How Market Participation Facilitates Renewable Energy Use in the Region – BizWest

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Platte River Power Authority is a wholesale electricity provider to Estes Park, Fort Collins, Longmont and Loveland. Their diverse energy portfolio includes hydropower, coal, natural gas, wind and solar. In 2018, the Platte River Board of Directors – the mayors and utility directors or board members of each owner community – adopted a Resource Diversification Policy directing management to pursue a 100% carbon-free energy mix while protecting the organization’s core pillars of reliability, environmental responsibility and financial sustainability.

The Resource Diversification Policy noted several advances needed by Platte River to achieve its goal. One is active participation in the organized energy market, where Platte River buys and sells electricity in a multi-state regional market.

“Joining the energy marketplace is key to managing our costs and integrating more renewable energy into our system,” says Jason Frisbie, CEO and general manager of Platte River. “It will take hard work across the organization to fully realize the benefits of membership and become an engaged and knowledgeable participant.”

There are several requirements for participating in the market. Load-serving entities like Platte River must be adequately resourced—meaning they must demonstrate that their resources can meet customers’ electricity demand (plus a margin of reserve) in all weather conditions, all day, every day. For example, a utility with a peak electricity demand of 100 megawatts (with a 15% margin of reserve) must have 115 megawatts of available capacity to participate in the energy market.

Other requirements include liquidity and software, hardware and staff to manage day-to-day operations. Participants who meet all the requirements gain several benefits—most notably, broader access to renewable energy. Energy markets allow utilities to pool resources so they can maximize wind and solar energy production across a broad area.

“Reports show us that regional markets have at times seen up to 90 percent renewable energy meet their system load,” says Melie Vincent, Platte River’s chief operating officer of generation, transmission and markets. “This concentration of renewable energy is not possible without a market, which is why membership is such a critical step for Platte River to achieve our goals.”

Participating in an organized market can also reduce costs. Markets operate on a least-cost basis, meaning that resources with the lowest production and delivery costs are deployed first. Markets also manage regional transmission planning and facilities to deliver resources more efficiently over a large geographic area.

Platte River joined the Western Energy Imbalance Service Southwest Power Pool (SPP) market in 2023 and is preparing to join the Regional Transmission Organization West SPP in spring 2026.

“I appreciate the years of planning and negotiations leading up to this milestone,” said Tyler Marr, deputy city manager of Fort Collins and a member of the Platte River Board. “Joining the market not only moves us closer to our shared energy goals; it also helps expand renewable energy throughout the region, which benefits communities beyond our service area.”

To learn more about Platte River’s commitment to a clean energy future, visit prpa.org/future.