Arizona Utilities Proposed Shift to Markets+ Energy
APS and Tucson Electric Power seek to move toward a new energy market to improve efficiency and reduce long-term costs.
Updated on Oct. 13, 2026 in Utilities
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Arizona utilities have submitted proposals to the state's Corporation Commission to join the Markets+ energy trading framework. The move aims to enhance grid efficiency and address increasing energy demands and reliance on intermittent power sources.
Why it matters
By joining Markets+, utilities seek to stabilize energy supply and improve value for Arizona customers. The transition responds to the necessity for better resource planning as weather volatility and energy consumption needs evolve.
APS projects that switching to Markets+ could generate annual savings between $24 million and $48 million. This figure compares to the $10 million to $13 million the utility estimates it would save by participating in the Western Energy Imbalance Market's day-ahead option.
The players
Arizona Corporation Commission
This is the state agency responsible for regulating public utilities and overseeing energy market strategies in Arizona.
Lea Márquez Peterson
She serves as a commissioner for the Arizona Corporation Commission and requested impact assessments regarding market changes.
Nick Myers
He is an Arizona Corporation Commissioner who has expressed support for the Markets+ energy trading initiative.
APS
Arizona Public Service is a major utility provider in the state currently evaluating its future energy market participation.
Tucson Electric Power
This is a regional utility company that is currently proposing a transition to the Markets+ trading market.
The details
Utilities are currently participating in the Western Energy Imbalance Market managed by the California Integrated System Operator. Markets+ requires participants to adhere to specific Western Power Pool resource adequacy standards, which differs from the Extended Day-Ahead Market requirements.
Timeline
September 23, 2026: Commissioner Peterson requested utility impact reports.
October 9, 2026: The deadline for utilities to submit responses to the commissioner passed.
2027: Markets+ is scheduled to begin operations.
2028: California is set to transfer governance of the Western Energy Imbalance Market to an independent board.
Market Landscape
The proposal to adopt Markets+ reflects a broader strategic realignment among Western utilities aiming for greater autonomy and efficiency in regional energy trading. This move contrasts with the current reliance on the California Integrated System Operator and seeks to bypass the limitations of existing imbalances.
Customers may see long-term value improvements as utilities optimize grid efficiency and resource planning. While the market shift is largely operational, successful participation is intended to better manage costs associated with extreme weather and rising demand.
The takeaway
The move toward Markets+ underscores a regional shift in how utilities handle resource adequacy to ensure stability. Residents and businesses should anticipate continued regulatory oversight as the commission weighs the financial impacts of these new energy trading standards.
Further reading
For more information on regional grid operations, see Arizona Utilities.
Source note: This article includes information reported by KJZZ.
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