New Mexico Utilities Considering Joining Day-Ahead Markets for Better Grid Management
Two of New Mexico’s investor-owned utilities, El Paso Electric and Public Service Company of New Mexico, are exploring options to partner with other electricity providers in the region to manage their supplies and demand in the changing utility grid. They are considering joining day-ahead markets to better hedge against changing electricity prices.
The consulting firm Brattle Group presented the advantages and disadvantages of joining existing day-ahead markets to the New Mexico Public Regulation Commission. These markets allow utilities to buy and sell electricity the day before it is produced and delivered, helping to manage the increasing presence of renewable energy sources like wind and solar.
The utilities are currently participating in the Western Energy Imbalance Market for real-time management of regional electricity supplies and demands. They are looking at benefits for ratepayers and considering connectivity with Arizona utilities and wind energy developments in eastern New Mexico when deciding which day-ahead market to join.
Both utilities emphasize the importance of regional collaboration and decision-making driven by potential cost benefits and reliability improvements. Despite differing past analyses, they agree that joining a day-ahead market is more beneficial than not joining, and plan to implement a decision as soon as possible.
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