In February 2017, Southwest Power Pool celebrates the 10-year anniversary of our Energy Imbalance Service Market that launched in February 2007. Below is timeline of events leading up to the launch and how are market has evolved over time.
Fourth Quarter - 1999
SPP's board of directors authorized resources for developing a balancing energy and reserves market in response to Retail Open Access initiatives that impacted SPP members operating in some states (Texas, Arkansas, Oklahoma) in SPP's footprint.
First Quarter - 2000
The first stakeholder meetings occurred to begin working on Retail Open Access markets.
Third Quarter - 2000
The market design was completed. SPP awarded contracts to develop the market system.
Third Quarter - 2001
The market systems were delivered to SPP.
Fourth Quarter - 2001
The initial market system was postponed as SPP and MISO sought a merger. SPP staff took the lead on market design efforts for the prospective combined company.
Third Quarter - 2003
With the MISO merger off the table, SPP began work on the Energy Imbalance Service market based on prior efforts regarding Retail Open Access.
First Quarter - 2007
On Feb. 1, 2007, SPP launched its Energy Imbalance Service (EIS) market and began dispatching wholesale electricity. The wholesale energy market allowed for more efficient deployment of generation across the SPP region through the establishment of an offer-based market for energy imbalance service.
The Energy Imbalance Service Market Launch was featured in SPP's 2007 Annual Report.
"We are pleased that our EIS market is up and running," SPP's President and CEO Nick Brown said in a February 2007 press release. "This market will benefit consumers in our region by creating an improved system for managing transmission and encouraging the most efficient use of resources."
The EIS Market launch also was shared in our February 2007 Illuminate Us newsletter.
Work began on "Future Markets," which later became known as the SPP Integrated Marketplace.
Second Quarter - 2009
SPP and the Nebraska Utilities integrated in the most significant expansion of SPP's footprint to occur during EIS.
SPP's board approved moving forward with a detailed market design based on a cost-benefit analysis netting approximately $100 million annually.
SPP's staff size grew in correlation to the growth of our transmission and market transactions over time. The spike seen in 2015 is due to the launch of our Integrated Marketplace.
Second Quarter - 2011
Based on final market protocols, SPP authorized implementation of the Integrated Marketplace no later than the first quarter of 2014.
An aggressive project timeline was developed to ensure we launched the Integrated Marketplace on time and under budget.
First Quarter - 2014
The Integrated Marketplace launched on March 1, 2014. Although the cutover to the new systems went smoothly, the first weekend of go-live presented a significant operational challenge to date as a polar vortex moved through eastern U.S. Throughout the remainder of the year, SPP’s market and balancing authority functions exceeded availability expectations.
SPP's Chairman of the board of directors Jim Eckelberger and President and CEO Nick Brown celebrated the launch of the Integrated Marketplace.
Third quarter - 2016
In their first year of operation, the Integrated Marketplace delivered $380 million in net savings to SPP’s member companies and their customers, paying for itself in less than a year. The markets have provided market participants hundreds of millions of dollars in net savings annually and in September 2016 crossed the $1 billion threshold.
SPP’s energy markets provide a foundation for the future. Looking ahead, the Integrated Marketplace will provide other opportunities for more generation resources to participate in providing energy and ancillary services, with consumers ultimately benefiting from lower-cost and more diverse providers of energy.