NWEC Statement on BPA’s Day-Ahead Market Policy Final Decision

NWEC is disappointed that the Bonneville Power Administration (BPA) is choosing to join Markets+, a project developed by the Arkansas based Southwest Power Pool (SPP) and with a more limited portfolio of clean energy resources.  

NWEC agrees with BPA that joining a day-ahead energy market is the correct strategy to achieve our shared goals of reliable, affordable, and clean energy for the entire Northwest, however we believe BPA’s decision to participate in Markets+ will limit the economic and environmental benefits to the region. 

BPA’s modeling, as well as other independent analyses, shows that the Extended Day-Ahead Market (EDAM, operated by the California Independent System Operator) is expected to produce more benefits for customers and the entire Northwest because of the depth and breadth of this west-wide option. BPA acknowledges that the size of the market footprint is the biggest driver of net benefits. Yet BPA has chosen Markets+, a smaller market footprint. When BPA joins Markets+, it will decrease net benefits to customers by $108 million each year. If BPA joins EDAM, it will increase net benefits to customers by $57 million each year.

BPA’s decision to pursue a market with less economic benefits for customers and less direct interconnection with other utilities across the West will reduce the potential for all electricity users in the region to benefit from a unified day-ahead market. This decision is not in the best interest of the region.

For decades, all electricity users in the Northwest have paid BPA for providing power and transmission services to the region. We have relied upon BPA to manage these public resources for our common benefit and according to its legal obligations to consumers, tribes, wildlife, and nature. We are concerned that BPA is not being accountable to all its regional customers and its obligations to manage public assets for broad public benefits.

NWEC will continue to engage all interested parties to address the issues BPA raises regarding EDAM so that we all can get back on track towards a single, west-wide day-ahead energy market controlled by western interests for our common benefit.

For more information, please contact Ben Otto at ben@nwenergy.org or Fred Heutte at fred@nwenergy.org.