Bonneville’s Rush to Markets+ Puts Northwest Power Customers at Risk
FOR IMMEDIATE RELEASE
March 6, 2025
Bonneville’s Rush to Markets+ Puts Northwest Power Customers at Risk
Today, the Bonneville Power Administration (BPA) announced its draft policy direction to join a day-ahead electricity market and take steps toward joining the Southwest Power Pool’s (SPP) Markets+. This premature decision, made in the face of serious cost and reliability concerns, ignores the very analysis BPA itself conducted—which showed that joining Markets+ could result in higher power costs, reduced reliability, and challenges in integrating clean energy.
“The bottom line is, there is no reason to make this decision now,” said Kayeloni Scott, Executive Director of the Columbia Snake River Campaign. “BPA’s own studies show that Markets+ will cost more than simply maintaining course and staying in the Western Energy Imbalance Market (WEIM). Customers are already facing rate increases, and locking the Northwest into a more expensive, fragmented market structure is reckless. The smart move is to slow down and fully evaluate all options before committing to a path that could harm Northwest ratepayers for years to come.”
A Premature and Costly Gamble
Despite BPA’s claims that Markets+ will offer long-term benefits, every independent analysis—including BPA’s own E3 study—has shown that joining Markets+ would result in hundreds of millions of dollars in added costs compared to remaining in the WEIM. Even the U.S. Senators representing Oregon and Washington State have urged BPA to hold off, pointing out that no scenario shows financial benefits from joining Markets+ at this time.
At a time when the region’s power grid is already facing major challenges—from growing demand to staffing shortages to a backlog of critical transmission projects—this decision only adds more risk and uncertainty. There is no requirement for BPA to make this decision now. The agency won’t even begin participating in a day-ahead market until 2028, yet it is committing ratepayer dollars now, with an upfront investment of up to $40 million that becomes fully binding this spring.
Why Now? California Is Still Finalizing Market Reforms
One of the major justifications BPA has cited for choosing Markets+ over the California Independent System Operator’s (CAISO) Extended Day-Ahead Market (EDAM) is concerns over governance. However, major legislative reforms are currently moving through the California legislature to establish a fully independent, transparent governance structure for EDAM. This effort—known as the Pathways initiative—has made significant progress and is expected to be finalized this year.
If BPA truly wants an independently governed market, it makes no sense to rush into Markets+ before seeing how these reforms play out. The reality is that EDAM, as part of the larger WEIM, already covers 80% of the Western grid and has delivered nearly $100 million in cost savings to BPA customers since 2022. Markets+, on the other hand, remains untested and would require BPA to operate in a fragmented market structure with four isolated regions—raising both costs and reliability concerns. In making its choice, BPA is splitting the West into two markets, diluting the benefits of a unified system.
BPA Should Hit Pause and Make the Right Choice for the Northwest
This is a decision that will shape the future of the Northwest’s energy system for decades. BPA should not be locking in higher costs and unnecessary risks by joining Markets+ before all the facts are clear.
Instead of pushing forward, BPA should:
Stay the course with WEIM, which has already delivered real savings and reliability benefits.
Let the Pathways legislation play out, ensuring all options are fully evaluated before committing to a costly and uncertain alternative.
Put Northwest ratepayers first, prioritizing affordability, reliability, and smart long-term planning over unnecessary risks.
“The Northwest can’t afford to make the wrong choice,” added Executive Director Scott. “We call on BPA to pause this decision and take the time to get it right—before locking in higher costs for every power customer in the region.”
