PUC revised its decision to allow more time for western market development, including the establishment of the Regional Organization for Western Energy by the Pathways Initiative.
DENVER, CO—The Colorado Public Utilities Commission (Commission) today revised its decision regarding Xcel’s entry into SPP’s Markets+ to require greater scrutiny of Xcel’s future market-related decision-making amid growing concerns over rising costs, market seams, and governance.
Notably, the Commission voted to restore the June 2029 deadline requiring Xcel to either join a full Regional Transmission Organization (RTO), as mandated by SB 21-072, or explain why it cannot. The Commission made it clear that participation in the limited Markets+ market cannot be used as a justification for avoiding or delaying entry into a full RTO.
The Commission’s decision allows additional time for the development of more comprehensive Western market solutions, including the Regional Organization for Western Energy being advanced through the Pathways Initiative.
Advanced Energy United (United) applauds the Commission in allowing for more time and recognizing that Xcel’s decision to join the smaller, balkanized Markets+ market does not in any way reduce their obligation to join a larger, more comprehensive RTO market.
“We’ve always said Markets+ should not be a dead-end. It’s a tiny market with minimal benefits to Colorado, that may actually frustrate the goals of increasing clean energy and lowering costs,” said Brian Turner, Director at Advanced Energy United. “We’re pleased the Commission agreed with us that Xcel can’t use this tiny market step as an excuse not to go further and join a full RTO as required by SB 72.”
While a divided Commission rejected industry and environmental intervenors’ motions for rehearing, reargument, or reconsideration of its underlying decision to approve Xcel Energy’s entry into Markets+, Commissioner Gilman strongly dissented, reiterating that there was no evidence that Markets+ would save money or allow the utility to meet Colorado’s clean energy goals.
Turner added, “Restoring the 2029 deadline for an RTO application will give policymakers more transparency into the best market for Colorado. The consequences of a fragmented energy market in Colorado and throughout the West will become increasingly apparent over time. As market seams and costs increase, good governance and coordination will be critical to ensure Colorado’s long-term interests and clean energy goals are supported.”