Statement: Momentum for broad Western electricity market that delivers clean, affordable power grows with new commitment from Montana utility

SAN FRANCISCO — The new Western electricity market is expanding its footprint as electric utility BHE Montana announced it will become the eighth participant to sign on to the Extended Day-Ahead Market, a regional market that allows utilities to share low-cost power across state lines.

Launched in May, the Extended Day-Ahead Market gives participating utilities and grid managers a way to coordinate the sharing of electricity a day in advance, helping lower costs and strengthen grid reliability across the West. The market will unlock the West’s abundant clean energy resources as electricity demand surges from data centers and industry, and extreme weather events like heat waves put growing pressure on the grid.

“The West needs a better way to share power to keep pace with surging demand for electricity and to keep the lights on during extreme weather,” said Michael Bueno, Senior Manager, Energy Transition at Environmental Defense Fund. 

“The momentum we’re seeing with the growing Western electricity market matters — because the bigger this market is, the bigger the savings and reliability benefits will be for communities across the West.”

Already, the market has produced $11.38 million in cost savings in its first two months of operation. BHE Montana’s decision to join adds to the growing momentum behind the Extended Day-Ahead Market as Western utilities and grid managers weigh participation in two competing regional day-ahead markets: the larger EDAM and the smaller Markets+ run by Southwest Power Pool in Arkansas.

Multiple studies reinforce that when the grid works as one large market instead of multiple smaller ones — as the West is currently headed toward — utilities can buy lower-cost power and better reduce the risk of outages.

• Arizona: All of Arizona’s three major utilities have indicated their preference for Markets+. If they participate in EDAM, the state could see $114 million in annual savings, which could offset recent and pending rate hikes.
• Colorado: Xcel Energy Colorado is currently committed to Markets+. If it joins EDAM, it will reduce costs on average by $13.2 million annually.