New Mexico’s utilities, El Paso Electric and the Public Service Company of New Mexico, are considering joining day-ahead markets in order to better manage electricity supplies and demands. This move comes as the utility grid undergoes changes due to the increasing presence of renewable energy sources like wind and solar.
The Brattle Group presented information to the New Mexico Public Regulation Commission, outlining the advantages of joining day-ahead markets like EDAM and Markets+. These markets allow utilities to hedge against changing electricity prices by buying and selling electricity the day before it is produced and delivered.
Regional markets are becoming more important as renewable energy becomes more prominent, and the ability to predict and manage electricity supply becomes more complex. By joining day-ahead markets, utilities can better manage costs and ensure reliability for ratepayers.
Both PNM and EPE are considering the benefits of joining day-ahead markets, with PNM looking into how Arizona utilities are handling their energy transition and how wind energy in eastern New Mexico affects infrastructure. EPE, on the other hand, is weighing the advantages of EDAM over Markets+ based on the Brattle Group’s analysis.
Ultimately, both utilities see joining day-ahead markets as beneficial and a step towards regional collaboration. As they evaluate their options, they are considering what will best benefit their ratepayers and ensure reliable and cost-effective energy management in the future.
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Photo credit nmpoliticalreport.com
