Arizona Utilities Dive into Emerging Market to Slash Energy Costs

By Daniel Stefanski |

Arizona utility companies are set to enhance their energy market presence through a new partnership aimed at bolstering efficiency and sustainability. Earlier this week, Arizona Public Service (APS), Salt River Project (SRP), Tucson Electric Power (TEP), and UniSource Energy Services disclosed their plans to join Southwest Power Pool’s (SPP) Markets+, contingent upon approval from the Federal Energy Regulatory Commission (FERC) by 2027.

This emerging market forms an interconnected network of electricity providers. As described by the utilities, it facilitates the balance of supply and demand across regions by enabling the transmission of electricity between locations. With this framework in place, Arizona utilities can sell excess energy, including solar power, particularly during low-demand seasons, thereby promoting financial efficiency.

The partnership is projected to yield increased reliability and substantial cost savings for Arizona customers, estimated at around $100 million. These savings are expected to benefit energy consumers of the participating utility companies directly.

“Arizona is one of the fastest growing states in the country, and we are thoughtfully planning for the future,” stated Brian Cole, APS Vice President of Resource Management. “With our neighboring utilities, APS is committed to joining Markets+ to deliver energy efficiently and enhance the resilience of our energy grid.”

Josh Robertson, SRP Director of Energy Market Strategy, emphasized the initiative’s importance for meeting growing energy demands. “SRP’s involvement in SPP Markets+ aligns with our sustainability goals for 2035, allowing us to serve our customers reliably and affordably.”

Erik Bakken, Senior Vice President at TEP, expressed optimism about the collaboration. “Tucson Electric Power and UniSource Energy Services are eager to leverage Markets+ for cost savings and improved access to clean energy sources, reinforcing our commitment to reliable service.”

This strategic alliance among Arizona’s utilities signifies a proactive approach to energy management, promising a resilient and economically efficient future for the state.

Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.