Choosing the right energy market in the Western U.S. is critical to meet the Pacific Northwest’s projected energy needs while keeping rates low and preparing for a more reliable and resilient energy future that includes abundant salmon and steelhead.
Unfortunately, Bonneville Power Administration (BPA) is hurtling toward the wrong market choice, which would limit our ability to transition to renewable energy and put at risk our economy, environment and Northwest way of life.
Now more than ever, smart energy choices will define the future.
BPA needs to get it right.
U.S. Senators from Oregon and Washington have recently voiced their concerns, urging BPA to make a carefully considered choice. As we move forward to energize our economy, BPA must choose an energy market that fosters reliability and affordability for customers while also protecting our environment—including the salmon that define our Northwest way of life.
We need BPA to make a wise decision for everyone in our region.
See SOS' full-color, full-page ad that ran in the Seattle Times on Sunday, August 18.
BACKGROUND: Bonneville Power Administration (BPA) is rushing a major decision to join a new energy market in the West that could negatively impact our Northwest energy landscape, critically endangered salmon and steelhead, and undermine our nation’s treaties and commitments to Northwest Tribes made more than 150 years ago.
WHAT ARE ENERGY MARKETS AND WHY DOES THIS DECISION MATTER? Energy markets are formal structures through which electric utilities can buy and sell energy. BPA is currently deciding which of the two energy markets in the Western U.S. to join: the Extended Day Ahead Market (EDAM) or Markets+. At this time, BPA appears to be rushing to join Markets+. This hasty decision is not necessary and creates real risk for our region:
I. The Extended Day Ahead Market (EDAM), and the development of a single larger market, provides greater benefits for ratepayers, the environment, and the region. It is a better path to begin transitioning away from our region’s high dependency on the changing and less reliable hydro system. The broad base of clean resources available through EDAM will allow BPA to generate less power from the federal hydro system and enable the development of new carbon-free resources and transmission with less duplication and more efficiency.
II. BPA is needlessly rushing to join Markets+, based in Little Rock, Arkansas, rather than the existing western EDAM. Their decision will ultimately cement the energy landscape in the Northwest for decades to come. As the letter from Senators Patty Murray, Maria Cantwell, Ron Wyden and Jeff Merkley makes clear - BPA must take careful consideration, and complete a thorough and transparent evaluation before making this decision. There are a number of studies still being completed and Markets+ doesn't yet have an approved proposal.
III. If BPA joins Markets+, the Western region will be split into two energy markets, and potential benefits will be significantly diluted. Western utilities and BPA should be encouraged to organize into a single market, not a bifurcated and limited system. A single Westwide power market will allow broader use and development of lower cost, carbon-free power sources that will aid in decarbonizing the energy system and lowering electricity costs for consumers.
HERE’S HOW YOU CAN HELP:
Send a letter of thanks to Senators Patty Murray and Maria Cantwell (WA), and Ron Wyden and Jeff Merkley (OR), for their recent letter to BPA Administrator John Hairston, urging BPA to slow down and make a thoughtful decision about which energy market to join and send a message to Administrator Hairston urging BPA to pause its decision!
ACT NOW: Send a message to WA and OR Senators and BPA
LINKS TO FURTHER INFORMATION:
Press coverage:
- Portland Business Journal: OR, WA senators question Bonneville Power Administration on 'monumental' decision (July 2024)
-
UtilityDive Guest Opinion: A single, unified Western power market will deliver affordability, reliability and climate benefits (April 2024)
The expansion of the Western Energy Imbalance Market with a day-ahead market and a new independent governing authority can open big opportunities for customer benefits and increased grid reliability. - NW Energy Coalition: Energy Market informational page (Spring 2024)
Recent letters from regional policymakers and power utilities to BPA Administrator John Hairston:
- Oregon and Washington’s U.S. Senators (July 2024)
- OR Governor Tina Kotek (March 2024)
- WA Governor Jay Inslee (January 2024)
- Confederated Tribes of Warm Springs (January 2024)
- WA Legislature Energy Committee Chairs (May 2024)
- Oregon Legislative Energy Committee Chairs (May 2024)
- Oregon and Washington State Agencies (July 2024)
- Portland General Electric Company (July 2024)
- Seattle City Light (March 2024)
- Pacific Northwest Generating Cooperative Power (March 2024)
Other resources:
- Deficiency Letter: Federal Energy Regulatory Commission’s response to Markets+ application (July 2024)
- Earthjustice: New Federal Commitments to fight salmon extinction in the Columbia River Basin (Winter 2024)