A coalition of environmental groups is suing Bonneville Power Administration over its decision to join a new Western electricity market from the Southwest Power Pool.
The lawsuit, filed in the 9th Circuit Court of Appeals, alleges that Bonneville ignored laws requiring it to prioritize lower prices and expand renewable energy when it opted to join SPP’s market rather than one started by the California Independent System Operator. The California market, the groups say, offers a larger footprint with more potential benefits for the Northwest transmission grid operator.
BPA — a federal agency that distributes hydropower from the Columbia River Basin — has said that joining SPP’s day-ahead market will boost reliability and lower costs. The market, known as Markets+, would allow BPA to buy and sell power across a larger footprint stretching East and South to better protect against shortages in extreme weather and other grid emergencies.
BPA’s own modeling showed that the cost savings would be even greater if it joined the California market, known as the Extended Day Ahead Market (EDAM). However, the grid operator said it had concerns about how EDAM would be governed and said that SPP offered a better market structure.
