Arizona Utilities Uniting for Grid Resilience: Markets+

Arizona's utilities are joining forces to bolster grid reliability and resilience. APS, SRP, TEP, and UniSource Energy Services recently announced plans to participate in the Southwest Power Pool's (SPP) Markets+ by 2027. This strategic move is expected to bring significant savings and enhanced energy supply during peak demand periods and regional weather events. Let's delve into the benefits and potential challenges of this initiative.

Markets+ is designed to improve regional energy flows and allow for more efficient utilization of generation resources. By joining this market, Arizona utilities will have access to diverse power sources, including hydroelectric, wind, and nuclear. This broader energy mix will help maintain a balanced electric system, even during peak demand periods or regional weather events. Moreover, the initiative supports the integration of renewable resources, aligning with Arizona's clean energy goals.

The new market will offer an independent governance structure, ensuring equitable representation for Arizona utilities and customers. This structure will facilitate a balanced influence on the market's trajectory, accommodating unique concerns of different stakeholders, including customers. By striking a balance between market design and GHG policy requirements, the governance structure promotes fair representation and addresses the interests of all parties involved.

However, Arizona's utilities face potential challenges in implementing Markets+, such as managing market seams, clarifying plan aspects, and ensuring adequate ratepayer representation. To mitigate these issues, stakeholders should collaborate to address seams between Markets+ and other balancing authorities, seek clarity on specific plan aspects, and advocate for a balanced governance structure that considers regional priorities.



In conclusion, Arizona utilities' participation in Markets+ presents an opportunity to enhance grid reliability and resilience while reducing costs for customers. By accessing diverse power sources and adopting an independent governance structure, APS, SRP, TEP, and UniSource aim to bolster the resilience of their shared energy grid in Arizona and across the region. Despite potential challenges, the initiative's benefits make it an attractive option for utilities to meet their clean energy targets and provide affordable, reliable service to customers.