El Paso Electric says it will join SPP’s regional day-ahead Markets+ service offering in a “strategic move … tailored” to meet expected customer load growth and evolving needs.
In a Jan. 24 press release, the Texas utility said it made the decision following an “extensive” evaluation process and its participation in CAISO’s Western Energy Imbalance Market. It said SPP’s experience as an RTO and its “proven track record of expanding renewable energy resources” make it a trusted partner.
EPE plans to make the transition in 2028, a year after Markets+’s expected launch. The utility did not participate in the first phase of the market’s development and is the first new organization to join during Phase 2. It will sign the same Phase 2 funding agreement as current participants, SPP said.
The RTO’s staff and more than 30 Western entities are working on the market’s second phase of development following FERC’s approval of the tariff Jan. 16. (See SPP Markets+ Tariff Wins FERC Approval.)
SPP COO Antoine Lucas said he was excited to hear of EPE’s decision.
“We look forward to welcoming them as a market participant,” Lucas said in a statement.
“Markets+ will provide utilities across the region, including EPE, access to a diverse pool of energy resources, enabling a more efficient and reliable energy grid,” the company said in its release.
It said joining the market will result in increased reliability, cost savings and clean energy integration, supporting its commitment to sustainability and clean energy goals and maintaining affordability for customers.
EPE said its decision came after two years of collaboration and planning with stakeholders across the region.
A Brattle Group market study released last August estimated EPE would see projected benefits of $19.1 million a year in EDAM, compared with $9.1 million for Markets+. (See Brattle New Mexico Study Shows EDAM Benefits Outpacing Markets+.)
The utility sits outside ERCOT in the Western Interconnection and is receiving reliability coordinator functions from SPP’s Western RC Services. It serves about 460,000 customers in 10,000 square miles of Texas and New Mexico, including the major cities of El Paso and Las Cruces, N.M.
