Press release: Federal Energy Regulatory Commission approves the design of Markets+; BPA should recognize that Extended Day Ahead Market is the best choice for the region 

For Immediate Release 
Thursday, January 16, 2025

Seattle – On Thursday morning, January 16, 2025, the Federal Energy Regulatory Commission (FERC) approved the design of Markets+, one of two day-ahead markets being developed in the west. The FERC decision is just one procedural step as the Bonneville Power Administration and Northwest utilities continue to review the proposals and determine which market, if any, they should join. 

FERC has already approved the proposed Extended Day-Ahead Market (EDAM) as a companion to the Western Energy Imbalance Market which covers almost all of the Northwest and over 80% of the western grid. The primary issue remains: will Markets+ or WEIM/EDAM best enable reliable, affordable energy for Northwest electricity customers, accelerate our clean energy transition, and give each state and all interested parties a strong role in market governance.  

A thorough and balanced assessment is especially important for the Bonneville Power Administration, which is currently in a public review process on day-ahead market choice. All the economic analyses, including a detailed report sponsored by BPA itself as well as an independent study co-sponsored by NW Energy Coalition and others, shows that joining EDAM provides the greatest cost and reliability benefits, in the range of $100 million or more per year for BPA and its preference customer utilities, and even larger benefits to the Northwest as a whole.   

Furthering the case, in a December 13, 2024 letter to the BPA Administrator, Senators Cantwell and Murray of Washington and Senators Wyden and Merkley of Oregon observed,“[a]ny market choice must be driven by a strong business case—thus far, BPA has not been able to make this case for Markets+.”  

“The FERC tariff approval does not change the analysis that the other option, the Extended Day Ahead Market, is a better choice for the Northwest,” said Nancy Hirsh, executive director of NW Energy Coalition. “BPA has multiple obligations under federal law and serves all Northwest electricity consumers with its transmission system and federal power resources. BPA and all utilities should use this opportunity to assess the options and evaluate the best choice for our region to maintain affordable energy, increase reliability in the face of volatile weather, meet growing loads, and manage the clean energy transition.” 

BPA has suggested that the governance features of Markets+ outweigh the very large net economic benefits of EDAM. Meanwhile, however, the Pathways Initiative final proposal recommends that EDAM evolve to a fully independent western entity with open and transparent decision making balanced across utilities, independent power providers, customers, and states.

Ben Otto, NWEC’s representative in the Pathways process, said, “BPA must assess both developments, FERC’s decision and the evolving EDAM governance model to make the best decision for our region.” 

More information:
NW Energy Coalition: Background for FERC’s decision on SPP’s Markets+ Tariff

The NW Energy Coalition is an alliance of over 100 environmental, civic, and human service organizations, utilities, and businesses in Oregon, Washington, Idaho, Montana, and British Columbia, plus many individual members. NWEC has participated in all phases of western power market development over the last decade. 

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