Just as you wouldn’t set off on a great American road trip using a 50-year-old paper map, Colorado shouldn’t be making decisions about regional electricity markets using 20-year-old assumptions about the western grid. Choosing the wrong market could lead to some very expensive mistakes, burdening ratepayers with higher costs and lower reliability and steering Colorado’s clean energy ambitions into a dead end.
A regional electricity market is among the most powerful tools in the toolbox for lowering electricity costs, improving reliability and resiliency to extreme weather events, and integrating Colorado’s abundant renewable resources into a 100% clean grid. In the next few months, Colorado utilities like Xcel Energy and Tri-State will have the opportunity to join with neighboring states and utilities in a regional market, and the benefits have the potential to be great. Colorado’s participation in a regional market could allow the state to trade electricity across the West, tapping into resources like hydro from the Northwest or geothermal from Nevada. In return, it could sell excess clean energy produced by local wind and solar.