Markets+ to Strengthen Grid Reliability and Resilience
Arizona utilities APS, SRP, TEP, and UniSource have announced plans to join Southwest Power Pool's Markets+, a day-ahead and real-time energy market expected to launch by 2027. The initiative is projected to generate nearly $100 million in savings above current market participation, which will be passed on to customers. The market will enhance grid reliability, support renewable resource integration, and help utilities respond to market price changes and regional weather events. Markets+ will provide participants access to diverse generation resources, including hydroelectric, wind, and nuclear power, while offering an independent governance structure for equitable representation.
Le utility dell'Arizona APS, SRP, TEP e UniSource hanno annunciato piani per unirsi a Markets+ del Southwest Power Pool, un mercato energetico che prevede operazioni un giorno prima e in tempo reale, che dovrebbe lanciarsi entro il 2027. Si stima che l'iniziativa genererà quasi 100 milioni di dollari in risparmi rispetto alla partecipazione attuale al mercato, che saranno trasferiti ai clienti. Il mercato migliorerà l'affidabilità della rete, supporterà l'integrazione delle fonti rinnovabili e aiuterà le utility a rispondere ai cambiamenti dei prezzi di mercato e agli eventi meteorologici regionali. Markets+ fornirà ai partecipanti accesso a diverse risorse di generazione, tra cui energia idroelettrica, eolica e nucleare, offrendo al contempo una struttura di governance indipendente per una rappresentanza equa.
Las utilidades de Arizona APS, SRP, TEP y UniSource han anunciado planes para unirse a Markets+ de Southwest Power Pool, un mercado de energía de operación anticipada y en tiempo real que se espera lanzar para 2027. Se proyecta que la iniciativa generará casi 100 millones de dólares en ahorros sobre la participación actual en el mercado, que se trasladarán a los clientes. El mercado mejorará la confiabilidad de la red, apoyará la integración de recursos renovables y ayudará a las utilidades a responder a los cambios en los precios del mercado y a los eventos climáticos regionales. Markets+ proporcionará a los participantes acceso a diversas fuentes de generación, incluidas la energía hidroeléctrica, eólica y nuclear, al tiempo que ofrecerá una estructura de gobernanza independiente para una representación equitativa.
애리조나의 유틸리티 APS, SRP, TEP 및 UniSource가 2027년까지 출시될 예정인 하루 앞서와 실시간 에너지 시장인 Southwest Power Pool의 Markets+에 합류할 계획을 발표했습니다. 이 이니셔티브는 현재 시장 참여 이상으로 거의 1억 달러의 절감을 창출할 것으로 예상되며, 이는 고객에게 전달될 것입니다. 이 시장은 전력망의 신뢰성을 높이고, 재생 가능 자원 통합을 지원하며, 유틸리티가 시장 가격 변화와 지역 날씨 사건에 대응하는 데 도움을 줄 것입니다. Markets+는 참가자에게 수력, 풍력 및 원자력 등 다양한 발전 자원에 대한 접근을 제공하며, 공정한 대표성을 위한 독립적인 거버넌스 구조를 제공합니다.
Les services publics de l'Arizona APS, SRP, TEP et UniSource ont annoncé des plans pour rejoindre Markets+ du Southwest Power Pool, un marché de l'énergie à un jour d'avance et en temps réel qui devrait être lancé d'ici 2027. Cette initiative devrait générer près de 100 millions de dollars d'économies par rapport à la participation actuelle au marché, qui seront transférées aux consommateurs. Le marché améliorera la fiabilité du réseau électrique, soutiendra l'intégration des ressources renouvelables et aidera les services publics à réagir aux variations de prix du marché et aux événements météorologiques régionaux. Markets+ permettra aux participants d'accéder à diverses ressources de production, notamment l'hydroélectrique, l'éolien et le nucléaire, tout en offrant une structure de gouvernance indépendante pour une représentation équitable.
Die Versorgungsunternehmen in Arizona APS, SRP, TEP und UniSource haben Pläne angekündigt, sich dem Markets+ des Southwest Power Pool anzuschließen, einem Markt für Energie, der am Tag zuvor und in Echtzeit arbeitet und voraussichtlich bis 2027 starten wird. Es wird prognostiziert, dass die Initiative nahezu 100 Millionen Dollar an Einsparungen über die aktuelle Marktteilnahme generieren wird, die an die Kunden weitergegeben werden. Der Markt wird die Zuverlässigkeit des Stromnetzes verbessern, die Integration erneuerbarer Ressourcen unterstützen und den Versorgungsunternehmen helfen, auf Preisänderungen am Markt und regionale Wetterereignisse zu reagieren. Markets+ wird den Teilnehmern Zugang zu verschiedenen Erzeugungsressourcen ermöglichen, einschließlich Wasserkraft, Wind- und Atomkraft, und bietet eine unabhängige Governance-Struktur für eine gerechte Vertretung.
- Expected to generate nearly $100 million in additional savings for customers
- Enhanced access to diverse power sources including hydroelectric, wind, and nuclear
- Improved grid reliability through expanded transmission pathways
- Better capability to manage energy supply during peak demand periods
- Increased efficiency in real-time and day-ahead energy trading
- Implementation not expected until 2027, indicating a lengthy transition period
- Significant operational changes required for market integration
Insights
The planned integration into SPP's Markets+ represents a significant strategic shift for Arizona's major utilities. The projected
The 2027 implementation timeline allows for proper infrastructure development and system integration. The day-ahead and real-time market structure will enable more sophisticated energy trading and resource optimization, particularly beneficial for managing renewable energy intermittency. The expanded transmission pathways and resource pooling will enhance grid reliability and provide better price optimization opportunities.
For PNW (Pinnacle West Capital , parent of APS), this strategic move should strengthen its competitive position and operational efficiency. The ability to better manage peak demands and access diverse generation sources could help stabilize costs and improve margins.
This market integration creates a robust framework for accelerating renewable energy adoption across the Western U.S. The expanded geographical footprint will help balance intermittent renewable generation through resource diversity and broader transmission access. With APS's current
The ability to trade excess solar generation during winter months and access wind and hydroelectric power from northern regions creates a more resilient and sustainable energy system. This market structure will be particularly valuable for managing Arizona's growing energy demands while maintaining grid stability with increasing renewable penetration.
Customers to benefit from more savings, greater resource diversity and expanded transmission pathways
Along with other western utilities, Markets+ is anticipated to help the
“Arizona is one of the fastest growing states in the country and we are thoughtfully planning for the future and evolving our operations to continue to provide top-tier service and reliability to our customers at an affordable cost,” said Brian Cole, APS Vice President of Resource Management. “Together with our neighboring utilities, APS plans to join Markets+ to efficiently deliver energy and bolster the resilience of our shared energy grid in
“SRP’s participation in SPP Markets+ is a key component of our plan to meet the growing energy needs of our customers reliably and affordably and will help us achieve our 2035 Sustainability Goals,” said Josh Robertson, SRP Director of Energy Market Strategy. “We look forward to working with utilities in the region to bring the cost and resilience benefits to our respective customers.”
“Tucson Electric Power and UniSource Energy Services are excited about the value that Markets+ can provide to our customers, including cost savings and greater access to clean energy and other resources that support affordable, reliable service,” said Erik Bakken, TEP Senior Vice President. “We look forward to strengthening an already collaborative, productive relationship with Southwest Power Pool, our reliability coordinator, in its new role as market operator.”
What is an energy market?
An energy market is an interconnected network of electricity providers that help meet the supply and demand of power across a specific geography and include transmission pathways for electricity to travel from one location to another. Through Markets+, APS, SRP, TEP and UniSource will have greater access to substantial cost-effective hydroelectric, wind and nuclear power to help meet their customers’ needs. When demand is lower, the
How will Markets+ benefit Arizonans and the region?
Over the past several years, APS, SRP, TEP and UniSource actively participated in workshops and planning meetings with other western utilities to equitably develop the new market’s design. Markets+ offers participants an independent governance structure that ensures the market meets the needs of customers now and into the future and provides each utility equitable representation and voice in the process. The design is intended to offer a variety of benefits to customers, including:
Increased Reliability
- Participation standards requiring utilities to maintain specific generation levels to sustain a reliable pool of available market resources.
- Improving regional energy flows to better serve customer needs on transmission lines from the Northwest through the Mountain West and down to the Southwest.
- Efficient market structure that allows energy providers greater flexibility in meeting customers’ short-term and long-term energy needs in real time and day-ahead markets. This allows utilities to plan long-term, the next day, hourly and down to even 5-minute intervals.
Greater Cost Savings
- Greater savings for customers from more efficient utilization of generation resources.
More Clean Energy
-
Expanded diversity of renewable and clean energy technologies – from solar power and battery energy storage to wind and hydropower – expected across a region from
Arizona toCanada . - Support for participating utilities’ clean energy goals by enabling better movement of clean energy from a shared pool of power plants and technologies.
- Leveraging Southwest Power Pool’s 20 years of experience as a regional transmission operator, which includes a recent, significant expansion of renewable resources.
For more information on Markets+, visit spp.org/marketsplus.
Arizona Public Service: APS serves about 1.4 million homes and businesses in 11 of Arizona’s 15 counties, and is a leader in delivering reliable, affordable and clean energy in the Southwest. The company is committed to serving customers with
Salt River Project: SRP is a community-based, not-for-profit public power utility and the largest provider of electricity in the greater
Tucson Electric Power and UniSource Energy Services: TEP serves more than 450,000 electric customers in
View source version on businesswire.com: https://www.businesswire.com/news/home/20241125569956/en/
Media Contacts:
APS: Michael Philipsen, michael.philipsen@aps.com, 480-647-7762
SRP: Jennifer Schuricht, jennifer.schuricht@srpnet.com, 480-625-5070
TEP and UniSource: Rhonda Bodfield, rhonda.bodfield@tep.com, 520-403-5096
Source: Arizona Public Service
FAQ
What is the expected cost savings from Arizona utilities joining Markets+?
When will Arizona utilities begin participating in Markets+?
What are the main benefits of Arizona utilities joining Markets+?
How will Markets+ improve grid reliability in Arizona?
