The Southwest Power Pool (SPP) recently marked the five-year anniversary of launching its wholesale electricity market, the integrated marketplace.
In noting the March 1, anniversary, SPP, said market participants have saved more than $2.7 billion. Participants also have previously unimaginable access to renewables across the region. OPPD is a member of SPP, joining the marketplace in 2014.
SPP, a regional transmission organization, touted the integrated marketplace, along with its other services as producing the lowest wholesale electricity costs in the nation.
OPPD’s energy traders work around the clock, 365 days a year selling and buying energy in the integrated marketplace on what amounts to a “trading floor” at OPPD. Once OPPD secures enough electricity for all of its customers’ needs for the day, the energy traders sell any excess power generation on the marketplace.
SPP has 97 members in 14 states, stretching from Texas to the Canadian border. As a regional transmission organization, SPP oversees the bulk electric grid and wholesale power market in their territory.
Earlier this month, SPP announced that 65.7% of power on on Wednesday, April 11 came from wind, a new record. SPP credits new projects around the region to reaching this record. The projects continue to add to the RTO’s generating capacity for wind power.
In launching the integrated marketplace in 2014, SPP added day-ahead generation dispatch, congestion management and real-time balancing solutions. This contributed to the organization’s objective of ensuring reliable and affordable electricity.
Initial projections estimated the integrated marketplace would yield $100 million in annual net savings to market participants. SPP said it has out-performed expectations with an average of $570 million in annual savings. Federal Energy Regulatory Commission calculations from October 2018 had wholesale electricity prices in the SPP region as the lowest in the nation.
“Over the five years since the integrated marketplace went live, it has consistently outperformed our expectations,” said Nick Brown, SPP president and CEO, in a press release. “Our market has continually proven itself to be one of the wisest investments our members have made in terms of economic value to them and their customers and electric reliability across our 14-state region. It has also set us up for continued success well into the future.”