A New Mexico Public Regulation Commission workshop March 13 aimed to restore trust between the commission and El Paso Electric after the utility’s surprise announcement in January that it planned to join SPP’s Markets+.

The PRC held a series of workshops last year to explore issues related to two competing day-ahead markets in the West: Markets+ and CAISO’s Extended Day-Ahead Market.

During a workshop in August, El Paso Electric representatives said they hoped to conduct further studies comparing benefits of the two markets. They indicated that they’d present results of the new studies to the commission before choosing a market, a decision they expected to make in the third quarter of 2025, according to Commissioner Gabriel Aguilera.

When EPE announced its choice of Markets+ on Jan. 24, many were taken by surprise — including the New Mexico commissioners. (See El Paso Electric to Join SPP’s Markets+ in 2028.)

“The last thing I wanted was a surprise filing or announcement by a utility that they’re joining ‘X’ market,” said Aguilera, who has been leading the workshops. “EPE’s announcement surprised me. And it surprised a lot of people.”

“It was not transparent,” Aguilera added. “And I really hope to bring transparency back into this by having this workshop.”

Commission Chair Pat O’Connell said the workshop was important to “reset” the relationship between the PRC and El Paso Electric.

“When you say you’re going to do something, you’ve created the expectation. And then when you don’t do it, it breaks the trust,” O’Connell said.

Emmanuel Villalobos, EPE’s director for market development and resource strategy, said the utility had “misrepresented ourselves” in saying that the new study results would be shared before making a market announcement.

“We are deeply sorry for that miscommunication,” Villalobos said.

In addition to hosting the series of workshops last year, the PRC issued a set of “guiding principles” in late October intended to help utilities make a day-ahead market choice. (See NM PRC Issues ‘Guiding Principles’ for Electricity Market Participation.)

Brattle Group Study

During the workshop, Brattle Group principal John Tsoukalis presented results of a recent study completed for El Paso Electric, which looked at benefits of day-ahead market participation if EPE joined Markets+ and Public Service Company of New Mexico (PNM) joined EDAM.

PNM announced its choice of EDAM in November. (See PNM Picks CAISO’s EDAM.)

The new study was a follow-up to Brattle’s previous study that projected annual benefits for EPE of $19.1 million a year if both New Mexico utilities joined EDAM, versus $9.1 million if they joined Markets+. (See Brattle New Mexico Study Shows EDAM Benefits Outpacing Markets+.)

The updated study projected annual benefits of $6.6 million for EPE if the utility joins Markets+ but PNM goes with EDAM.

But Brattle’s figures changed when the consultant incorporated estimates of the value of the Eddy County tie, a 345-kV transmission line that connects EPE with the Eastern Interconnection. With the Eddy County tie value factored in, EPE’s annual benefits would be $19.3 million if both New Mexico utilities join EDAM, $20.1 million if they join Markets+, and $18.8 million if EPE goes with Markets+ while PNM joins EDAM, Brattle projected.

With the new study showing a smaller difference in monetary benefits among the different market scenarios, EPE weighed other factors in its market decision, including governance, reliability and resource adequacy. And Markets+ seemed to be a better fit.

“Market participation must be viewed holistically, considering both financial and operational realities,” EPE said in a presentation.