Wyoming’s largest utility has joined the new Extended Day Ahead Market for electricity on the Western grid, signaling a major shift in energy sales in the state and potentially reducing rates amid rising energy costs.
This market, which began operations on Friday, allows Rocky Mountain Power, a subsidiary of PacifiCorp, and other utilities across the West to access a broader pool of buyers and sellers. The system aims to meet forecasted demand with electricity produced regionally.
Managed by the California Independent System Operator (CAISO), which handles California’s electricity flow, the market will be overseen by an independent board of electricity experts from the western U.S.
PacifiCorp commenced trading on Thursday night following simulations to resolve issues and evaluate interactions between market prices, demand, and supply. Thursday’s transactions were delivered on Friday, announced via a press call by CAISO and PacifiCorp. PacifiCorp is the first participant alongside CAISO, noted company spokesperson Omar Granados.
Elliot Mainzer, CAISO’s president and CEO, remarked, “We expect enhanced reliability and affordability benefits as the market evolves.”
Michael Wilding, PacifiCorp’s vice president of energy supply management, stated at a February hearing before Wyoming’s Public Service Commission that the company previously met 3-5% of its needs through broader market purchases. This will increase to 100% under the day-ahead market.
Wilding indicated that revenue from sales and savings from cheaper power will result in reduced net power costs for customers.
Power bills have been increasing across the U.S., partly due to electricity-intensive data centers powering AI. In Wyoming, electricity bills rose by 5.5% from 2024 to 2025, according to Energy Information Administration data.
Brian Turner, a senior director with Advanced Energy United, stated that the Extended Day Ahead Market will streamline power transactions, allowing utilities more access to buyers and sellers. “It offers more transparency and liquidity,” said Turner. “There’s a wider pool of buyers and sellers to find the cheapest price.”
PacifiCorp will act as both buyer and seller in the market. If it has cost-competitive power, it can sell it. Alternatively, it can seek cheaper options if demand spikes. Participation is voluntary.
“Economics and local policy will drive the market,” said Turner, who helped establish the Regional Organization for Western Energy, overseeing the market.
Wyoming’s Energy Authority will monitor the market’s impact on local coal, oil, and gas sectors for five years to ensure they aren’t “unfairly penalized” by climate targets in California, Oregon, and Washington, explained John Jenks, the authority’s director of energy market development.
Wyoming, a top fossil fuel producer, has embraced efforts to boost fossil fuels. However, with batteries facilitating renewables as base-load power, Jenks remains “optimistic” about Wyoming’s role in energy reliability.
“Energy policy is crucial for Wyoming,” Jenks emphasized. “We want to ensure developments don’t hinder our economic goals.”
The market launch coincides with soaring energy prices, partly due to the war in Iran, which may shield consumers from economic impacts, said Turner. The U.S. and Israel’s actions in March spiked oil costs, affecting gas prices and other sectors.
Turner explained, “Utilities must meet demand despite rising natural gas prices, passing costs to ratepayers. However, if solar energy from Nevada or Idaho is cheaper, Wyoming can import it rather than pay high gas prices.”
Complete insulation from Middle East price shocks is unlikely for Western consumers.
The Extended Day Ahead Market is the first in the West. The Southwest Power Pool is developing another market with power producers in Arizona, Colorado, and the Northwest.
Original Story at insideclimatenews.org