Arizona Utilities Will Join Markets+ Energy Pool
Three major Arizona utility providers plan to transition to the Southwest Power Pool platform by 2027.
Updated on Oct. 5, 2026 in Utilities
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Arizona Public Service, Salt River Project, and Tucson Electric Power will join the Markets+ energy trading pool in 2027. This move signals a shift away from the California-led Western Energy Imbalance Market.
Why it matters
Utilities seek to bypass the current governance structure of the Western Energy Imbalance Market, which remains tied to California state leadership. The change reflects a desire for regional autonomy in managing energy trading and grid stability.
The Western Energy Imbalance Market currently coordinates 80% of western utilities, while Markets+ aims to expand its reach. Arizona utilities are now prioritizing this transition to manage power more independently during extreme conditions, such as 115-degree heat in Phoenix.
The players
Arizona Public Service
APS is a major electric utility provider based in Arizona that is leading the transition toward the Markets+ energy pool.
Salt River Project
SRP is a public power utility in the Phoenix metropolitan area involved in the coalition to move toward new energy trading platforms.
Bonneville Power Administration
The BPA is a federal power marketing agency in the Pacific Northwest currently deciding between remaining in the WEIM or joining Markets+.
Travis Kavulla
Kavulla is a regulatory figure who authored correspondence regarding the Regional Organization for Western Energy.
Lea Márquez Peterson
Peterson is an official overseeing the response to the changing energy market landscape and utility integration strategies.
The details
The coalition of APS, SRP, and Tucson Electric Power intends to proceed with Markets+ implementation despite ongoing regional debates regarding governance oversight. California recently amended state laws to allow the Western Energy Imbalance Market to transition to a separate entity known as the Regional Organization for Western Energy.
Timeline
The Western Energy Imbalance Market launched in 2014.
Travis Kavulla sent a letter to the Regional Organization for Western Energy on September 3, 2026.
Arizona utilities face an October 9, 2026, deadline to report on the Bonneville Power Administration letter impacts.
The transition to the Markets+ energy pool is set for 2027.
The Regional Organization for Western Energy takes over WEIM oversight on January 1, 2028.
Market Landscape
The regional energy market is undergoing a significant fragmentation as utilities move to decouple from California-governed systems. This alignment with Markets+ represents a structural challenge to the established dominance of the Western Energy Imbalance Market.
This transition may change how utilities handle energy supply and demand during peak summer heat waves. Residents and businesses should expect long-term adjustments in how electricity is procured and traded across the state grid.
The takeaway
The move to Markets+ illustrates a broader effort by western states to regain control over their regional power grids. Readers can expect further shifts as utilities look to modernize trading to ensure reliability against increasing temperature extremes.
Further reading
For more background on how grid management is evolving, visit the Utilities section.
Source note: This article includes information reported by KJZZ.
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