DENVER, Colorado (August 30, 2019) – Four Colorado utility companies announced today that they are evaluating the opportunity to join an energy imbalance market (EIM). They include Xcel Energy, Black Hills Energy, Colorado Springs Utilities and Platte River Power Authority. The partners, who are committed to offering the lowest cost energy to customers, have launched an in-depth study to determine the best course of action.
An energy imbalance market is a real-time market in which energy generation from multiple power providers is dispatched at the lowest possible cost to serve the combined customer demand of the region.
The partners have secured an independent consultant, who is evaluating the benefits and costs associated with utilities’ participation in one of two markets: the Western Energy Imbalance Service (WEIS) proposed earlier this year by the Southwest Power Pool, or the existing Western Energy Imbalance Market, operated by the California Independent System Operator (CAISO).
The study will help the four utilities evaluate which option would provide the most benefit to customers.
“Working together, we have the potential to drive down fuel costs and provide customers with more energy from wind and solar resources,” said Alice Jackson, president of Xcel Energy Colorado. “We’re pleased to continue this regional collaboration and urge other power providers to consider joining us to benefit both customers and the environment.”
“Platte River is committed to providing value to our owner communities,” said Jason Frisbie, Chairman and CEO of Platte River Power Authority. “This is a key component needed to help meet our long-term goal for a noncarbon energy future.”
"Our focus is on delivering long-term value to our customers," said Vance Crocker, Black Hills Energy's vice president of operations in Southern Colorado. "This collaborative approach with our energy partners will allow us to seek market opportunities to lower customers' bills and achieve critical energy policy goals."
"We are committed to offering our customers clean, more diverse and affordable energy," said Aram Benyamin, Colorado Springs Utilities CEO. "This regional partnership provides us the opportunity to integrate more renewable energy into our system at a lower cost.”
Currently, the four energy companies share resources and balance demand for electricity during peak periods through a joint dispatch agreement. The group sees value in joining a larger market to expand opportunities to exchange energy with neighboring utilities and be able to reliably integrate more clean energy into their systems.
This exploration is in keeping with the passage of legislation directing the Colorado Public Utilities Commission to investigate the potential costs and benefits energy markets may provide to energy generators and customers.
The results of the study, which is being conducted by the Brattle Group, is expected by the end of September with a decision expected by the end of the year.
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About Xcel Energy
Xcel Energy (NASDAQ: XEL) provides the energy that powers millions of homes and businesses across eight Western and Midwestern states. Headquartered in Minneapolis, the company is an industry leader in responsibly reducing carbon emissions and producing and delivering clean energy solutions from a variety of renewable sources at competitive prices. For more information, visit xcelenergy.com or follow us on Twitter and Facebook.
About Black Hills Energy
Black Hills Corp. (NYSE: BKH) is a customer focused, growth-oriented utility company with a tradition of improving life with energy and a vision to be the energy partner of choice. Based in Rapid City, South Dakota, the company serves 1.27 million natural gas and electric utility customers in eight states: Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota and Wyoming. More information is available at www.blackhillscorp.com and www.blackhillsenergy.com.
About Platte River Power Authority
Platte River Power Authority is a not-for-profit wholesale electricity generation and transmission provider that delivers safe, reliable, environmentally responsible and financially sustainable energy and services to its owner communities of Estes Park, Fort Collins, Longmont and Loveland, Colorado for delivery to their utility customers.
About Colorado Springs Utilities
For generations, Colorado Springs Utilities has provided electricity, natural gas, water and wastewater services to the Pikes Peak region. As a community-owned utility, its customers enjoy competitive prices, exceptional hometown service, sustainable solutions for a healthier environment and a voice in how their utility operates. For more information, visit csu.org or follow us on Twitter and Facebook.
