A regional wholesale electricity market would benefit Colorado, Arizona, and New Mexico largely, according to a new study for the Washington-based business group Advanced Energy Economy. AEE is a broad-based coalition of firms across many industries that support a transition to 100% clean energy and electrified transportation. A western regional transmission organization (RTO) comprised of Colorado, Arizona, and New Mexico “would create thousands of permanent jobs and save ratepayers millions of dollars in annual energy costs,” according to the group.
That conclusion is based on a series of studies done by AEE by Energy Strategies, a Salt Lake City-based consulting firm. Energy Strategies did an overall regional study of a Western RTO, including specific analyses for Colorado, Arizona, and New Mexico. All showed positive economic outcomes of a Western RTO. “Establishing a Western RTO would bring significant economic benefits to the entire West,” said Amisha Rai, Managing Director at Advanced Energy Economy.
AEE’s presentation this week (Dec. 6) did not include data from Nevada. AEE released the Nevada results in September in advance of a state transmission task force meeting. NV Energy, the state’s investor-owned utility, is pursuing joining an unspecified RTO under a state law (Senate Bill 448) passed last year.
For Colorado, AEE says, “joining a Western RTO would create up to 80,000 permanent, living wage jobs, save Coloradans up to $139 million in energy costs annually, and generate up to $216 million in annual state and local revenue. This regional collaboration would also promote renewable energy infrastructure development and help accelerate the state’s trajectory towards meeting climate goals.” Colorado’s recently reelected Democratic Gov. Jared Polis said, “Colorado has committed (SB-72) to join a Western market by 2030, and we look forward to continuing to work with leaders across the region to lower energy costs while making progress towards our goal of 100% renewable energy by 2040.”
Arizona, according to AEE’s study, would see up to 28,200 jobs, up to $81 million in annual state and local revenue while saving ratepayers as much $142 million in energy costs every year. “Joining a regional electric grid is the best way to catapult the state’s energy system into the 21st century, bring electricity costs down for ratepayers, shore up grid reliability and create thousands of new, high-paying jobs across diverse sectors of the economy,” says Steven G. Zylstra, president and CEO of the Arizona Technology Council and SciTech Institute.
New Mexico “could see up to 18,800 permanent, living wage jobs created while saving ratepayers up to $114 million in energy costs annually, while also generating up to $116 million in annual state and local revenue. Joining an RTO would also help New Mexico realize their goals of curbing the state’s carbon emissions, a top priority for Governor Michelle Lujan Grisham.”
AEE is mounting a big effort to jumpstart a Western RTO. Various proposals for a Western independent system operator (another term, along with RTO, for wholesale electricity market) have surfaced over the years, but none have come to fruition. The major tool for AEE’s RTO project is the Energy Strategies region-wide study. AEE’s Cayli Baker told The Quad Report, “AEE plans to release state-specific reports for all 11 states across the West. CA, OR, and WA should be out next week, with WY, ID, UT, and MT slated for after the new year.”
–Kennedy Maize
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